Baltic Dry Index Collapses 35% – Worst Start To Year In 30 Years
When this indicator of global trade rises, everything is rosy and reams of asset-gatherers and talking-heads wil quote it as indicative of how great the world is. When it drops – silence. There’s always an excuse – over- or under-capacity, too many ships, too few ships, etc. However, the last 2 weeks have seen a 35% collapse in the cost to ship bulk. There is a relative seasonal pattern over the holiday period – with shipping costs rising into the holiday and falling after but… this is the biggest drop from a Christmas Eve since at least 1984, 30 years! Seems like the inventory stacking of Q4 had absolutely no follow-through whatsoever…
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David, The ships are on stand-by to repatriate Germany’s gold from the US…
This story and the failure to meet the first repayment of Germany’s gold last month are two important warnings concerning how close we are.