The Baltic Dry Index has fallen by more than 60 percent in the last 3 months, headed for a test of its 2008 low at 600. The index reflects bulk international shipping rates and is dominated by Capesize iron ore and coal shipments to China. Its fall coincides with a 23 percent drop in iron ore spot prices over the last quarter of 2011. Falling demand for raw materials from China warns that economic activity is slowing rapidly and there may not be a soft landing.
Australia and other resource-rich economies will need to brace themselves for a sharp fall in exports over the year ahead.
The Harper Petersen Index, for container shipping, shows a similar trend
http://www.harperpetersen.com/harpex/harpexRH.do?timePeriod=Years5&&dataType=Harpex&floatLeft=None&floatRight=None
Of course, we here in Australia don’t have to worry too much about these facts, as “Australia is better positioned than most other countries to weather any financial storms” according to Treasurer Wayne Swann. Also Reserve Bank Govenor Glenn Stevens (I believe it was) has informed us, from on high, that we are in a mining boom that will last decades.
Gee, we really are the lucky country.
“Gee, we really are the lucky country.”
The Greeks were probably saying the same thing 10 years ago.
Those guys post a nice chart of the stock shifted in HK port sometimes :
http://www.pa-international.com.au/index.php?option=com_content&view=article&id=116&Itemid=166
I think they post it monthly….