Due to the contango in the oil market, some investors ahve been buying oil, locking in higher prices for sale next year, and storing it on ships. Given all the unused capacity — trade is way down — there are plenty of cheap boats out there for the using.
Here’s another use: Unsold car storage. Toyota’s gots tons of excess inventory and now has plans to store up to 12,500 units on boats in Sweden.
This kind of use is another reason why the pickup in the Baltic Dry Index — a measure of ship day rates — may not actually reflect any increased trade.
What else can we store on ships this way? Toxic debt?
(via Angry Bear)
Business Insider Emails & Alerts
Site highlights each day to your inbox.