"There is a growing chorus of analyst voices calling for an economic collapse in China. This is based in part on how poorly Chinese stocks have done this year, and it sets up all sorts of worries about what an economic slowdown in China might do to prices of commodities, and to other world financial markets.
I have a different view, and it is based on the comparison we see in this week’s chart. The Baltic Dry Index (Source: bloomberg.com BDIY:IND) is an index of dry shipping lease rates. In other words, it reflects how much it costs to rent a freighter for hauling non-liquid stuff. The Baltic Exchange also tracks lease rates on oil tankers, and on specialized ships like Panamax ships designed to transit the Panama Canal, and Capesize ships that are too big to fit through the Suez Canal and which thus must go around Cape Horn. The Baltic Dry Index includes pricing for Handymax, Supramax, Panamax, and Capesize dry bulk containers..."
at http://pragcap.com/baltic-dry-disputes-china-collapse
I have a different view, and it is based on the comparison we see in this week’s chart. The Baltic Dry Index (Source: bloomberg.com BDIY:IND) is an index of dry shipping lease rates. In other words, it reflects how much it costs to rent a freighter for hauling non-liquid stuff. The Baltic Exchange also tracks lease rates on oil tankers, and on specialized ships like Panamax ships designed to transit the Panama Canal, and Capesize ships that are too big to fit through the Suez Canal and which thus must go around Cape Horn. The Baltic Dry Index includes pricing for Handymax, Supramax, Panamax, and Capesize dry bulk containers..."
at http://pragcap.com/baltic-dry-disputes-china-collapse
