Economic Alert: Dry Bulk Shipping Rates Collapse 33%

In another concerning economic indicator, the Baltic Exchange’s dry bulk index has dropped 33% in just the last month. This index sets the price for shipping rates of dry bulk commodities around the world.

Considering the epic China stimulus over the last month and the solid economic data in the United States, this begs the question of why shipping rates are collapsing?

Historically, shipping rates falling can signal a global slowdown in economic growth or even a global recession. This should be monitored closely.

One more thing to note, the Federal Reserve cut 50 basis points and instead of rates falling, they have shot up over 50 basis points. In other words, the outcome has been more like a rate increase than cut. Rising rates (directly in the face of the Federal Reserve), tends to slow the economy. This may be one reason try bulk shipping rates are falling.

Monitor this closely in the coming weeks and months.

Get the edge Wall Street doesn't want you to have. Verified Investing provides institutional-grade technical analysis, empowering you to make informed decisions based on probability and data, not hype.