Long used as a proxy for the degree of globalization, the Baltic Dry Index measures the shipping rates of dry goods. As the economy heats up, more goods are shipped, and the shippers can raise their shipping rates. When the recession began, the index or BDI dropped rapidly. After a slow, bumpy partial recovery, it looks like we may be re-testing the low. If the Suez Canal is closed, we should expect a new low very quickly. Take a look at this graph:

Of course, these low shipping rates will eventually make it cheaper to ship goods between countries, and demand will increase.

In the meantime, I don’t think the market price of shipping companies will benefit from this unrest. Most such companies trade on the basis of their high dividends, but those dividends may be less certain now. I’m considering whether to sell mine on Monday morning.