Goldtent TA Paradise

BDI

1. Parabolic Chuck says:

   February 1, 2019 - 1:14 pm at 1:14 pm

   Well darn it. Deflationary Chuck missed that one 😉

   Thanks for sharing Fully

2. North says:

   February 1, 2019 - 3:00 pm at 3:00 pm

   The slowing down in the world economy that the Fed was talking about yesterday. Fed will have to goose the stockmarket with QE, the dollar down, PMs up.

3. Triplehstocks says:

   February 1, 2019 - 3:27 pm at 3:27 pm

   More info from https://en.wikipedia.org/wiki/Baltic_Dry_Index

   On 20 May 2008, the index reached its record high level since its introduction in 1985, reaching 11,793 points. Half a year later, on 5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986;[9] though by 4 February 2009 it had recovered a little lost ground, back to 1,316.[10] These low rates moved dangerously close to the combined operating costs of vessels, fuel, and crews.[11][12]

   By the end of 2008, shipping times had been already increased by reduced speeds to save fuel consumption, but lack of credit meant the reduction of letters of credit, historically required to load cargoes for departure at ports. Debt load of future ship construction was also a problem for shipping companies, with several major bankruptcies and implications for shipyards.[13][14] This, combined with the collapsing price of raw commodities created a perfect storm for the world’s marine commerce.

   During 2009, the index recovered as high as 4661, but then bottomed out at 1043 in February, 2011, after continued deliveries of new ships and flooding in Australia.[15]

   Though rebounding to 2000 on 7 October,[16] by 3 February 2012, the index made a new multi-decade low of 647 on a continued glut of dry bulk carriers and decreases in orders of iron and coal.[17]

   On 10 February 2016 the Baltic Dry Index reached the historic low of 290.[18]

   By November 15, 2016 it rebounded to over 1000 sending the entire shipping industry to massive gains. Some companies reached 2000%+ in share price gains in as little as 5 days.

4. Triplehstocks says:

   February 1, 2019 - 3:32 pm at 3:32 pm

   Another key factor was that ships were overbuilt in the good years before the 2008 top and created a glut. That is deflationary: too many ships chasing a declining market / supply of capacity growing faster than demand.