The Baltic Dry Index has slid toward a two year low—almost unnoticed!
When last I wrote an article asking whether the Baltic Dry Index was telling us something about the economy it had fallen 33 straight days, to 1,790 (Jul 13,10), and two days later hit its low at 1,700 (Jul 15,10).
Last July the Baltic was sliding toward 1,500 seemingly contradicting the predictions of a growing economy and the rapid growth in China. And after reaching its low on July 15th the index began a steady rise to 4,507 in November.
Since that November high the BDI has steadily declined to 1,043 on Friday, and rose to 1065 on Tuesday. Part of the problem is the glut of new ships coming online as described by Ryan Eden in his article at The Street, “Dry Bulk Shippers Continue Deep Slide,” in January.
Is the BDI telling us something about the future of the global economy?