Another indicator of global trade and how the economy is faring.
Baltic Dry Index - Wikipedia, the free encyclopedia
some snippets if you don't want to read all of it:
"Most directly, the index measures the demand for shipping capacity versus the supply of
dry bulk carriers."
"Because it provides "an assessment of the price of moving the major raw materials by sea," according to The Baltic, "... it provides both a rare window into the highly opaque and diffuse shipping market and an accurate barometer of the volume of global trade -- devoid of political and other agenda concerns."
Now here is where it gets interesting and may be something to keep your eye on:
"On
21 May 2008 the index reached its record high level since its introduction in 1998, reaching 11,793 points. Half a year later, on
5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986. These low rates move dangerously close to the combined operating costs of vessels, fuel, and crews.
Cheaper fuel was no longer able to offset this situation and global letters of credit are beyond the powers of the Federal Reserve."
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