# World Trade in Disastrous Collapse



## wayneL (14 January 2009)

Not just evidence from the Baltic dry Index, but now empirical and anecdotal evidence from Shipping Agents.

This has severe ramifications for Oz commodity sector IMO.

http://www.telegraph.co.uk/finance/4229198/Shipping-rates-hit-zero-as-trade-sinks.html



> Shipping rates hit zero as trade sinks
> Freight rates for containers shipped from Asia to Europe have fallen to zero for the first time since records began, underscoring the dramatic collapse in trade since the world economy buckled in October.
> 
> 
> ...


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## MrBurns (14 January 2009)

Sometimes I wonder how bad this really is then I read something like this.
The sooner it hits the fan the better, it's scary just waiting for who knows what.
I guess it will manifest itself in unemployment, massive unemployment and from that everything else will follow.
House prices collapsing and so on.
We wont have to wait too long I guess.


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## MrBurns (14 January 2009)

From Crikey today - the first part of the article only.




> Fairfax classifieds in free fall. What next?
> Media consultant Peter Cox writes:
> 
> 
> ...



.


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## Temjin (14 January 2009)

In the meanwhile, we have an under supply of housing in Australia, massive immgriation and low interest rate and therefore, house prices will continue to rise despite the world trade has collapse. Unique place we live in..


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## Glen48 (14 January 2009)

Lets hope the Feds up the FHO's so they can keep buying Ponzi property and then write off all the Mortgages for the  rest of us.
Other wise we will be just like any one else in the rest of the world.


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## prawn_86 (14 January 2009)

Lets try and keep the posts on topic.

If you want to discuss property do so in the proper threads please.


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## MrBurns (14 January 2009)

prawn_86 said:


> Lets try and keep the posts on topic.
> 
> If you want to discuss property do so in the proper threads please.




Where is the property forum ?, I need a few answers on Port Douglas and I cant see a link to it anywhere.


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## prawn_86 (14 January 2009)

Either the "Property Prices" threads

Or www.aussiepropertyforums.com


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## Temjin (14 January 2009)

Sorry. 

However, I haven't heard much about how much exporting we are doing and the related freight fee being charged right now. Is it as crap as the route from China-to-Europe? It does have huge implications for the mining industry here and with the supply chain industry. I'm involved in one of the supply chain, and have to see any slow down in terms of engineering procurement...but I guess it will become more visible later in the year.


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## BentRod (14 January 2009)

So the shipping companies are offering rates @ Zero just so they can continue to operate?

How long could they afford to do that for?


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## numbercruncher (14 January 2009)

We can give all the soon to be unemployed foreigners and "backdoor'n it" students a lift home on these empty ships cheap eh ?


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## IFocus (14 January 2009)

A major down stream manufacturing business that I know well here in the west is running out of warehouse space as overseas (Asia) orders are drying up.

Sister plants in the US are either closed down or at 50% production rates


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## Smurf1976 (14 January 2009)

IFocus said:


> A major down stream manufacturing business that I know well here in the west is running out of warehouse space as overseas (Asia) orders are drying up.



Next thing that happens is they cut production. Then their upstream suppliers face the same problem. Then they cut production. Then their upstream suppliers... and so the cycle continues until we reach bottom.


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## gfresh (14 January 2009)

I was thinking similar to the above.. I would have thought if the costs of shipping  was now below cost, things would not be shipped, and/or eventually shipping companies would go out of business. Eventually there wouldn't be enough supply for goods to be shipped effectively, and hence pricing would have to pick up again. 

Same process seems to happening to many of the major base metals producers right now, shutting down mines, mothballing projects, laying off workers as production costs approach sale costs.. adjustment process.


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