TNNWC ENTREPRENEURIAL PUBLICATIONS

TNNWC Publications And Informational Products Division publishes The National Networker (TNNWC) Weekly Newsletter and The BLUE TUESDAY Report especially for entrepreneurs and early-stage venturers; free weekly subscriptions to these informative publications are available online to all entrepreneurial Members of TNNWC.

Membership in TNNWC is free (it's automatic for any subscriber to any TNNWC Publication) and available at our website. When you arrive there, just click on any of the JOIN US or BECOME a MEMBER buttons or links.

Monday, February 14, 2011

STRATEGIC BUSINESS AND MARKET TRENDS: The Baltic Dry Index – A Pure Global Supply v. Demand Barometer? - Part 1

Strategic Business and Market Trends with RD Watkins


What if you had access to a global barometer of your competitors capital deployment plans? If this barometer were data points that you could plot on a graph for analysis, would that aid in your decision making process and strategy planning? Further, what if those trends were unpolluted by deflections based on speculation or high frequency trading influences? If that data point were added as an additional validation input in your SWOT analysis, do you anticipate you would be better able to ascertain the margin pressures you might face? Do you think you could make better decisions as to where to source your materials acquisition, manufacturing, support facilities and manpower?

Baltic Exchange Dry Index (BDI) & Freight Rates
This article exposes that the Baltic Dry Index (BDI) is just such an indicator, amongst many little known and obscure trend analysis tools, that an enterprise investor or entrepreneur should consult when planning the entry timing and geographical locations in which his venture should be set. This precursor to production is often times labeled as the purest of the data points available in regards to contract futures and business trends in general. It exposes the committed capital in both shipping spending and indirectly the tonnage of raw material delivery contracts as they happen over time. Because it is tracked and calculated daily, it can be read similar to a stock chart to expose trends and project reversals of the same when compared with other data.

What is the Baltic Dry Index?
The Baltic Dry Index (NASDAQ: BDIY) is a measure of the average price per metric ton to ship dry bulk materials by sea (i.e. cargo ships). It is based on 20 different routes and ship capacities and is calculated daily as an average of those aggregate costs. The BDI uses the US dollar as the standard currency and numerator of measure when calculating and posting its daily reading. The Baltic Dry Index can Expose Trends relative to...
  • Shipping costs of Raw Materials

  • Global Margin Pressures

  • Commodity Demand Trends

  • Capital Deployment Commitments and General Business Confidence

  • Decoupling the US Dollar Value within the BDI and Global Commerce

Shipping costs of Raw Materials

The commodities shipped and tracked by the BDI are raw material commodities such as coal, steel, cement, and iron ore. It does not include nor concern itself with finished goods shipment or container shipping data and remains, other than raw material futures contracts themselves, the measure farthest away from production and consumption data points.

Other Related Resources:

- In Part 2 we present how the BDI indicates trends in global margin pressures and commodity demand.

- In Part 3 our discussion turns toward assessing how aggregate competitors planning for capital deployment is exposed and how to remove fiat currency distortion from the BDI indicator for a more normalized, tangible asset based reading.


RD Watkins brings value and builds productive and collaborative relationships by "Applying Common Sense Project Management Principles in a Virtual World". He fills the role of Senior Project Manager, is a PMI certified PMP® (Project Management Professional) and holds CompTIA IT Project+™ credentials. You can connect with RD to discuss his capabilities in cost effectively managing and enhancing productive consensus on your virtual projects through his LinkedIn.com profile at http://linkedin.com/in/rdwatkins or contact him via email at mailto:mailto:rd@rdwatkins.com.

For more information, please visit RD's TNNWC Bio.


Membership is FREE!The NATIONAL NETWORKER™The BLUE TUESDAY Report™The NATIONAL NEWSPICKER™LEFT, RIGHT and CENTER™Customer Experience PracticeSpecialized Financing & Credit EnhancementEmerging Enterprise Venture Capital Program™Merchant Payment Processing SolutionsNews Releases, Publicity and Public RelationsBUZZWORKS™ - Branding and Social Media DominationMarket Research, Surveys and PollsAssessment ToolsBLOGWORKS™ - Expand Your Search Engine Presence, Positioning and CredibilityAdvertise with Us!Selected Service ProvidersInternational Connections Service - Go GlobalIntelligence and Information OperationsInstant Mobile Communications & ApplicationsCooperative Business Community
Visit Our WEBSITE for more!http://www.TheNationalNetworker.com
Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Resources for Business Planning, Development, Capital and Growth

Forward/Share This Article With Colleagues And Social Media:
Share/Save/Bookmark

No comments:

Blog Archive

BNI News Feed

The Emergence of The Relationship Economy

The Emergence of The Relationship Economy
The Emergence of the Relationship Economy features TNNWC Founder, Adam J. Kovitz as a contributing author and contains some of his early work on The Laws of Relationship Capital. The book is available in hardcopy and e-book formats. With a forward written by Doc Searls (of Cluetrain Manifesto fame), it is considered a "must read" for anyone responsible for the strategic direction of their business. If you would like to purchase your own copy, please click the image above.

Knowledge@Wharton













Site Credits:


Featured in Alltop
ALLTOP Business
News Wire. HOT.
Cool Javascript codes for websites
KeepandShare.com(R)  Fabulous Free Calendars

Create FREE graphics at FlamingText.com