The Baltic Dry Index (BDI) rose to fame in the mid-2000s as a leading indicator of the global economy. If the BDI went up, industrial production was set to increase; if it went down, vice versa.
The BDI lost its luster as a macro bellwether during the decade after the financial crisis, as the index became overwhelmingly driven by shipping oversupply, not cargo demand.
Is it time once again to view the BDI as a signal of global industrial demand? If so, it’s looking scary.
Capesize rates crash
https://www.freightwaves.com/news/capesize-shipping-rates-sink-21-in-a-single-day