International cargo vessels today are
all docked and anchored in most ports all over the world, and the last trips
they may have had were for the December holidays shopping spree.
As of yesterday, the most prominent
global indicator for international shipment of physical goods, the London-based
Baltic Dry Index, is in free fall.
For the last six months or so, most
cargo ships were already sailing with less than their full capacity.
The physical economy is crashing and
all the warnings that’s been relayed to you for the last four years should have
prepared you for what’s to come in the interim.
There may be a short disruption on
the supply of critical goods and services especially on areas that are fully
industrialized.
“Today, Monday, January 18 2016, the
Baltic Dry Index decreased by 4 points, reaching 369 points.
Baltic Dry Index is compiled by the
London-based Baltic Exchange and covers prices for transported cargo such as
coal, grain and iron ore. The index is based on a daily survey of agents all
over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index
hit 11,793. The lowest level ever reached was on Monday, January 18 2016, when
the index dropped to 369 points.”
Source: Hellenic Shipping News Worldwide
“The Baltic Exchange’s main sea
freight index, which tracks rates for ships carrying industrial commodities,
continued its freefall to close at a record low on Tuesday amid concerns over vessel
oversupply and global demand shortage.
The overall index, which gauges the
cost of shipping dry bulk cargoes including iron ore, cement, grain, coal and
fertiliser, fell for the 11th straight session and was down six points, or 1.63
percent, at 363 points.
The index has plunged 115 points or
around 24 percent in January.
The capesize, panamax, supramax, and
handysize indices also continued their downward spiral and touched their all
time lows on Tuesday.
The dry bulk sector has taken a
beating from the slowdown in Chinese business at a time when the sector is
struggling with huge overcapacity.
The capesize index fell 12 points, or
6.09 percent, to 185 points. Average daily earnings for capesize vessels decreased
by $68 to a new record low of $2,662.
Capesizes typically transport
150,000-tonne cargoes such as iron ore and coal and have been particularly
affected by a fall-off in coal and iron ore demand in China.
The panamax index fell 6 points to
369 points.
Average daily earnings for panamaxes,
which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes,
fell $47 to $2,952.”
This unfolding event in the physical
economy is reminiscent of the event back in the early part of 2012 when CEOs of
global banking resigned en masse.
This is one more proof that the plan
to end the Great Con Game perpetrated by the Khazarian Mafia for centuries will
be terminated this year as much as possible.
Earlier, China had instructed its
banks to stop buying US dollar and instead gradually unload its dollar
reserves. The real Red Dragon also demanded that the Yuan will be the only
currency they will accept and honor from here on, with the exception only where
sovereign currency swap agreements are in effect. This means that those
countries which don’t have such similar arrangement with China will suffer
financially unless their currencies are proven to be backed up with hard
assets.
This is a very smart move of ridding
out the imaginary wealth of Western Oligarchy, and event like this is not
something the Khazarian co-opted mainstream media would like to talk about.
More evidence of the shutdown of
international shipping from ZeroHedge,
“Nothing Is Moving,” Baltic Dry Index Crashes as
Insiders Warn International “Commerce Has Come To a Halt”
By Tyler Durden
The continued collapse of
The Baltic Dry Index remains ignored by most – besides we still have Netflix,
right? But, as Dollar Vigilante’s Jeff Berwick
details, it appears the worldwide ‘real’ economy has ground
to a halt!!
Last week, I received news from a
contact who is friends with one of the biggest billionaire shipping families in
the world. He told me they had no ships at sea right now,
because operating them meant running at a loss.
This weekend, reports are circulating
saying much the same thing: The North Atlantic has little or no cargo ships
traveling in its waters. Instead, they are anchored. Unmoving. Empty.
You can see one such report here.
According to it,
“Commerce between Europe and North
America has literally come to a halt. For the first time in known history, not
one cargo ship is in-transit in the North Atlantic between Europe and North
America. All of them (hundreds) are either anchored offshore or in-port.
NOTHING is moving.
This has never happened before. It is
a horrific economic sign; proof that commerce is literally stopped.”
We checked VesselFinder.com and
it appears to show no ships in transit anywhere in the world. We aren’t
experts on shipping, however, so if you have a better site or source
to track this apparent phenomenon, please let us know.
We also checked MarineTraffic.com, and it
seemed to show the same thing. Not a ship in transit…
If true, this would be catastrophic
for world trade. Even if it’s not true, shipping is still nearly dead in the
water according to other indices. The Baltic Dry Index, an assessment of
the price of moving major raw materials by sea, was already at record all-time
lows a month ago… and in the last month it has dropped even more, especially in
the last week. Today BDIY hit 415…
Factories aren’t buying and retailers
aren’t stocking. The ratio of inventory to sales in the US is an indicator
of this. The last time that ratio was this high was during the “great
recession” in 2008.
Hey, Ms. Yellen, what recovery? The
economy is taking on water at a rapid rate.
The storm has been building for
some time, actually. Not so long ago, there was a spate of reports that
the world’s automobile manufacturers were in trouble because cars were not
selling and shipments were backing up around the world.
ZeroHedge reported on it this way:
“In the past several years, one of
the topics covered in detail on these pages has been the surge in such gimmicks
designed to disguise lack of demand and end customer sales, used extensively by
US automotive manufacturers, better known as “channel stuffing”, of which
General Motors is particularly guilty and whose inventory at dealer lots just
hit a new record high.”
Here is a photo of unsold cars in the
United Kingdom from that article.
The world’s economy seems in serious
trouble. You can’t print your way to prosperity. All you are doing is hollowing
out your economy. Draining it. And sooner or later it’s empty and you have to
start over after a good deal of crisis and chaos.
It’s no coincidence that China
is struggling desperately to contain a stock implosion. Reportedly, banks
have been told they are forbidden to buy US dollars and numerous Chinese
billionaires have gone missing. And the markets have just opened on Monday
and are again deeply in the red.
Here at The Dollar Vigilante we’ve
specialized in explaining the reality of the global faux-economy and why it’s
important that you not believe mainstream media lies.
In the meantime, keep your eye on
this shipping story! If it is true and worldwide shipping is disastrously
foundering, it’ll only be a matter of days before grocery store shelves will
reflect that with increasingly bare shelves.
Are people upset now? Just wait.
Interruptions in goods and services, most critically food, almost happened in
2008 during the Great Financial Crisis. For three days worldwide shipping
was stranded due to shipping companies not knowing whether or not the
receiver’s bank credit was good.
That crisis was staved off due to a
massive amount of money printing. It was a temporary stay of execution,
like bailing out the Titanic with coffee cups, however, and one that may reach
much larger proportions in 2016.
Sailors watch the weather to see if
it is safe to set sail. Investors should be watching the economic climate
with the same intensity.
We are already sailing through
very stormy waters.
“Perhaps the most dramatic, and
under-reported, new aspect of this ongoing struggle has been the freeze on
global shipping. To confirm reports on the internet of a shipping freeze, this
writer called NYK lines, a major international shipping firm, and was told “we
cannot speak for the whole world but, as far as our company is concerned, with
current shipping prices we will lose money every time we send a ship so we have
stopped.” Chinese government sources told this newsletter shipping companies
are now demanding to be paid in Chinese yuan and not dollars and that is a
major reason for the freeze in shipping worldwide. If this continues, it will
lead to empty super-market shelves and social unrest, especially in the US. The
announcement last week by Walmart that it is closing 269 stores is just the
beginning.”
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