As global shipping costs plunge

Global shipping prices are dropping while commodities and inflation expectations remain aloft When viewed in the context of history, it’s not something that makes sense right  now. Global shipping costs – with commodities like crude oil a major component of the shipped product – are dropping, which implies demand has dropped. Yet commodities and inflation expectations really have not caught on yet, other than a … Continue reading As global shipping costs plunge

indicators

As FOMC rides off into the sunset…

Baltic Dry Index (BDI) continues to flash negative As FOMC and related noise fade away we are left as we were before the negative market action that attended the event everybody already knew was coming (taper and Fed Funds rate hike talk). Back on November 11th we noted that the BDI was tanking even as the ‘inflation expectations’ ETF (RINF) was making a new (and … Continue reading As FOMC rides off into the sunset…

Global Shipping, Copper LME Stocks & Copper Price

An NFTRH subscriber kindly sent me this article on surging global shipping costs. Shipping’s great fuel switch is starting to drive up freight costs For reference, here’s the NFTRH chart of the Baltic Dry Index utterly failing to have positive leadership effect on commodities, especially. Something has seemed disconnected as front loading pressure due to the trade war would have seemingly been worked through and … Continue reading Global Shipping, Copper LME Stocks & Copper Price

Another Moonshot… BDI (and its Relationship to Gold)

The Baltic Dry Index of global shipping costs has been on a tear. Where once it had been getting a lot of cross-talk due to the trade war, my view is that now it should have settled and BDI would be presenting a more accurate view of global shipping costs and by extension demand for goods, including or even especially commodities. Here is the NFTRH … Continue reading Another Moonshot… BDI (and its Relationship to Gold)

Baltic Dry Index Caves In

We follow this one each week in NFTRH’s Global Market Internals segment. When I was noting the curious positive price divergence (most recent spike) by this shipping cost index to global stocks and commodities in Q4 an astute subscriber advised that this was likely due to shippers front-loading their shipments before trade tariffs would kick in. So we expected January to be bad as the … Continue reading Baltic Dry Index Caves In

Baltic Dry Index a Positive Signal for Commodities?

My resident chart maniac, subscriber Joe, sent a chart of an international container shipping company with a hell of an interesting daily chart pattern (I am going to consider it for an NFTRH+ highlight with a hat tip to Joe, after I get a bit more familiar with it). As an extension of that I went looking for the Baltic Dry Index (BDI) for the … Continue reading Baltic Dry Index a Positive Signal for Commodities?