“The Baltic Index Sliding to 1,500?”

Is the 33rd consecutive day of decline problematic?

The Baltic Dry Index fell for the 33rd consecutive day settling at 1790, a decline of 561 since the first of July.

CSX reported good numbers for the quarter yesterday. But the transporter of coal may find distress if the Index indicates a falling demand for dry bulk shipments to China.

It also appears that iron ore demand has declined in China. If, in fact, it is falling instead of just the addition of more ships them the BDI is an indicator of the slowing global economy. If the number of ships has increased then it is, obviously, a contra indicator of real shipping demand.

Either way, it is important to keep a watchful eye and be at least slightly fearful if it continues its precipitous fall!

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