And while the index topped in early September following a brief and uninspired climb, it has since been a one way downward pointing slope. Whether the BDIY is a leading indicator to anything is debatable: some
believe it is a completely irrelevant indicator. Others disagree. A very
strong case for the former camp was made last week by Nordea which
demonstrated,In this Chart:
the average speed of its vessel fleet. One thing is certain: for whatever reason, demand for trans-Pacific cargo shipments is once again plunging.
Nordea's Comments:We have understood that Chinese cargo ships have been told to proceed at 'wind speed', because of a collapse in US import demand - this is partly visible in the activity amongst Long Beaches shoremen - hence, is this the final proof that the inventory rebuild that drove the
recovery in the autumn is OVER? Figure 1 shows the average speed
amongst bulk carriers! Bulls - Watch Out!
