Courtesy of www.chinahighlights.com
Baltic Dry Index (BDI), a daily average of prices to ship raw material, has dropped to a 3-year low of 862, about 200 points above the December 2008's low of 663. The drop is due to a supply glut of carriers and a slowdown in demand. Carriers that were ordered in 2007/2008 when BDI was well above 10,000 are starting to be completed by shipyards. These new fleet of carriers is expected to increase the total carrier capacity by close to 20%. Raw material demand has been slowing down due to recession in Europe and economy slowdown in China.
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CLSA Feng Sui Chart for 2012 stock market.
Baltic Dry Index (BDI), a daily average of prices to ship raw material, has dropped to a 3-year low of 862, about 200 points above the December 2008's low of 663. The drop is due to a supply glut of carriers and a slowdown in demand. Carriers that were ordered in 2007/2008 when BDI was well above 10,000 are starting to be completed by shipyards. These new fleet of carriers is expected to increase the total carrier capacity by close to 20%. Raw material demand has been slowing down due to recession in Europe and economy slowdown in China.
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