The Baltic Dry Bubble

The Baltic Dry Index,a gauge of international shipping activity,has been surging of late.Experts believe that China is driving it.China is building a lot of infrastructure now,requiring a flow of commodities.The Baltic Dry does not reflect what's going on in the U.S. economy.It's a very volatile index.
The supply of ships will put a cap on the Baltic Dry,people familiar with the matter believe.Many ships are coming online to meet Asian demand.The surge in the index is an anomaly driven by congestion at ports and iron ore restocking for steel production.Next year will be more tempered.Even if there is a correction,most companies in the trade will still be profitable,these experts think.