Saturday, March 20, 2010

Shipping adapted well in the Crash

So we hear from Kristian Behrens Gregory Corcos Giordano Mion in this post. Shippers themselves held up admirably by their analysis, knowing exactly what to do.

Yes, shippers are tuned to consumer inventory changes that may come up, as I pointed out. So shippers not only manage a tight ship, they actually practice at quick adaptions to consumer changes. So good in fact that they beat the financial wizards to the punch on the second of two Baltic Dry plunges.

What was their entropy coincidence? Oil prices.

The consumer did it.
On or about July 5, 2008 consumers went on a driving strike and send an inventory backlog up the chain. Shippers had been prepared for that moment.

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