Proof The Bible Is True

A key index of global shipping prices is nearly 50% below its previous record low level.

 

We swore we wouldn’t devote any more Charts Of The Day to the Baltic Dry Index (BDI) after it broke its all-time low in November. Things are really getting out of hand now, though, so it deserves at least a mention. The previous record low in the BDI was 553, set back in 1986. Upon breaking that low in November, the BDI continued to crater. As of today, the Baltic Dry Index is listed at 303.00 – nearly a full 50% below its previous all-time low.

 

So what is the Baltic Dry Index? The BDI is a composite of various global shipping rates tied to the movement of raw materials. Why is it important? It can serve as a barometer of the global trade environment, as well as a measure of inflation based on global trade. If that is the case, the trade environment would appear downright dismal.

 

Read More: Global Shipping Rates Run Dry « InvestmentWatch