Saturday, June 2

Baltic Dry Index

Over the past two weeks, the Baltic Dry Index has been heading south at a fast rate of knots. This is not a good sign for Australia's commodity-based economy.

According to Wikipedia, the index provides an assessment of the price of moving the major raw materials by sea. Taking in 23 shipping routes measured on a time charter basis, the index covers Handysize, Supramax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain. The movement in the index immediately prior to and at the commencement of the Great Recession (aka GFC) was substantial.

No comments:

Post a Comment