“Drastic - a collapse in international trade.”
The BDI shows the cost of shipping, not the volume of shipping. It is relative to supply and demand in container ships, as opposed to an indicator of goods traded.
Wikipedia:
“The Baltic Dry Index (BDI) is an economic indicator issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides “an assessment of the price of moving the major raw materials by sea. Taking in 23 shipping routes measured on a timecharter basis, the index covers Handysize, Supramax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain.”[1]”
Low BDI = lower cost of shipping goods.
Lower market costs are Double Plus Good.
Thank you for the balancing information. Economics is always a complex picture.