Michael Berger emails to point out that the Baltic Dry Index is down 3% today.
The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the Index tracks worldwide international shipping prices of various dry bulk cargoes. The index provides an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a time charter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain.
It is a very good index to track to understand how much international trade activity is going on. That the BDI continues to decline suggets that international trade activity is slowing.
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