The Baltic Dry Index Is Down 60% Year-To-Date; Worst On Record

These are the reality checks no one is talking about. Shipping has run aground folks.

What trade?

In the event you wondered whether global trade was increasing, wonder no more, as the index would not be declining if there was relief or a bottoming out. The reality is that demand for goods is declining and shipping rates cannot increase until there is a end to the free fall in demand.

The Baltic Dry is hovering near post-crisis lows.

Zero Hedge
By Tyler Durden
24 June 2014

The Baltic Dry Index - so admired when it is soaring and supportive of all things great and good about credit creation and rehypothecation - has collapsed over 60% year-to-date. At $867, the index is at one-year lows and hovering near post-crisis lows as the hope-strewn surge of last year now lies torn asunder by the reality of China commodity ponzi probes and a 'real' slowing global economy.

With the worst first-half of the year on record...

Of course, we will hear the echo chamber of 'over-supply' of ships rather than any 'under-demand' of actual aggregate product argument but the circularity of this argument is entirely lost on status quo huggers who viewed rising dry bulk commodity prices as indicative of growth (and built more ships) as opposed to the ponzi-financing scheme it really was... mal-investment writ large once again in a manipulated (and mismanaged) world.

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