The Baltic Dry Index fell 4.7 percent to 484 points, the lowest in Baltic Exchange data starting in January 1985. Rates for three of the four ship types tracked by the exchange retreated. China, which makes about half the world’s steel, is on track for the biggest drop in output for more than two decades, according to data compiled by Bloomberg Intelligence.
The Baltic Dry Index, a measure of the cost of transporting commodities, plunged to a record amid signs of slowing economic growth in China that’s also hurting the nation’s stock market.
The index retreated 1.1 percent to 468 points, tumbling below a previous record low set in December. Rates declined for all except one of the vessel types monitored. China moved to support its sinking stock market after a $590 billion sell off as state-controlled funds bought equities and the securities regulator signaled a selling ban on major investors will remain beyond this week’s expiration date, according to people familiar with the matter.
GoghGoner wrote:Messed up market place. You wonder when the pain in some sectors will spill over.
Baltic Dry Ship Index Tumbles to Fresh Record Amid China TurmoilThe Baltic Dry Index, a measure of the cost of transporting commodities, plunged to a record amid signs of slowing economic growth in China that’s also hurting the nation’s stock market.
The index retreated 1.1 percent to 468 points, tumbling below a previous record low set in December. Rates declined for all except one of the vessel types monitored. China moved to support its sinking stock market after a $590 billion sell off as state-controlled funds bought equities and the securities regulator signaled a selling ban on major investors will remain beyond this week’s expiration date, according to people familiar with the matter.
Outcast_Searcher wrote:As long as real global GDP, global airline miles travelled, etc. continue to trend solidly upward, then global economic growth is occurring. That does NOT mean it is sustainable in the long run, of course.
Chinese manufacturing surveys showed that any hope for a recovery in the sector were premature, with factory activity contracting for a 10th consecutive month in December and at a faster pace than in the previous month.
Manufacturing shrinks for 1st time in over 2 years: PMI survey
Recent manufacturing releases have missed expectations, and the negative trend continued on Monday. ISM Manufacturing PMI, a key indicator, slipped to 48.2 points, well short of the forecast of 49.1 points. This weak reading is raising concerns, since it marks back-to back releases below the 50-point level, which separates expansion from contraction. It is also the sixth consecutive month that the PMI has softened. As well, ISM Manufacturing Prices dipped to 33.5 points, well below expectations.
"Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are generally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009."
GoghGoner wrote:Real GDP growth is also an important indicator. One could start a thread on that and debate what the number is or what it should be since it may be politically biased.
Airline miles? Can you link to some economic papers on the value of such a number?
pstarr wrote:One number. Kidding?
Most of Europe (West, East, Baltic and Mediterranean sans Germany and a few socialist Scandinavian states), Japan, all of Africa, the ME and probably South America, Indonesia (did I miss anything), Southeast Asia (most of the middle class in the USA) is mired in the Greatest and Final Depression of All Time. And here you are monkeying around the edges? Outcaste. Outcaste you are an OUTCASTE, for dog's sake. Do not listen to the mainstream cheerleading section of your media.
GoghGoner wrote:Bank of America: Rail Traffic Is Saying Something Worrying About the U.S. Economy"Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are generally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009."
Of course, many would argue that a shift away from coal-powered energy, a slowdown in the industrial sector, and the petering out of the U.S. shale boom would naturally lead to fewer goods being moved by rail. Hoexter and his team, however, suggest that the slowdown is spreading to more consumer-oriented segments. Intermodal carloads typically related to consumer goods were up 1 percent in the first quarter of 2015 and 3.6 percent in the second quarter but fell 1.7 percent in the final quarter of last year.
"We will let the market play a decisive role, we will let businesses compete against each other and let those unable to compete die out," the state-run Beijing News quoted Li as saying. "At the same time, we need to prioritize new forms of economic development."
China needed to set ceilings on steel and coal production volumes and government officials should use remote sensing equipment to check companies, the premier also said, according to the article, which was re-posted on the State Council's website.
Do you have a meaningful citation for your claim? Remember, it's not the spring of 2009 for nearly 7 years now
Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.
This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped.
Newfie wrote:Well, as they say, they are NOT marine experts. As such they should keep their mouth shut least they prove themselves fools.
They checked online AIS reports. Big deal. It doesn't even show what is past about 70 miles of the coast. IF it is reporting correctly.
So they know NOTHING!
Rod_Cloutier wrote:Do you have a meaningful citation for your claim? Remember, it's not the spring of 2009 for nearly 7 years now
It's not my claim, but zerohedge is reporting this today:Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.
This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped.
http://www.zerohedge.com/news/2016-01-1 ... -come-halt
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