Wednesday, February 4, 2009
The Baltic shipping indices are really showing signs of life. After today's increase, the Dry index has just about doubled from its early December low, and the Capesize index is up 187% over the same period. This is not a random wiggle, this looks like the beginning of a serious recovery. Shipping activity is coming back to life. Banks must be issuing letters of credit, and someone out there (with China figuring prominently in the list, no doubt) is stepping up their purchases of raw materials.
UPDATE: As of Feb. 5th, the Baltic Dry is up 125% from its lows, while the Capesize is up 229%. Things are heating up out there!
Posted by Scott Grannis at 4:00 PM