by Guest » May 16, 2022, 7:17 am
The ore trade is tied directly to the steel market, which is usually one of the first market sectors affected by economic downturns and among the last to recover. Although some may disagree, I believe it can be successfully argued that we are either entering or are already in a new period of economic recession. With the current rate of inflation, increasing cost of labor, and rising fuel prices along with a plethora of other factors this recession could very likely be along the lines of the 2007-2009 recession, if not worse. Hopefully, this is not the case but there is a significant level of volatility in the stock market with daily swings of several hundred points on a daily basis with this averaging out to a sizable decline as is probably reflected in the current status of your 401k/IRA accounts. It is entirely normal for the economy to expand and retract so perhaps this particular cycle will be nothing out of the ordinary. As for shipping on the Great Lakes, if things don't improve by September I would not expect any of the vessels currently idle to return to service this season and it is equally likely that several more will be idled in the coming months. It is also possible that ships operating primarily in the ore trade will have shortened seasons if not sent into layup during early autumn.
The ore trade is tied directly to the steel market, which is usually one of the first market sectors affected by economic downturns and among the last to recover. Although some may disagree, I believe it can be successfully argued that we are either entering or are already in a new period of economic recession. With the current rate of inflation, increasing cost of labor, and rising fuel prices along with a plethora of other factors this recession could very likely be along the lines of the 2007-2009 recession, if not worse. Hopefully, this is not the case but there is a significant level of volatility in the stock market with daily swings of several hundred points on a daily basis with this averaging out to a sizable decline as is probably reflected in the current status of your 401k/IRA accounts. It is entirely normal for the economy to expand and retract so perhaps this particular cycle will be nothing out of the ordinary. As for shipping on the Great Lakes, if things don't improve by September I would not expect any of the vessels currently idle to return to service this season and it is equally likely that several more will be idled in the coming months. It is also possible that ships operating primarily in the ore trade will have shortened seasons if not sent into layup during early autumn.