

The so-called economic recovery described in a single graph. - DenisM
http://blog.altudov.com/2011/08/04/the-so-called-economic-recovery-described-in-a-single-graph/

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swiecki
I just wanted to point out the obvious to any potential readers: this is just
one indicator and does not reflect what is happening in all sectors of the
economy. Rather, it a price chart of commercial shipping services. Useful, but
definitely not the end-all be-all economic recession indicator that the author
makes it out to be.

~~~
DenisM
Not just me:

 _Because dry bulk primarily consists of materials that function as raw
material inputs to the production of intermediate or finished goods, such as
concrete, electricity, steel, and food, the index is also seen as an efficient
economic indicator of future economic growth and production. The BDI is termed
a leading economic indicator because it predicts future economic activity.[7]_

And:

 _"People don't book freighters unless they have cargo to move."_

[http://en.wikipedia.org/wiki/Baltic_Dry_Index#Why_economists...](http://en.wikipedia.org/wiki/Baltic_Dry_Index#Why_economists_and_stock_markets_read_it)

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iav
Situation is even worse for tankers. So many were ordered during the boom,
that owners are actually paying customers to rent tanker ships. They do it
because the customer would then cover the fuel cost of moving the ship to a
more profitable region with greater demand.

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mkr-hn
A lot of ships were ordered and never used due to the recession. Ship owners
are going to experience the same problem the housing market is: more supply
than can be realistically demanded. Though someone's going to figure out a way
to turn it into a bubble.

~~~
DenisM
Source? The only way too many ships being built would affect the picture that
way if those ships entered service since after mid 2008. I'd like to see a
source for that.

~~~
mkr-hn
[http://www.dailymail.co.uk/home/moslive/article-1212013/Reve...](http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-
The-ghost-fleet-recession-anchored-just-east-Singapore.html)

I remember going on Google Maps and seeing what looked like a lot of ships
docked right where they were supposed to be, but I lost the coordinates.

edit: <http://www.marinetraffic.com/ais/>

I'm looking to see if it's still there.

~~~
DenisM
Good article, well sourced. Thanks.

~~~
mkr-hn
[http://www.cruisersforum.com/forums/f80/the-singapore-
ghost-...](http://www.cruisersforum.com/forums/f80/the-singapore-ghost-
fleet-35010.html#post385926)

So the apparent visual indicators might not be meaningful, but the oversupply
is probably a real issue.

