Negative shipping rates
Negative shipping rates

Interesting post on Zerohedge:

Shipping Rates Go… Negative

Following the endless collapse in the Baltic Dry, it was only a matter of time before the shipping industry one-upped the Chairsatan, and was the first to introduce, dum dum dum, negative rates. That’s right: you are now paid to hire a ship. Via Bloomberg:

  • GLENCORE HIRES SHIP AT MINUS $2,000 A DAY, GMI SAYS
  • GMI TO CONTRIBUTE $2,000 A DAY TO GLENCORE’S FUEL COSTS
  • GLOBAL MARITIME’S U.K. MD STEVE RODLEY CONFIRMS DEAL BY PHONE

Why is this happening? Perhaps because ships have to be kept seaworthy and in motion or else they become scrappage in as little time as 3 months. Think sharks. Needless to say, this will play havoc with shipping company (and affiliated entities’) liquidity, as the biggest default wave in the history of the industry is about to be unleashed and tens if not hundreds of billions of European secured loans are about to be “impaired.

Comments to the post point out that container charges may be moving the other way. Also that it can make economic sense to run a trip at a loss if you would otherwise have to bear the full cost of relocating the ship for its next cargo. The Baltic Dry Index (BDI) bounces around a bit. It is affected by supply as well as demand factors. The lag between commissioning a ship and it entering service means the price gyrations can be extreme. But it’s hard to interpret this as indicating anything other than a global slowdown, one of particular interest to Australia:

Baltic Dry Index plunge signals a major drop in economic activity

Since bulk dry cargo ships carry commodities used in semifinished products and industrial goods like cement and (coal-generated) power, the BDI is a forecasting tool of future economic activity. Presently, because most primary industrial production is centred in Asia, especially China, so most bulk dry cargo shipping criss-crosses the Pacific. Thus, the current low BDI indicates a major and sudden drop in industrial production in Asia, chiefly in China, down to one of its lowest point, about a tenth of what it was in 2008.

As with all indicators, the raw numbers bounce around a bit. But the magnitude of the decline and the levels it has reached are not good news for the economy, shipping lines or those invested in them.

Baltic Dry Index Rises for First Time in Eight Weeks in London

“With rates near or below cash break-even for every vessel class we’re starting to see more ships anchoring and refusing to trade,” Boydon wrote. “We wouldn’t be surprised to see earnings find some sort of bottom at these levels, which of course doesn’t necessarily imply things will rebound any time soon.” The index declined as much as 63 percent this year and 66 percent since Dec. 12 amid a downturn in demand for the fleet of more than 8,900 dry bulk vessels, which has expanded by a record for two consecutive years. Its close of 647 points on Feb. 3 was the lowest since August 1986, exchange data show. The index peaked at 11,793 on May 20, 2008. The number of vessels hired in January and December declined to 749, 18 percent lower than the corresponding period 12 months earlier, according to Boyden, citing figures from Clarkson Plc, the world’s largest shipbroker.

It is really not a good time for Bernanke to be forcing older Americans into risky assets.

The decline also suggest the next move of the Reserve Bank of Australia’s Commodity index will be down rather than up:

International developments will have a greater than normal influence on domestic politics in Australia and elsewhere. Although in many ways it always has had more influence than is generally accepted. Australia’s left has long tried to repeat the mistakes of post-war Western Europe, something it shares with much of the American left. But thanks to the Howard government Australia’s left are forced to do so at a time when the disastrous effects of their pet policies on Europe are manifestly obvious.

Voters are unhappy at losing money and services so the dollars can be given to “green” corporate bludgers and vested interests. Nor are they happy to accept large numbers of faux refugees who drain welfare services and strain tight budgets. It would have all been so much easier 15 years ago. If only Howard had not been elected.  I suspect this explains much of their antipathy toward him.



44 Comments
  1. 670261 621737As I internet internet site possessor I believe the content material matter here is rattling magnificent , appreciate it for your hard function. You must maintain it up forever! Very best of luck. 590264

  2. 323462 246571Right after examine a couple of with the weblog posts on your internet web site now, and I actually like your manner of blogging. I bookmarked it to my bookmark site record and will probably be checking back soon. Pls take a appear at my internet page as properly and let me know what you feel. 693897

  3. 877783 874519Spot lets start on this write-up, I seriously believe this incredible website requirements a lot much more consideration. Ill much more likely once once more to read an excellent deal much more, numerous thanks that info. 186866

  4. Original Cialis [url=http://viagra.rxbill7.com/viagra-alternative.php]Viagra Alternative[/url] Acheter Du Propecia Franceachat De Propecia En Espagne Propecia Alquiler [url=http://doxycycline.mdsmeds.com/price-of-vibramycin.php]Price Of Vibramycin[/url] Online Generic Cialis Review Salzarex Vardenafil [url=http://fast-isotretinoin.com]accutane[/url] Cialis Generique Fiable Amoxicillin Causes Yeast Infection [url=http://inderal.ccrpdc.com/buy-propranolol.php]Buy Propranolol[/url] Is Levitra Safe Viagra Prix Pharmacie Forum [url=http://priligy.usamedz.com/dapoxetina-priligy-comprar.php]Dapoxetina Priligy Comprar[/url] Acheter Cialis Meilleur Prix Fedex Worldwide Dutasteride 0.5mg Medication Real Low Price Virginia [url=http://lasix.mdsmeds.com/buy-lasix-online.php]Buy Lasix Online[/url] Prezzo Viagra Pfizer Achat Cialis Site Securise [url=http://kamagra.usamedz.com/kamagra-sildenafil.php]Kamagra Sildenafil[/url] Where To Order Amoxicilina Bacterial Infections In Internet Trazodone 100mg [url=http://kamagra.ccrpdc.com/how-to-get-kamagra.php]How To Get Kamagra[/url] Prix Cialis En Belgique Cialis Euroclinix [url=http://antabuse.mdsmeds.com/get-antabuse-online.php]Get Antabuse Online[/url] Order levitra from canada Forum Cialis Achat Internet [url=http://strattera.rxbill7.com/atomoxetine-generic.php]Atomoxetine Generic[/url] Where To Buy Silagra Acheter Pilule Propecia [url=http://levitra.rxbill7.com/buy-levitra-now.php]Buy Levitra Now[/url] Site Pour Acheter Kamagra Erectile Drugs Sale [url=http://clomid.mdsmeds.com/achat-clomid-pas-cher.php]Achat Clomid Pas Cher[/url] Cialis Precios Buy Viagra Canadian No Prescription [url=http://levitra.mdsmeds.com/levitra-no-rx.php]Levitra No Rx[/url] Pedidos De Viagra Canadian Pharmacy Clonidine [url=http://prozac.usamedz.com/how-to-buy-prozac.php]How To Buy Prozac[/url] Usage Of Cephalexin Discount Elocon Best Website [url=http://kamagra.ccrpdc.com/cheap-kamagra-uk.php]Cheap Kamagra Uk[/url] Accessrx Prescription Drugs buy Female Viagra [url=http://viagra.mdsmeds.com/cheap-viagra-usa.php]Cheap Viagra Usa[/url] Uricon With Out Precritpion For Dogs Buy Pcn Without Prescription [url=http://cytotec.rxbill7.com/buy-cytotec-generic.php]Buy Cytotec Generic[/url] Cheap No Perscription Viagra Cost Of Priligy [url=http://accutane.rxbill7.com/buy-accutane-online-canada.php]Buy Accutane Online Canada[/url] Buy Generic Secure Ordering Bentyl In Germany Worldwide Schlecker Levitra [url=http://viagra.ccrpdc.com/cheap-viagra-pills.php]Cheap Viagra Pills[/url] Priligy Venta En Ecuador Disfunzione Erettile Cialis Viagra [url=http://inderal.ccrpdc.com/order-inderal-pills.php]Order Inderal Pills[/url] Viagra Vraiment Efficace Cheap Viagra Pe [url=http://nolvadex.mdsmeds.com/nolvadex-buy-online.php]Nolvadex Buy Online[/url] Us Fast Shipping Meds Clomicalm Onit At Canadian Pharm [url=http://zoloft.usamedz.com/sertralina-generic.php]Sertralina Generic[/url] Viagra Prezzo Svizzera Discount Worldwide On Line Elocon Medicine Secure Ordering [url=http://amoxil.mdsmeds.com/how-to-order-amoxil.php]How To Order Amoxil[/url] Over Counter Viagra Alternative Diflucan Online Florida [url=http://prozac.rxbill7.com/where-to-order-prozac.php]Where To Order Prozac[/url] Stendra Ed

  5. 192095 511846As I site owner I feel the articles here is rattling superb , thanks for your efforts. 818396

  6. 485962 298782I believe this web site has some rattling wonderful info for everyone : D. 7869

  7. 966332 132885I discovered your blog internet website on bing and appearance several of your early posts. Preserve up the extremely great operate. I just now additional the RSS feed to my MSN News Reader. Seeking toward reading far much more on your part down the road! 434969

  8. 762150 677650really good post, i certainly love this site, keep on it 71550

  9. 156369 403910Attractive portion of content. I merely stumbled upon your weblog and in accession capital to assert that I get in fact loved account your weblog posts. Anyway I will probably be subscribing to your augment and even I success you get admission to constantly rapidly. 281418

  10. 663947 436879Id need to have to consult you here. Which isnt some thing Which i do! I enjoy reading a post that can make men and women feel. Also, appreciate your permitting me to comment! 440520

  11. 402296 660There is noticeably a bundle to realize about this. I assume you produced various good points in attributes also. 223584

  12. 746756 716574My California Weight Loss diet invariably is an cost effective and versatile staying on your diet tv show created for individuals who discover themselves planning to drop extra pounds and furthermore ultimately keep a a lot healthier habits. la weight loss 521202

  13. I like the helpful information you supply on your articles. I’ll bookmark your weblog and test once more right here regularly. I am slightly sure I will be informed lots of new stuff proper here! Good luck for the following!

  14. Great article and right to the point. I am not sure if this is in fact the best place to ask but do you people have any ideea where to employ some professional writers? Thanks in advance 🙂

  15. Hey very cool site!! Guy .. Beautiful .. Amazing .. I will bookmark your web site and take the feeds also…I’m satisfied to search out numerous helpful info right here in the submit, we need develop extra techniques on this regard, thanks for sharing. . . . . .

  16. Wow that was odd. I just wrote an very long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Anyways, just wanted to say superb blog!

  17. I do agree with all the ideas you have presented in your post. They’re very convincing and will certainly work. Still, the posts are too short for newbies. Could you please extend them a little from next time? Thanks for the post.

  18. Your house is valueble for me. Thanks!…

  19. What i don’t understood is actually how you are not really much more well-liked than you might be right now. You are very intelligent. You realize therefore considerably relating to this subject, produced me personally consider it from numerous varied angles. Its like women and men aren’t fascinated unless it’s one thing to accomplish with Lady gaga! Your own stuffs great. Always maintain it up!

  20. After research a number of of the weblog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website listing and will probably be checking back soon. Pls take a look at my website online as effectively and let me know what you think.

  21. Sexual Risks Propecia [url=http://zoloft.ccrpdc.com/zoloft-online-cs.php]Zoloft Online Cs[/url] Viagra En Ligne Moins Cher Zithromax Abscess Tooth [url=http://inderal.rxbill7.com/buy-propranolol-cheap.php]Buy Propranolol Cheap[/url] Amoxicillin Sideeffects Cialis Commande Rapide [url=http://strattera.ccrpdc.com/generic-strattera-online.php]Generic Strattera Online[/url] Cialis Quand Le Prendre Propecia Working Hair Loss Treatment [url=http://zithromax.usamedz.com/map.php]Zithromax Dose[/url] Cialis Indicaciones Propecia Bivirkninger [url=http://accutane.usamedz.com/accutane-drug.php]Accutane Drug[/url] Similares Levitra Acheter Cialis Andorre [url=http://propecia.rxbill7.com/natural-propecia.php]Natural Propecia[/url] Amoxicillin For Dogs For Sale Kamagra Portugal [url=http://zoloft.rxbill7.com/zoloft-free-trial.php]Zoloft Free Trial[/url] Pharmacy Rx World Cytotec In South Africa [url=http://viagra.rxbill7.com/viagra-cost.php]Viagra Cost[/url] Amoxicillin Insomnia Children Order Non Perscription Levlen [url=http://inderal.rxbill7.com/cheap-propranolol-online.php]Cheap Propranolol Online[/url] Letrozole Low Cost Drugs From Canada [url=http://prednisone.mdsmeds.com/deltasone-online-prices.php]Deltasone Online Prices[/url] Triam Hctz 75 50 Mg Cephalexin Side Effects In Dogs [url=http://zithromax.mdsmeds.com/order-zithromax-online.php]Order Zithromax Online[/url] Cialis Y Glaucoma Viagra Comment Ca Marche [url=http://priligy.mdsmeds.com/priligy-30mg-price.php]Priligy 30mg Price[/url] Definir Priligy

  22. There is clearly a bunch to know about this. I believe you made various nice points in features also.

  23. I have been examinating out some of your stories and i can claim nice stuff. I will surely bookmark your site.

  24. You really make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and very broad for me. I’m looking forward for your next post, I will try to get the hang of it!

  25. you’ve got an ideal weblog here! would you prefer to make some invite posts on my blog?

  26. I like the helpful info you provide in your articles. I’ll bookmark your blog and check again here frequently. I am quite sure I’ll learn many new stuff right here! Good luck for the next!

  27. Sweet blog! I found it while surfing around on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Cheers

  28. 85351 620959I think your suggestion would be helpful for me. I will let you know if its work for me too. Thank you for sharing this beautiful articles. thanks a lot 821838

  29. 92923 62693Some truly very good content material on this internet internet site , appreciate it for contribution. 105851

  30. 311124 367273Ive been absent for a whilst, but now I remember why I used to adore this web site. Thank you, I will try and check back much more often. How frequently you update your website? 786142

  31. 550386 139494Correct humans speeches should seat as nicely as memorialize around the groom and bride. Beginer sound system around rowdy locations ought to always not forget currently the glowing leadership of a speaking, which is ones boat. greatest man speeches brother 4363

  32. This website online can be a stroll-by for all of the information you needed about this and didn’t know who to ask. Glimpse right here, and also you’ll undoubtedly uncover it.

  33. Hi there, just became aware of your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I’ll be grateful if you continue this in future. Many people will be benefited from your writing. Cheers!

  34. This blog was… how do I say it? Relevant!!

    Finally I’ve found something that helped me. Many thanks!

  35. Hi there to every , because I am truly keen of reading this blog’s
    post to be updated daily. It carries nice information.

    Stop by my site :: garcinia cambogia ultra 1300

  36. 204949 2654Hey, you used to write great, but the last couple of posts have been kinda boring I miss your tremendous writings. Past couple of posts are just a bit out of track! come on! 595297

  37. Thank you for some other fantastic post. The place else may anyone get that kind of information in such an ideal manner of writing? I have a presentation subsequent week, and I am on the look for such info.

  38. Right now it seems like Expression Engine is the best blogging platform out there right now. (from what I’ve read) Is that what you’re using on your blog?

  39. Currently it looks like WordPress is the best blogging platform available right now. (from what I’ve read) Is that what you are using on your blog?

  40. I do love the way you have presented this particular issue plus it does indeed give me personally a lot of fodder for consideration. However, because of just what I have witnessed, I really hope when the actual commentary pile on that folks remain on point and in no way start on a tirade associated with the news of the day. Yet, thank you for this superb point and though I do not necessarily go along with it in totality, I value the standpoint.

  41. I found your blog internet site on google and check some of one’s early posts. Continue to maintain up the really great operate. I just extra up your RSS feed to my MSN News Reader. Searching for forward to reading a lot more from you later on!

  42. Useful info. Fortunate me I found your site by chance, and I’m shocked why this accident didn’t happened in advance! I bookmarked it.

  43. Very nice post. I just stumbled upon your blog and wished to say that I have truly enjoyed surfing around your blog posts. In any case I’ll be subscribing to your rss feed and I hope you write again soon!

  44. Very nice post. I just stumbled upon your blog and wanted to say that I’ve really enjoyed browsing your blog posts. In any case I’ll be subscribing to your rss feed and I hope you write again soon!