When Shipping Overcapacity Meets Falling Demand - Entrepreneur Generations

Global Economic Analysis - Entrepreneur Generations - The following charts show what happens when an increasing number of ships meets falling demand.

Harper Petersen Shipping Rates by Vessel Size - Ten Years



Source: Harper Petersen

More charts below, but first let's explain TEU.

TEU

TEU stands for twenty-foot-equivalent unit. It's an imprecise term because lengths are standard but heights are not.  Heights range from 2 feet three inches to 9 foot six inches. The most common heights are 8 feet 6 inches (2.6 m) and 9 feet 6 inches (2.9 m).



Let's hone in on shipping rates for the last two years.

Harper Petersen Shipping Rates by Vessel Size - Two Years



Harper Petersen Index - Ten Years



Harper Petersen Index - One Year



Something clearly happened in first quarter of this year in terms of shipping demand.

Mike "Mish" Shedlock

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://ift.tt/xbXsM8 to learn more about wealth management and capital preservation strategies of Sitka Pacific.

from Mish's Global Economic Trend Analysis http://ift.tt/1SMPw0T When Shipping Overcapacity Meets Falling Demand - Entrepreneur Generations

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