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HOLA441
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http://www.zerohedge.com/news/2016-09-02/ripple-effect-could-be-tremendous-retailers-demand-government-bailout-after-hanjin-c

When we first reported about the imminent paralysis of an unknown number of global supply chains and a potential shock in worldwide trade as a result of the historic bankruptcy of Hanjing Shipping, one of the world's largest container shipping companies which handles 8% of Trans-Pacific trade volume for the US market, we concluded that "the global implications from the bankruptcy are unknown: if, as expected, the company's ships remain "frozen" and inaccessible for weeks if not months, the impact on global supply chains will be devastating, potentially resulting in a cascading waterfall effect, whose impact on global economies could be severe as a result of the worldwide logistics chaos. The good news is that both economists and corporations around the globe, both those impacted and others, will now have yet another excuse on which to blame the "unexpected" slowdown in both profits and economic growth in the third quarter."

However, not even this extreme forecast captured what would happen just 48 hours later, when as the WSJ reported overnight, retailers have gone far beyond simply blaming the Hanjing bankruptcy for their upcoming woes: they are petitioning for a government bailout, or as the WSJ put it, they are "bracing for a blow as they stock up for the crucial holiday sales season, asked the government to step in and help resolve a growing crisis."

Or, as America's banks would call it, "get bailed out." And, in taking a page right out of the 2008 bank bailout, the doom and gloom scenarios emerge:

While the situation is still developing, the prospect of harm is significant and apparent,” Sandra Kennedy, president of the Retail Industry Leaders Association, wrote in a letter to the Department of Commerce and the Federal Maritime Commission. Hanjin’s recent bankruptcy filing “presents an enormous challenge to U.S. shippers,” she said, and “could have a substantial impact on consumers and the economy at large.”

Hasn't taken long for the call of bailout to come...

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HOLA444

Strange fallout from a low BDI level. - ship company goes bust, crew are stranded.

_91198369_14374789_934240526722635_85547

What they didn't know though was that Hanjin Shipping had filed for bankruptcy protection - crumbling under the weight of a staggering $5.4bn (£4.1bn) worth of debt.

"At about 9:20 in the evening, an attorney came on board with a sheriff," Captain Kwondo Moon says as he recalls the night. The ship got arrested, seized by creditors who were hoping to get at least some money back.

"No-one told me about this beforehand," he goes on, struggling to hide his emotions. The captain was completely left in the dark about the state of affairs.

The 36-year-old was then ordered to go out to an anchorage position and wait. This was two weeks ago - and since then there's been little more information given to them about the ship's - and their own personal - future.

More:

http://www.bbc.co.uk/news/business-37335614

BDI updated chart

1.png

Edited by 200p
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It could be the birth pangs of a new cycle - it's interesting, because we are seeing capital make their "chess" moves after the election. For example Avesco received a take over bid and the stock price doubled. And Nvidia leap by 30%. So there is also stake building. Whether these were the correct moves remains to be seen in a sea of bearishness.

It was like capital was champing at the bit-

If Hilary won - we buy

If Donald won - let's see if the stock market crashes, if not we buy.

 

This is the Shanghai Composite - a new cycle beckons?

sch.gif

 

I see that Donald Trump's grand daughter read a poem in perfect Mandarin - which echoes renegade investment biker, Jim Rogers moving to Shanghai, and ensuring his daughter could speak fluent Mandarin. A bull in China all over again? Let me dust off the cobwebs from those BRIC definitions again.

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Prices have started to move ahead.A lot of the shipping companies (the US ones) move oil and gas and Trump pushing to expand the sector will see a lot more exports.There is also talk of some more mergers.Iv just invested in the sector myself last week through a little known exchange traded fund the Guggenheim Shipping ETF ticker of SEA .There could be more pain to come,but at these levels im happy to tuck away for however long it takes to recover.

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"The DryShips Market" - What Comes Next Is Anyone's Guess

"What comes next? Again, nobody knows for sure. All I know is the clock is now ticking into December 14th, that is irrefutable. That, and believing the “alarm” doesn’t go off before, and is totally under the Fed’s purview, is the only thing which everyone seems complacent in. Which to my mind – is just plain nuts."

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16 hours ago, the_duke_of_hazzard said:

Looks like the life just left it again.

Although it's not plumbing the depths of this time last year.

As posters have said on this thread, Baltic Dry measures a couple of things: the amount of world trade, and the capacity of shipping. However, capacity is influenced not just by the number of available ships, but also by the oil price, since lower oil makes it economic to move the ships faster. The number of active ships is also determined by trade and credit conditions from several years ago, since they have long service lives and take a while to build.

There is a tendency here sometimes to view BD simply as a measure of the health of world trade, and therefore a real-time indicator of a recession. It would be interesting if anyone has tried to model the competing influences, by combining other indicators, to try to pull out such a measure.

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