Baltic Index Collapsing? I believe many of my readers especially those in the industry are seeing a slide off never before experienced in current times. From a high of 11,000 to the Baltic Dry Index trying to hang on to 2200. Obviously the bigger picture of economic crisis is the big picture, yet the speed of the decline is extremely disturbing to say the least. The last time the Baltic was at this levels, Oil was not at USD 80 per barrel. (...) Now the one big real fear is that the Baltic is getting squeeze even further is that Traders are increasing finding it tougher to trade commodities and goods because of the increasing reluctance by banks to issue Letters of Credit. Of course, if they decide not to honor existing letters of credit, then all hell breaks loose.
Obviously the bigger picture of economic crisis is the big picture, yet the speed of the decline is extremely disturbing to say the least. The last time the Baltic was at this levels, Oil was not at USD 80 per barrel.
(...)
Now the one big real fear is that the Baltic is getting squeeze even further is that Traders are increasing finding it tougher to trade commodities and goods because of the increasing reluctance by banks to issue Letters of Credit. Of course, if they decide not to honor existing letters of credit, then all hell breaks loose.
