Baltic Dry Index update
February 5, 2010
Hats off to Bespoke for updating us on the Baltic Dry Index. We believe its weak chart pattern does not bode well for China and its export market.
Bespoke: The Baltic Dry Index, which measures changes in the cost to ship goods by sea, is about as volatile as an option contract. As shown in the chart below, the index has had a number of major swings over the past few years and months. We can't imagine what it must be like in the shipping industry to have to deal with these kinds of price changes all the time.
Since December 2008, the index has risen by 547%, fallen by 50%, risen by 115%, and is currently down 42% since November 19th. Going back farther, from 2005 to mid-2008, the Baltic Dry rose 575%, and then it fell 94% from its peak to its trough on December 5th, 2008.
Source: Bespoke
