Research Pit

[Jagman]

This is interesting, the BDI an index of raw material shipping worldwide:

"The BDI provides an assessment of the price to move the world’s major raw materials by sea and insight into the global shipping market. It is an accurate barometer of the volume of global trade. A large demand for shipping means rising rates, and slack demand means lower rates. The BDI doesn’t deal with ships carrying finished goods. It only deals with precursors to production, so the index seems to be a better indicator for economic growth and production and is devoid of speculative content. No one books an ocean freighter on a hunch! When bulk shipments of cement, grain, iron ore, etc. are arranged with a shipping company, there is economic activity planned at the end of the line where the raw materials are delivered."

Link to full article and charts:

http://www.kitco.com/ind/Downs/aug042005.html