Baltic Dry Index Down to high 500's

http://stockcharts.com/freecharts/gallery.html?$BDI

Well, we had been warned to watch for it going below 500!

Prepare now!!

If Greece has more bank runs ... could trigger things since they already are thumbing noses to EU.

US Rig Count Collapse Accelerates, Production Stays High

Submitted by Tyler Durden on 02/06/2015 - 13:12
The worldwide rig count ended January at 3,309, down 261 from December but it is the US and Canada that is dominating that collapse. Following last week's all-time record absolute drop of 94 rigs (over 7%, most since APR09), the oil rig count dropped for the 9th week in a row (down another 83 to 1140 rigs - down 27% in last 9 weeks) as it tracks the 4-mo lagged oil price perfectly. The Permian basin saw the biggest cut in rig count. This is the lowest oil rig count since Dec 2011 (down 19.5% YoY) and lowest total rig count in the US since March 2010 - down 25% in the last 9 weeks). Hopes of production cuts are simply wrong as the last 4 times that rig counts have dropped, no production cuts have occurred.

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S&P Downgrades Greece, Hints At Bank Runs And "Capital Controls" In Worst-Case Scenario: Full Report

Submitted by Tyler Durden on 02/06/2015 - 12:42
And the hits keep coming. On the heels of a demand for repayment of ECB's profits from GGB bond gains and to extend the T-Bill limit to give the nation time to negotiate with EU leaders (i.e. a Bridge Loan) which Jeroen Dijsselbloem already dismissed earlier in the day, S&P just piled on...
GREECE RATINGS CUT TO B- FROM B BY S&P; MAY BE CUT FURTHER
This downgrade comes just 5 months after upgrading Greece because "risks to fiscal consolidation in Greece have abated." EURUSD is not moving much (having already cratered after US payrolls) but Greek stock ETFs are sliding once again.

This thread should be merged with https://watchermeet-up.forumotion.com/t11224-baltic-dry-index-down-to-high-500-s.
Bad times are coming!

billetman wrote:

This thread should be merged with https://watchermeet-up.forumotion.com/t11224-baltic-dry-index-down-to-high-500-s.
Bad times are coming!

That's the thread you are reading right now, billetman. Is there another thread that you might have been referring to for a merge with this one?

Well dang, how stooopid am I!!!! I meant that it should be merged with this one.
https://watchermeet-up.forumotion.com/t11223-it-s-the-timing-of-events-shutdown-of-america-s-supply-chain-looms

Well, looking at both topics side-by-side they are different enough to keep 'em separated. There is some subject overlap with the situation in Greece heating up so I'd advise that folks read both topics.

Hey, billetman, you ain't stoooopid. Like the rest of us you probably just have more data on your plate than your brain can handle. The peas get mixed into the mashed taters sometimes.

researcher wrote:

Well, looking at both topics side-by-side they are different enough to keep 'em separated. There is some subject overlap with the situation in Greece heating up so I'd advise that folks read both topics.

I think this fits in well with the theme of this thread:

Steelworkers union broadens strike

Quote :

http://www.houstonchronicle.com/busi...6068860.php#/0

Plant workers in Ohio and Indiana set join 30,000 others nationwide

Image 1 out of 3
Craig Hartley/Freelance
Joshua Lege takes a turn leading the chanting strikers as about 400 United Steelworkers members, family and supporters picket outside the LyondellBasell plant in east Houston.

The United Steelworkers union is broadening its nationwide walkout to include two more refineries.

The union planned to strike against two BP facilities in the Midwest early Sunday, union spokeswoman Lynne Hancock confirmed. The latest work stoppages were scheduled to begin 12:01 a.m. at BP's refineries in Toledo, Ohio and Whiting, Ind., Hancock said.

That brings the number of plants on strike to 11, including five in the Houston area, since the walk-out began a week ago.

About 30,000 workers at refineries, chemical plants, pipelines and oil terminals nationwide, including 5,000 in the Houston area, are represented by the union.

Company officials expressed their disappointment.

"BP remains at the negotiating table and is committed to reaching an agreement that provides good wages while giving management the flexibility it needs to enhance safety, improve efficiency and remain competitive with others in the industry," BP spokesman Scott Dean said in a written statement.

The company added that it is committed to ensuring a safe and orderly transition, having trained current and former BP employees to operate the refinery for the duration of this strike, Dean said.
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"We hope this strike will be as short as possible and for workers to return with a contract that ensures long-term prosperity for everyone," BP officials said.

Health, safety issues

The union is striking over health and safety issues, excessive overtime and contracting out of jobs. The union on Wednesday turned down the latest contract proposal from Shell, who is representing the oil industry at the bargaining table.

Hancock characterized the disputes as unfalr labor practices and accused Shell of "bad-faith bargaining" by refusing to give relevant information to the union and threatening retaliation against the strikers.

When workers strike over economic issues such as higher wages, a company can permanently replace the strikers. But when a strike is considered an unfair labor practice dispute, a company cannot permanently replace the striking workers, Hancock said.

"We are not aware of any unfair labor practice charges filed against Shell," Shell spokesman Ray Fisher said in a prepared statement.

"We regret that we have been unable to reach a mutually satisfactory agreement with USW prior to contract expiration," Fisher added. "We remain committed to resolving the remaining issues through collective bargaining at the bargaining table. We remain committed to providing competitive pay and benefits to our employees in an environment where people want to grow, develop and provide for their families."

The Steelworkers union represents more than 230 refineries, oil terminals, pipelines and petrochemical facilities in the United States. Of those, 65 are refineries that produce nearly two-thirds of the petroleum in the nation.

Work continuing

While the union called strikes at 11 facilities, union members continue to work as usual at the other plants are operating under "rolling 24-hour" contract extensions, which extend contracts a day at a time until negotiators reach an agreement or one side calls off the extension.

In addition to the national talks, local unions are also negotiating issues at individual sites.

SEE THE PICTURES OF SHIPS BACK UP @
http://www.zerohedge.com/news/2015-02-12/catastrophic-shutdown-americas-supply-chain-begins-stunning-photos-west-coast-port-c

The "Catastrophic Shutdown Of America's Supply Chain" Begins: Stunning Photos Of West Coast Port Congestion

Submitted by Tyler Durden on 02/12/2015 11:20 -0500

• Bank of America
  
• Bank of America
  
• Congressional Budget Office
  
• Fail
  
• Greece
  
• Port Of Long Beach
  
• President Obama
  
• Reality
  
• Recession
  
• recovery
  
• White House
  

inShare95
 
One week ago, when previewing what may be the first lockout of the West Coast Ports since 2002, we cited the Retail Industry Leaders Association who, realizing that failure to reach an agreement between the dockworker union and their bosses, the Pacific Maritime Association representing port management would lead to devastating consequences for the US retail industry, had several very damning soundbites:

• "a work slowdown during contract negotiations over the past seven months has already created logistic nightmares for American exporters, manufacturers and retailers dependent on an efficient supply chain. A complete shutdown would be catastrophic, with hundreds of thousands of jobs at risk if America’s supply chain grinds to a halt."
  
• "A west coast port shutdown would be an economic disaster."
  
• "A shutdown would not only impact the hundreds of thousands of jobs working directly in America’s transportation supply chain, but the reality is the entire economy would be impacted as exports sit on docks and imports sit in the harbor waiting for manufacturers to build products and retailers to stock shelves."
  

And the punchline: "The slowdown is already making life difficult, but a shutdown could derail the economy completely."
Just so readers have a sense of what is at stake, this is what the average dockworker makes: $147,000 a year in salary, plus $35,000 a year in employer-paid health care and an annual pension of $80,000 (according to an association press release). It is the overtime compensation to the total shown here, which grosses to over a quarter of a million dollars, that dockworkers are negotiating to raise or else the key US supply-chains gets it.
Incidentally, the demands of the dockworker union and their leverage is precisely the reason for the dramatic discrepancy we showed in the following chart:
.zerohedge.com/sites/default/files/images/user5/imageroot/2015/01/odey 2.jpg][/url]
 
In any case, as of last night, the choking of the US supply-chain has officially begin, when as the LA Times reported last night, "West Coast ports — including the nation's busiest in Los Angeles and Long Beach — will partially shut down for four days as shipping companies plan to dramatically slash dock work amid an increasingly contentious labor dispute."
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