Baltic Dry Index Now on 23-Day Winning Streak

The Baltic Dry Index, which measures global shipping rates, continues to soar back from its low of 663 seen in late 2008. The index is currently on a 23-day winning streak, and at 4,291, it is up 547% from its low. Unfortunately, the Baltic Dry fell 94.7% from its 2008 high, so it still has to rise another 175% to reach new highs. Regardless of the distance from its prior high, the sharp rebound in shipping rates definitely provides ammo for those that argue that the global economy is recovering.

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Comments

[Donald Ingram:]

Yes. Certain parts of the global economy are recovering, of this there is no doubt. Yet there are other certain parts that are being by-passed.
Like the United States. The dollar is being dropped just as fast as people can find somewhere to dump it. Long Treasuries are being avoided like the plague. Governments are requesting that their sovereign wealth (gold bullion) that is on deposit be returned to them. Lets all pray that its still there! So yes. The BDI is up and will continue to climb. Too bad most of the shipments won't be docking in any US port.

Jun 05 02:20 AM

[Tim Plaehn:]

BDI dropped sharply yesterday and futures were down also. Shipping prices driven primarily by China stocking up on cheap iron ore and coal.

Jun 05 08:38 AM

[Up Yours SP500:]

The BDI will not reach its prior highs for a while. Who is going to ship to the U.S. when the consumer has no money to spend? Let's be honest, emerging markets are still getting their sh*t straight, and the U.S. market is the biggest consumer market. If the importers are not importing, all the shipping companies will be cutting each others throats for the lackluster business that does exist.

Jun 25 01:49 AM