Author Topic: Collapse of global shipping - world economy in free fall? (Read 6133 times)

Earl of Devonshire · « **Reply #15 on:** February 14, 2016, 01:24:41 PM »

http://www.bloomberg.com/quote/BDIY:IND The BDI is now up to 291 (up 1 from 290 before). Probably a tiny blip in the current downward collapse.

RomanCatholic1953 · « **Reply #16 on:** February 17, 2016, 08:47:58 PM »

Quote from: Earl of Devonshire

http://www.bloomberg.com/quote/BDIY:IND The BDI is now up to 291 (up 1 from 290 before). Probably a tiny blip in the current downward collapse.

From a high in 2014 of 1,091 BDI.

Earl of Devonshire · « **Reply #17 on:** February 18, 2016, 04:02:09 AM »

Quote from: RomanCatholic1953

Quote from: Earl of Devonshire
http://www.bloomberg.com/quote/BDIY:IND The BDI is now up to 291 (up 1 from 290 before). Probably a tiny blip in the current downward collapse.

From a high in 2014 of 1,091 BDI.

That is quite a massive drop but it seems to be on the rise again. It's on 307 now http://www.bloomberg.com/quote/BDIY:IND

Stubborn · « **Reply #18 on:** February 18, 2016, 10:20:36 AM »

The BDI follows the price of crude oil, for the last few days, crude has been bouncing off it's lows and is taking BDI with it.

If this move has any life in it, the BDI should get back up to the 650 area. If that happens, then we see if it can punch higher or if it fails and heads lower from there.

Amazing how it all works - the S&P 500 critical area that needed to hold was 1800 - the market bounced from that area same time oil and BDI and a few trillion dollars worth of other things did.

RomanCatholic1953 · « **Reply #19 on:** February 23, 2016, 11:26:20 AM »

The reason I heard why the BDI is rising slightly on the X22 report today
is the building of new ships by China that were on order before the
world economy turn down. Once launched, unless the economy
improves tremendously, the ships will join the ghost fleets already
anchored off sea ports.
Or else the buyers of the new vessels decide to have them scraped.
To save money in storage fees.

Stubborn · « **Reply #20 on:** February 24, 2016, 05:10:23 AM »

Yes, buying a new ship is the biggest cost of doing business for the transport company, after that the next biggest cost of doing business is the price of fuel, which is why the BDI should follow the price of crude oil, not tick for tick, but overall the price of crude will dictate the price of the BDI over time.

RomanCatholic1953 · « **Reply #21 on:** February 24, 2016, 11:14:25 AM »

Quote from: Stubborn

Yes, buying a new ship is the biggest cost of doing business for the transport company, after that the next biggest cost of doing business is the price of fuel, which is why the BDI should follow the price of crude oil, not tick for tick, but overall the price of crude will dictate the price of the BDI over time.

Bunker fuel for ships are the cheapest of all fuel. With the fall of
oil prices now about $30.00 a barrel will make bunker fuel even
cheaper.

Alexandria · « **Reply #22 on:** February 24, 2016, 11:32:18 AM »

Why is kerosene still almost $5.00 a gallon?

Stubborn · « **Reply #23 on:** February 24, 2016, 12:27:52 PM »

Quote from: Alexandria

Why is kerosene still almost $5.00 a gallon?

Good question. Maybe they are still using the kerosene that was refined a year or two ago?

RomanCatholic1953 · « **Reply #24 on:** February 24, 2016, 12:38:04 PM »

Quote from: Alexandria

Why is kerosene still almost $5.00 a gallon?

I say it is all the EPA and environmental regulations put on top of
those companies that refine kerosene.

I have not seen an active kerosene lamp in many, and many years.
Must have been a mountain cabin near Lake Arrowhead, California
in the early 1950's.

Here is a chart of the gradual rise of the price of kerosene through
the years.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMA_EPPK_PWG_NUS_DPG&f=M

Alexandria · « **Reply #25 on:** February 24, 2016, 12:46:46 PM »

We use a kerosene heater to heat our home instead of our electric forced hot air which costs a fortune due to the fact that our local electric company raises its rates every year, sometimes twice a year. When we first got the kerosene heater about twenty or more years ago, kerosene was less than .99 a gallon.

RomanCatholic1953 · « **Reply #26 on:** February 24, 2016, 01:45:13 PM »

Quote from: Alexandria

We use a kerosene heater to heat our home instead of our electric forced hot air which costs a fortune due to the fact that our local electric company raises its rates every year, sometimes twice a year. When we first got the kerosene heater about twenty or more years ago, kerosene was less than .99 a gallon.

Did I answer your question?

I lived most of my life in the Big City. Just have far distant memories
of my family use of a kerosene lamp in a once small town, now a
large City.

lots of the price rise is due to government's environmental regulations
and forcing companies if they want to stay in business to comply with
the regulations by spending lots of money.

On top of the companies that refine kerosene have to make a fair
profit to stay in business and pay their employees.

Just look at the kerosene can and see where the kerosene is refined
and if it shows it is of foreign origin. Means because of all the
regulations that the EPA put on the company. It was decided to
outsource the refining of kerosene overseas such as China just
to escape all the U.S. regulations. Unfortunately this cost U.S. Jobs.

Alexandria · « **Reply #27 on:** February 24, 2016, 01:48:29 PM »

Quote from: RomanCatholic1953

Quote from: Alexandria
We use a kerosene heater to heat our home instead of our electric forced hot air which costs a fortune due to the fact that our local electric company raises its rates every year, sometimes twice a year. When we first got the kerosene heater about twenty or more years ago, kerosene was less than .99 a gallon.

Did I answer your question?

I lived most of my life in the Big City. Just have far distant memories
of my family use of a kerosene lamp in a once small town, now a
large City.

lots of the price rise is due to government's environmental regulations
and forcing companies if they want to stay in business to comply with
the regulations by spending lots of money.

On top of the companies that refine kerosene have to make a fair
profit to stay in business and pay their employees.

Just look at the kerosene can and see where the kerosene is refined
and if it shows it is of foreign origin. Means because of all the
regulations that the EPA put on the company. It was decided to
outsource the refining of kerosene overseas such as China just
to escape all the U.S. regulations. Unfortunately this cost U.S. Jobs.

RC, thank you. Yes, you did answer my question.