Posted on 08/23/2010 7:48:26 AM PDT by blam
The chart is much more instructive than the writer. The BDI looks to be range bound, and the range has been moving between terrible and lousy for about a year.
The Russian grain crop problem was my first thought as well. I'm not so sure this is a general trend. It may be a reaction to a specific crop failure.
China continues to grow its economy. Russia has to import wheat to survive. How do these events portend economic growth in the USA for anyone but our wheat farmers?
I looked but could not find a similar report on container shipping volume/demand
Do you know of such?
My little business’s volume is a function of container shipping. So Far, it looks like August ‘10 is the worst month in 15 years and that includes the month it began.
” I looked but could not find a similar report on container shipping volume/demand “
I would imagine that your “boots-on-the-ground” experience is a more accurage measurement than any ‘bent/folded/stapled/mutilated’ Government ‘report’...
” accurage “
Should be ‘accurate’...
That’s why I don’t have a TV!
The BDI is a little misleading.
Yes, the index is up, but that is because the number ships that have now been mothballed and in storage has caused an increased demand for ships still operating.
Ghostship creek: The fleet of huge ships mothballed by the recession on a Cornish river that has become an unlikely tourist attraction
I may be wrong about this, but I believe this is one of the biggest factor influencing dry bulk shipping right now.
I've seen one posted on FR before but I don't know what it was.
Thanks for that little tidbit that puts the numbers into proper perspective.
Here's an even longer perspective
So the BDI is at the 2003 level.
Apparently yes. Notice the rapid, near vertical rise.
Guess what? The rise is very close to the April 2003 announcement of the Bush tax cuts.
Grains are plentiful in one part of the world and in short supply in others - Russia for one.
Wildly speculating here - but can we trust Putin when he says their grain harvest is smoked? Are there independent assessments available?
Are those the same tax cuts that will sunset at the end of this year? If so, watch that BDI drop vertically.
Interesting isn’t it.
Yes, I’m pretty sure they are the same tax cuts
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