{"id":17410,"date":"2016-02-04T16:14:48","date_gmt":"2016-02-04T21:14:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17410"},"modified":"2016-02-04T16:14:48","modified_gmt":"2016-02-04T21:14:48","slug":"worlds-biggest-containership-hard-aground-as-baltic-dry-crashes-below-300-for-first-time-ever","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17410","title":{"rendered":"World’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever"},"content":{"rendered":"

World’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever<\/a><\/h3>\n
Before this year the lowest level The Baltic Dry Index had reached was 556 in August of 1986 and the highest was in June 2008 at a stunning 11,612. Today saw the freight index hit a new milestone however, crashing through the 300 barrier for the first time ever – at 298, this is almost\u00a050% below the previous record low<\/strong>.<\/div>\n
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Commodities obviously are saying something very different from “the market”…<\/p>\n

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And as Dana Lyons notes,<\/a>\u00a0of course much of the input into the BDI comes from the price of raw materials. Considering the deflationary spiral in commodities, the drop in the BDI to all-time lows shouldn\u2019t be a shock.<\/p>\n

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However, the depths that the index is now plumbing is quite alarming and suggests trouble in the global trade picture.<\/strong><\/div>\n

It would also suggest perhaps that\u00a0the deflationary pressure is not just a supply issue<\/strong><\/u>.\u00a0Consider every prior drop in the Baltic Dry Index down to the 500-600 level. Each time, the index immediately jumped as if latent demand was just waiting for those lower prices. That development has not yet occurred this time around, even as prices are reaching 45% below the previous record low.<\/strong><\/p>\n

The Baltic Dry Index has become a trendy thing to mention in recent years when discussing global market and economic conditions. The truth is, nobody really ever knows for sure what the broader message is behind the index\u2019s behavior.That said, this recent plunge is making it quite difficult to conceive that it means anything positive in terms of the global economy and deflationary pressures.<\/strong><\/p><\/blockquote>\n

And finally it’s not just commodities and the Baltic Dry that stalled,\u00a0as gCaptain reports,<\/a>\u00a0one of the\u00a0world\u2019s biggest containerships is hard aground in Germany\u2019s Elbe River leading to the port of Hamburg.<\/strong><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

World’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever Before this year the lowest level The Baltic Dry Index had reached was 556 in August of 1986 and the highest was in June 2008 at a stunning 11,612. Today saw the freight index hit a new milestone however, crashing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10469,3594,130,359,366,3761,805,4318],"class_list":["post-17410","post","type-post","status-publish","format-standard","hentry","category-economics","tag-baltic-dry","tag-baltic-dry-index","tag-china","tag-germany","tag-global-economy","tag-global-trade","tag-trade","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17410"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17410\/revisions"}],"predecessor-version":[{"id":17411,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17410\/revisions\/17411"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}