Specifically, dry-bulk commodities are thought as a leading economic indicator, because they are both used in core industrial sectors, such as steelmaking and power generation. As stated by analysts, this decline shows an economic slowdown.
Moreover, Jeffrey Landsberg, managing director of commodity consultancy Commodore Research noted that
The global economy and dry-bulk shipping market are showing us very real signs of distress.
Although dry-bulk rates are often facing pressure during the early stages of a year, the decreases experienced lately are rare.
Also, the Baltic Index lost a quarter of ts value and dry-bulk is not the only shipping sector that faces challenges.
The Harper shipping Index has been reduced by 30% since June 2018.
Concerning the economic slowdown, container rates, as being reflected as an economic indicator, show the underscores weakening manufacturing data from Asia, Europe and North America.
What's more, Hussein Sayed, chief market strategist at futures brokerage FXTM stated that the US-China trade conflict, the US Government shutdown and Brexit reflect a serious economic uncertainty.
A survey published focused on the euro zone, noted that business develop stalled out at the start of 2019 because of trade tensions and political woes meant.
Following, Japan published a similar weak manufacturing data in its own survey.
Whereas in China, the National Development and Reform Commission (NDRC) highlighted that the decrease of the economy would impact the job market.
Concluding, the US seem to be stable so far, although manufacturing indices have showed weakening spots since late 2018.