It's Probably Nothing

So call me ignerent lol. but how does this affect me? i live in alberter,why should i care or worry?

I was interested when the European Central Bank recently reduced its deposit interest rate to a negative number. Consensus was, the crash is coming.

For what its worth. I work for a cargo Airline and our load factors are excellent. Low oil prices also helping our bottom line.

Such a large decline is cause to be alert but a factor (perhaps a major factor) in the decline could be lower demand for coal.

Ok so a ressession is coming , big whoop....(im talking like an idiot on purpose.) how does that affect a guy like me? i have guns,ammo,food storages, my mortgage is almost done,All viehicles are paid off, and i own some silver and some gold , and i have lots of money in clarington t-10, and i own avacation property on lake kucanusa , i have rrsp's as well ,and some stocks.

How are things looking for me?

http://www.shz-log.com/en/detail_246.html

Maersk Line: excess capacity will continue for 5 years

http://www.wsj.com/articles/SB10001424127887323798104578454812392168852

However, Maersk Line is planning to stay ahead of its rivals amid the glut in the sector by investing in huge new ships to ensure it has the biggest, most efficient fleet at sea.

Maersk Line has kicked off a new "arms race," ordering mega-containerships in a $3.8 billion order for 20 so-called triple-E vessels. The ships can carry 18,000 20-foot containers, 2,000 more than the world's current biggest containership, the Marco Polo, owned by France's family-owned CMA CGM. Maersk Line says the ships will consume approximately 35% less fuel per container than the standard 13,100-capacity container vessels being delivered to other shipping lines in the next few years.

Unfortunately for near-term returns at Maersk and its rivals, other shippers are following suit.

China Shipping Container Lines Co. Ltd., the unprofitable Hong Kong-listed unit of Chinese state-owned enterprise China Shipping (Group) Co., has said it is in the market for five triple-E containerships. It is currently taking bids from South Korean shipyards.

"In three to four years major shippers will operate Europe-Asia with ships of 14,000 and above," said SeaIntel's Mr. Jensen. "Those who don't have these ships won't be able to compete."

No small wonder the Baltic Dry Index has fallen as the shippers are having a capacity and pricing war. Not necessarily indicative of a recession next week.
The devil is always in the details...

Cheers

Hans Rupprecht, Commander in Chief

1st Saint Nicolaas Army
Army Group 'True North'

Hans; Not simple just an indicator. BDI is a reflection of both demand and supply. Since the supply of shipping can be somewhat inelastic due to the construction time. Also the size and type of vessels available also reflected in BDI. It is fairly complex.

@Hans: I admit I'm not really knowledgeable about this stuff but my understanding is that the Baltic Dry Index is only bulk carriers, excluding liquids which probably have their own index, and excluding containerized freight which also have their own index no doubt.

My understanding of bulk is things like ore, coal, grains, etc. These are generally inputs for industry. Containerized freight is finished products, outputs for industry. Clearly they should be related ......

Please correct me if I'm wrong.