The Baltic freight index fells well below 1000 which is a 95% drop since June. What does it mean to the world economy? Everything! Listen to this podcast on the Stratfor website and learn that;
Just a few months ago you would have to pay $234,000 a day to rent a cargo vessel and today you can have it for just $6300.
You can buy a ship now at rock bottom prices. Almost the price of scrap iron! Prices have fallen faster and much more dramatically than housing.
Ships are at ports fully loaded because buyers of commodities cannot get letters of credit. Trade has dropped so dramatically that it will affect us all, especially those who depend on commodities and shipping.
The IMF is being so burdened with demand for cash by countries heavily dependent on commodity prices that they may not have enough funds to keep things going for another year.
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