The recent plunge of the Baltic Dry Index has by now been relatively well documented. Thing is, the Baltic Dry measures shipping rates for just one facet of the economy -- primarily dry bulk commodities demand from developing nations (mostly China) against global dry bulk ship supply.
What many have missed, however, has been the surging rates for container shipping, which primarily measure demand for products from developed nations (mostly the U.S. and Europe) against global container ship supply.
On this front, the data shows a continued rebound, which oddly began just around when markets renewed their bearishness vs. Europe and the U.S.:
Just a near-term lagging blip about to collapse? Market participants don't think so:
Braemer Shipping Services, July 5th:
Lines are prepared to pay a slight premium at this stage to secure suitable tonnage longer term and therewith hedging themselves against potentially further rising rates... In general, it is apparent that the confidence in the market is returning, highlighted by ever more new faces appearing on the scene looking at capitalising on the opportunities available.
Note that the above index doesn't apply to bulk shipping companies such as DryShips (DRYS) or Diana (DSX), but rather to container shipping companies such as Neptune Orient (NOL SP) in Singapore or Seaspan (SSW, though Seaspan will have long-term contracts).
Disclosure: No positions