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Baltic Indices Up Since Our Smart Money Secrets Recommendation
Jan 2, 2019

There is an interesting development that is taking place in the shipping industry.

Since our Smart Money Secrets recommendation of July 2018, the Baltic Dirty Tanker index shot up 2x. Similarly, the Baltic Clean Tanker index increased 62% during the same period.

The Baltic indices track how much it costs to move materials by sea. Just look at how they have moved recently.

The Baltic Dirty Tanker Index, tracks rates for transporting crude oil. while the Baltic Clean Tanker Index, tracks rates for transporting petroleum products.

The Baltic indices are considered to be leading indicators of global economic health.

This is because most world trade, still happens over the sea and by ships.

I believe, the Baltic indices may moderate in the short-term. But this would be a sign of stagnating growth in the shipping fleet.

This, would in turn, lead to higher charter rates in the tanker segment.

Certainly, this would benefit the overall shipping industry.

But it would benefit our recommendation in particular because the company derives more than 70% of its revenue from the tanker segment.

Data Source: Lloyd's List

This Chart Of The Day was published in The 5 Minute WrapUp - How Falling Crude Prices Will Give a Boost to This Stock

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