The Baltic Dry exchange Index (BDI)...is a measure that tracks the worlds 26 shipping lanes, the costs involved, amount of cargo moved , etc. From its high of 11,793 on May 20, 2008...the exchange collapsed 94% by December5, 2008, to 663. The BDI has since recoved a bit- it was 1,316 on Febuary 4,2009.
What this means, in part: Freight or cargo shipping on the high seas has almost collapsed-if the index falls below about 600, all freight will cease to move, as the cost of transport will make shipping prohibitively expensive- our store shelves will go empty. The only reason store shelves are not empty already: the price of oil fell.
I have an inside source who has informed me that over -the- road or highway truck freight has declined in Virginia at least 25% in the last six months (?)
When the California, Chinese, Australian, Texan, Argentine, and Floridian droughts are factored in this summer, the situation will get very tough, food supply and costwise.
What this means, in part: Freight or cargo shipping on the high seas has almost collapsed-if the index falls below about 600, all freight will cease to move, as the cost of transport will make shipping prohibitively expensive- our store shelves will go empty. The only reason store shelves are not empty already: the price of oil fell.
I have an inside source who has informed me that over -the- road or highway truck freight has declined in Virginia at least 25% in the last six months (?)
When the California, Chinese, Australian, Texan, Argentine, and Floridian droughts are factored in this summer, the situation will get very tough, food supply and costwise.
posted by Zero at 4:35 PM
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