Although demand fundamentals are always important, these should be viewed with a healthy respect for the supply side as well. Supply capacity is largely inelastic (since newbuildings can take more than two years to build) but since it can be forecast reasonably accurately, its influence is often overlooked in the analysis and interpretation of Baltic Dry Index (BDI) behaviour. One of the most important Greek philosophers, Plato, said, “A good decision is based on knowledge and not numbers.”
This is only an excerpt of Storm Approaching? Keeping a beady eye on the BDI in these turbulent waters
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Tags: · Banca IMI SpA London Branch (part of Intesa Sanpaolo banking group), Claudio Chiste
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