Econ Note: Baltic Dry Index, a Measure of Global Recovery, in Sharp Decline

The Baltic Dry Index, a closely watched measure of global demand, has been in sharp decline since peaking less than a month ago, casting doubt on the global economic recovery from the Great Recession.

The Baltic Dry Index, which tracks international maritime shipping rates for everything from iron ore to coal to grain, has tumbled more than 20% since May 26. Since few things are as finely tuned to the macroeconomic picture as Panamax Gearless Bulk Carriers, plying the seas loaded with the rawest of raw materials, lower shipping rates tend to bode ill for future global growth.