The Baltic Dry Index tracks the cost of shipping major raw materials (iron ore, coal, grain, cement, copper, sand and gravel, fertilizer and even plastic granules). Or, more simply, it tracks the precursors of economic output. As such, the Index provides a measurement of the volume of global trade at the earliest possible stage. The Index is down 48.4% in the last month, and 54.4% in the last three months.
The Baltic Dry Index, an unmanipulated piece of raw goods shipping data, is at the worst levels I have ever seen. There is no demand for raw shipping, yet prices continue to rise. Higher commodity prices are no longer driven by lack of supply. My head says just look into the increasing cpi inflation data.
Almost all the global stock markets are in the bullish mood especially Indian markets. But on the negative side the Baltic Dry Index, which tracks sea freight rates to ship dry commodities, fell for the 30th straight day through Wednesday to its lowest level since May 2009.