BDI Baltic Dry Index Weekly Chart Teasing All-Time Record Lows in Shipping Rates

The Baltic Dry Index drops like a rock in the pond out back. The Baltic is the freight index for shipping dry goods such as coal, iron ore, grains, steel, etc... When a world economy is booming, the ships are busy 24/7 hauling dry goods around the world and shipping rates climb higher if you want to play the game.

Then weak times hit, such as a pandemic, or a recession, or both, and wars, and rumors of wars, and the freight index is in collapse. Prices are dropping as ships look for cargo. The planet expects China's economy to pick-up like gangbusters and drive the Baltic Index higher again but Dictator Xi stares back at the world opining, "Who, me?"

The current lows in the Baltic, and in 2020, 2016 and 2015 are the all-time record lows in the freight index. Interestingly, the lows in the Baltic typically correspond to lows in the stock market but this typically occurs with a plus and minus of a few weeks on each side.

Note the V-shaped bottoms where prices hit the low then explode higher as demand picks up and economic conditions improve. 2015, however, stuttered sideways for a while.

Keystone calls the May 2015 top in the US stock market the last legitimate top in the US stock market. Everything that came after is due to Federal Reserve and other central banker monetary stimulus, and domestic US fiscal stimulus, and is generally, phony-baloney artificial pumping of asset prices. There is likely a date with SPX 2200-ish over the next year or two to pay respect to this prior May 2015 top. In 2015, the stock market stuttered sideways for a few months as the Baltic Dry Index moved sideways.

The collapsing Baltic Dry Index reflects a lackluster global economy. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Sunday, 2/19/23: The BDI drops to 538 to end last week. Hey pal, can I haul some cargo for you? I'll give you a good deal. Keystone does not get invited to any parties because he talks about the Baltic Dry Index.

Note Added Ash Wednesday Morning, 2/22/23: The BDI drops to 530 and is now trying to recover at 594. Get your cargo ships here, folks, step right up, cargo ships, get your cargo ships here folks, on sale today, step right up.......