Is Santa Poised to Fill Christmas Stockings with Coal?

If container shipping is any reflection of the upcoming Christmas season, Santa
is poised to fill the nation’s Christmas stockings with coal
Let’s start by noting that
Baltic Dry Index Falls Below 500 for First Time Ever (
Container Freight Rates Plummet 70% In 3 Weeks (Zero Hedge).

For a corroborative report on shipping along America’s Atlantic Coast, we turn to
correspondent J.M., who works in the shipping industry.
Here’s is J.M.’s sobering
first-hand observations:

We just arrived back in New York after a multi-port run down the Atlantic seaboard. My observations of the box ship trade in and out of those major ports, as well as coastwise between the ports, is that business is dismal.

I’ve never seen so many big container ships running around high in the water with nearly empty decks and holds. Not even in 2008-2011.

Admittedly, these are only anecdotal observations. And I’m well aware of the confirmation-bias tendencies we are prone to. Having said that, my experienced eye calculated that less than a third of the dozens of box ships I’ve seen this past 2 weeks were “normally” loaded, meaning roughly 2/3 to 3/4 of capacity or better. About half were obviously very light on cargo, 1/3 or less.

The most consistently glaring anomaly: the empty deck space, with lots of bottom paint

showing. Translation: little cargo,
and they weren’t even deadheading empty boxes around between ports to keep the global system supplied logistically.

Aside from the record-low BDI, an obviously ominous canary-in-the-coal-mine moment by my reckoning.

Thank you, J.M., for the first-hand report. Now perhaps the all-important Christmas
Industry received all its goodies in September, and the current flotilla of nearly
empty container ships is not relevant to the coming shopping season.

But the pathetically frantic poaching of retailers suggests otherwise. The tsunami
of web, email, print and mail adverts are reeking of desperation–a desperation to
snag the few dollars consumers are willing to spend this holiday season before some
competing retailer entices the tightfisted consumer first.

There’s a noticeable weariness in the air this shopping season, bordering on
retail-mania exhaustion.

Even Black Friday has been drained of shopaholic excitement by pre-sales and pre-pre-sales.

It’s now essentially impossible to parody the absurdity and excess of Christmas in America.
Can’t live without a $800 fake Christmas tree made in China for the Martha Stewart brand?
I suspect a great many people are realizing they either 1) can in fact live quite well without the
absurd excess of credit card-funded spending or 2) they can’t afford the absurd excess
of credit card-funded spending.

Perhaps a retail coals-in-the-stockings Christmas will awaken the mainstream media
to the reality that recession is now a global phenomenon.

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  • Oranges & Lemons

    Collateral damage in the United States as a result of China’s Yuan becoming the next reserve currency (official announcement to be made by the International Monetary Fund next 11/30/2015):
    – Senior citizens
    – Retirees
    – The disabled

    This important segment of the US population (around 38%) live on fixed incomes.

    Americans chronically addicted to government benefits who were not included in the group mentioned above (around 27% of the entire populace), specifically those enrolled in subsidized housing, general assistance, food stamps and SSI, will gradually see those entitlements being diminished until they are completely eradicated

    The progressive loss of purchasing power using US Dollars is going to hurt badly everyone in this country, is unavoidable and will be labeled as the event that caused the SHTF.

    This blog seems to deliberately ignoring the tectonic shift that will take place in the financial world in less than 7 days.