Is a Leading Indicator of Economic Activity Drying-Up?

People are afraid abandoned 'zombie ships' are an early sign of global economic collapse.


160130 Abandoned Ships Image Credit: Sometimes Interesting


If you are looking for insight into global supply and demand trends, the Baltic Dry Index is one of the purest leading indicators of economic activity. It offers a real-time glimpse at global raw material and infrastructure demand, as well as the supply of ships available to move this type of cargo.

Unfortunately, it is sinking faster than a ship.


160130 Baltic Dry Index Sinking


The low is troubling because this Index is often interpreted as a reliable indicator of demand.

The Index moved higher from 2003 to 2008. Since then, we have seen a series of lower highs and lower lows (in other words, it has been trending downwards since then).


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