3 ms·
The so-called economic recovery described in a single graph.
- swiecki 15y agoI just wanted to point out the obvious to any potential readers: this is just one indicator and does not reflect what is happening in all sectors of the economy. Rather, it a price chart of commercial shipping services. Useful, but definitely not the end-all be-all economic recession indicator that the author makes it out to be.
- DenisM 15y agoNot just me: Because dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate or finished goods, such as concrete, electricity, steel, and food, the index is also seen as an efficient economic indicator of future economic growth and production. The BDI is termed a leading economic indicator because it predicts future economic activity.[7] And: "People don't book freighters unless they have cargo to move." http://en.wikipedia.org/wiki/Baltic_Dry_Index#Why_economists_and_stock_markets_read_it http://en.wikipedia.org/wiki/Baltic_Dry_Index#Why_economists...
- mkr-hn 15y agoA lot of ships were ordered and never used due to the recession. Ship owners are going to experience the same problem the housing market is: more supply than can be realistically demanded. Though someone's going to figure out a way to turn it into a bubble.
- DenisM 15y agoSource? The only way too many ships being built would affect the picture that way if those ships entered service since after mid 2008. I'd like to see a source for that.
- mkr-hn 15y agohttp://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession-anchored-just-east-Singapore.html http://www.dailymail.co.uk/home/moslive/article-1212013/Reve... I remember going on Google Maps and seeing what looked like a lot of ships docked right where they were supposed to be, but I lost the coordinates. edit: http://www.marinetraffic.com/ais/ http://www.marinetraffic.com/ais/ I'm looking to see if it's still there.
- DenisM 15y agoGood article, well sourced. Thanks.
- mkr-hn 15y agohttp://www.cruisersforum.com/forums/f80/the-singapore-ghost-fleet-35010.html#post385926 http://www.cruisersforum.com/forums/f80/the-singapore-ghost-... So the apparent visual indicators might not be meaningful, but the oversupply is probably a real issue.
- iav 15y agoSituation is even worse for tankers. So many were ordered during the boom, that owners are actually paying customers to rent tanker ships. They do it because the customer would then cover the fuel cost of moving the ship to a more profitable region with greater demand.