What Does the Baltic Dry Index Indicate For the Global Economy?

The Baltic Dry Index is often looked at as a leading indicator of the global economy as higher shipping rates indicateeconomy-2h-8 stronger demand for shipping and healthier global trade. Year to date, the index is up 234% and is now at its highest level in more than three years. This would indicate that the global economy is picking up steam.

The chart below shows historical readings in the Baltic Dry Index going back to 2007.  While the index is still well off its highs from 2007 and 2008, 2013 has been a great year for shipping rates.


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