The Fed's most recent money printing slowdown appears to be impacting the shipping industry.
Port statistics were a leading indicator before the production collapse last year, and they may be signalling that a double dip downturn is in the early stages of formation.
Amrita Sen at Barclays Capital says the number of Baltic Dry ships waiting to berth — mostly in China and Australia — has begun to fall after peaking at 154 in mid-June.
The Capesize Iron Ore Port Congestion Index is replicating the pattern seen a year ago just before the commodity collapse.
The Baltic Dry Index measuring freight rates jumped 450% in the first half of the year, but has begun to fall back over the last two weeks.
Brace yourself, this may get very ugly.
ViaRevolutionRadio
No comments:
Post a Comment