Wednesday, June 23, 2010
The Harpex index of container shipping rates in the N. Atlantic has almost doubled so far this year, after having plumbed unimaginable lows. That's a V-shaped recovery in my book, even though rates have yet to regain their pre-crisis levels, and at the very least it severely weakens the bear case for European growth.
Update: At the request of a reader, here is a chart of the Baltic Dry Index, which measures shipping costs for bulk commodities in the Pacific. The index is enormously volatile, and has dropped 40% in past month. But as the chart shows, it is still up significantly from its end-2008 lows. As recently as 2001, today's levels would have been considered almost impossibly high. I think today's reading is consistent with an ongoing global economic recovery.
Posted by Scott Grannis at 9:04 AM