People’s Daily Online reports that although the global shipping is rising, shipping by water is facing down some volatility, weighed down by over-capacity. [4 Bullish Signals for Transportation ETFs.]
JeeYon Park for CNBC reports that the Baltic Dry Shipping Index, a leading economic indicator used by market insiders to gauge global demand for dry commodities has been on the decline in the last two weeks.
Both situations could negatively impact Guggenheim Shipping (NYSEArca: SEA), at least in the short-term. Though SEA doesn’t track the Baltic Dry Index, it has a 0.61 correlation.
For full disclosure, Tom Lydon’s clients own shares of IYT.
Tisha Guerrero contributed to this article.