The Baltic Dry Index sinks

On 24 October 2008 Bloomberg reported that the Baltic Dry Index (BDI) has fallen 90% since May 2008 (see chart). On 16 October 2008 the Financial Times carried a story on this drop.

The BDI measures the cost of chartering large bulk ships and is regarded as a leading indicator of global economic activity. Back on 24 October 2003 an article by Daniel Gross in Slate described it as the best economic indicator you've never heard of.

With such developments as this and the fall in the price of oil maybe the world is getting smaller again (see previous post).