Mar 16

China Freight Index Collapses To Fresh Record Low:

The Baltic Dry Index has risen for the last few weeks, buoyed by hopes (a la Iron Ore) of a National People’s Congress stimulus surge from China. While the scale of the ‘bounce’ is negligible in real terms compared to the total collapse, it has caused such momentum-muppets as Jim Cramer to proclaim China ‘fixed’ and investible. So we have one quick question – if everything is awesome, why did the China Containerized Freight Index just crash to new record lows?

It appears BDIY gets over-excited relative to CCFI…


Chart: Bloomberg

Only to rapidly crash back to CCFI reality shortly afterwards. Given the complete collapse back of Iron Ore, the hopes placated on the dead-cat-bounce in BDIY appear a little misplaced.

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