Baltic Dry Index Crashes 18% In 2 Days

Monday, January 13, 2014
By Paul Martin

by Tyler Durden
ZeroHedge.com
01/13/2014

We noted Friday that the much-heralded Baltic Dry Index has seen the worst start to the year in over 30 years. Today it got worse. At 1,395, the the Baltic Dry index, which reflects the daily charter rate for vessels carrying cargoes such as iron ore, coal and grain, is now down 18% in the last 2 days alone (biggest drop in 6 years), back at 4-month lows. The shipping index has utterly collapsed over 40% in the last 2 weeks. We are sure this is just a storm in a teacup and that all the hopes and prayers of a global manufacturing renaissance will come true. Cue, “this is not a demand issue, it’s an over-capacity issue” excuses in 3…2…1… now where would the container ships get their idea to increase capacity? (hint: central planner-based mal-investment)

The Rest…HERE

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