The Baltic Dry Index is an index of dry shipping lease rates. It reflects how much it costs to rent a freighter for hauling non-liquid raw materials and it has dropped dramatically since the beginning of 2013. [What does that mean?]
So writes Katchum in edited excerpts from a recent post* on his blog (http://katchum.blogspot.ca) entitled Baltic Dry drops.
This post is presented compliments of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Katchum goes on to say in further edited excerpts:
There is a high correlation between BDI [see chart below] and the Chinese economy. If the BDI drops, the commodity trade drops – together with the Chinese economy - [go here for today's latest chart]. The Panamax and Supramax (for smaller ships) has also dropped considerably, which confirms the slowdown in every sector of the freight transport economy.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://katchum.blogspot.be/2012/01/baltic-dry-drops.html (Written by Albert Sung; Subscribe to Katchum’s macro-economic blog; Sung is also an accomplish pianist and composer as well as financial analyst. Listen to an assortment (24) of his classical compostions here.)
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