Posted on 11/21/2015 2:53:53 PM PST by Lorianne
This market is looking like a disaster and the rates are a reflection of that," warns one of the world's largest shipbrokers, but while The Baltic Dry Freight Index gets all the headlines - having collapsed to all-time record lows this week - it is the spefics below that headline that are truly terrifying.
At a time of typical seasonal strength for freight and thus global trade around the world, Reuters reports that spot rates for transporting containers from Asia to Northern Europe have crashed a stunning 70% in the last 3 weeks alone.
(Excerpt) Read more at zerohedge.com ...
But is this turndown a short or long term effect ?
???
I agree.
Is the arms market experiencing the same 'dip' ?
Good points.
The huge container ships being built these days will have freight, because their shipping costs are so much lower than older ships. It is the older, smaller ships that will go to the scrap yard.
Those in the know, go BDI...oh, wait...
Is this how the Syrians are shipped?
7 year cycle just as Johnathan Cahn pointed out in "The Harbinger".
in days not to long ago, I called on a company that manufactured the light sensitive plastic sheets used to print the corrugated cartons.
they exported them to many nations
Their shipments were a direct indicator of foreign export sales and thus my business.
Don’t give them ideas!
The other factor in the BDI decline is an increased supply of ships- which isn’t very concerning.
If the decline was caused solely by a decline in demand for shipping then, indeed, it would be alarming.
I see ships too big to go through the Panama canal are renting for about $4000 a day.
Someone should start a business renting them to rich parents for birthdays and other children’s events.
Cut the gravy train (heartless as that may sound).
Bring back self-reliance, pride, dignity, self-confidence, accomplishment, satisfaction, independence, liberty, freedom, love for God, family, country. etc.
That’d be much more rewarding and not nearly as heartless as being forced into a hand-to-mouth life of dependence on socialist government.
Reaganesque leadership: Real Americans would always prefer a paycheck to a welfare check.
Also meat, grains and all energy prices are down. All signs of deflation. But in this schizo US economy housing and stock market are stable or inflating
It is always 2 sides of the coin. Cheaper consumer goods = lower profits = layoffs and fewer jobs created.
If you have a secure job, you can enjoy the lower prices. Others can enjoy then too, while they have an income.
Today I filled my van with diesel fuel. The price was $2.05 per gallon
Does Zero Hedge have any credibility?
The spot price isn’t a good indicator of the health of the whole shipping industry — although it does yield the most sensational numbers.
If you got a seat-sale deal of 75% off the ticket price; would you conclude that you need to rush to short airline shares?
No doubt, something is happening here: but, sensationalized articles, using cherry-picked statistics, are not informative.
Because somewhere there is an elderly old widow who is a shareholder in one or more of these companies and her quarterly dividend check will be reduced.
And besides, even if it just so happened to be the case that the vast majority of stock is owned by crony capitalists, everyone knows that we all go to work everyday to increase shareholder value. Anything that threatens shareholder value, threatens the American Way of Life.
Please say prayers for the Baltic Dry Index. It's only the patriotic thing to do.
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