Author Topic: buy stuff now.. while it's still in a warehouse somewhere  (Read 825 times)

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Offline zeker

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buy stuff now.. while it's still in a warehouse somewhere
« on: November 22, 2015, 07:58:25 PM »
Global Trade Just Snapped: Container Freight Rates Plummet 70% In 3 Weeks     
 
      Reuters reports that spot rates for transporting containers from Asia to Northern
Europe have crashed a stunning 70% in the last 3 weeks alone. This almost
unprecedented divergence from seasonality has only occurred at this scale once
before... 2008! "It is looking scary for the market and it doesn’t look like there
is going to be any life in the market in the near term."

Submitted by Tyler Durden on  11/21/2015 14:35 -0500
http://www.zerohedge.com/news/2015-1...met-70-3-weeks

"This market is looking like a disaster and the rates are a reflection of that,"
warns one of the world's largest shipbrokers, but while The Baltic Dry Freight Index
gets all the headlines - having collapsed to all-time record lows this week  - it is the
specifics below that headline that are truly terrifying. At a  time of typical seasonal
strength for freight and thus global trade  around the world, Reuters reports that
spot rates for transporting containers from Asia to Northern Europe have
crashed a stunning 70% in the last 3 weeks
alone. This almost unprecedented
divergence from seasonality has only occurred at this scale once before... 2008!
"It is looking scary for the market and it doesn’t look like there is going
to be any life in the market in the near term."

Baltic Dry at record lows...


And Shanghai Containerized Freight collapsing...


As Reuters reports,<blockquote>Shipping  freight rates for transporting containers from ports in Asia
to  Northern Europe plunged by 27.9 percent to $295 per 20-foot
container  (TEU) in the week ending on Friday,
one source with access
to data from the Shanghai Containerized Freight Index told Reuters.

 The drop came after spot freight rates on the world’s busiest route 
dropped 39.3 percent last week, and the current rates are widely seen
 as  loss-making levels for container shipping companies.

The spot freight rates for transporting containers, carrying  anything
from flat-screen TVs to sportswear from Asia to Northern  Europe,
has fallen 70 percent in three weeks.


 In the week to Friday, container freight rates fell 22.5 percent from  Asia to
ports in the Mediterranean, dropped 8.6 percent to ports on the  U.S. West
Coast and were down 8.0 percent to ports on the U.S. East  Coast.
</blockquote>But even more concerning is this collapse is occurring just as the containerized
freight industry enters its golden seasonal period...



Now where have we seen this massive unprecedented decoupling before?




Of course the clarion calls of the status quo, everything is awesome,  optimists is that
this has nothing to with demand but is merely due to  over-supply of ships...

Supply has indeed surged...


Source: @M_McDonough


But only thanks to totally manipulated and decoupled-from-reality  signals from
'markets' that caused firms to massively mal-invest in  building ships for the
renaissance of global trade... which never  happened...



In fact, as the chart above shows, growth in global trade has been slowing
down for some time
, as Acting-Man's Pater Tenebrarum notes,<blockquote>But  somewhere between collapsing oil prices, dollar strength, and
consumer  lethargy the economy’s narrative has drifted off plot.

 The  theme has transitioned from one of renewed growth and recovery
 to one of  recurring sickness and stagnation.  Mass malinvestments in U.S.
shale  oil, Brazilian mines, and Chinese factories and real estate must be 
reckoned with.

 Price adjustments, bankruptcies, and debt restructuring must be  painfully
worked through like a strawberry picker hunkered over a  seemingly
endless furrow row of over ripening fruits.  Sore backs, burnt  necks,
and tender fingers are what the over-all economy has in front of  it.
The U.S. economy is not immune to the global disorder after all.

</blockquote>More evidence is revealed each week that the unexpected is happening.  Instead
 of economic strength and robust growth, economic fundamentals are 
breaking down.  Manufacturing is slowing.  Consumer spending is soft.


For additional edification, just look at copper, iron ore, or aluminum...




</blockquote>
of all the things I,ve lost.. I miss my mind, the most