Previously we highlighted the Baltic Dry Index (BDI) as a popular indicator of global trade intensity. This missive suggests that the BDI is losing its relevance as an effective indicator.
Not sure I totally buy the argument. For example, the author suggests that changes in the BDI do not correlate well with returns of major cargo carriers. But the author never demonstrates a strong relationship between the BDI and carriers even before the supposed period when the BDI's effectiveness started to wane.
In any event, it's good to keep in mind that some believe that the BDI is becoming a less relevant measure of global trade.
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