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Shayne Heffernan is an Economist, Trader, Fund Manager and Venture Capitalist based in Asia. He also serves as Editor and contributor at www.livetradingnews.com, Founder of The Heffernan Group and currently building the company's financial services business in China. Major shareholder and CEO... More
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  • Shipping News, USA, Europe, Asia, DSX, TRTH, DRYS 0 comments
    Sep 1, 2012 10:53 AM | about stocks: DRYS

    USA

    U.S. containerized imports surged 9.7 percent in July from a year earlier, to 1,562,235 twenty-foot-equivalent units, on strong growth in auto parts and furniture, according to PIERS. The growth - imports also advanced 6.2 percent over June - marks impressive expansion of the import trade, especially considering last July's year-over-year drop of 5.2 percent, said Mario O. Moreno, economist for The Journal of Commerce/PIERS.

    Year to date, U.S. containerized imports were up 3.5 percent. Import growth will continue to accelerate during the second half of 2012, said Moreno, who expects full-year growth of 4.6 percent for imports and 2.3 percent for exports.

    "Sales of existing homes were up 2.6 percent through July," Moreno noted, contributing to demand and driving imports of furniture, the largest containerized commodity, to an 8 percent increase. Auto parts rose 25 percent. Other containerized commodities showing sharp gains included bananas, up 32 percent; toys, up 13 percent; and refrigeration equipment, up 36 percent. Increases in furniture and toys pushed China's U.S.-bound goods up 5 percent to 733,463 TEUs. Overall containerized imports from Asia rose 7.7 percent over July 2011.

    Rising prices and poor demand outlook continued to impact footwear imports, which declined 9 percent.

    Best Buy Diana Shipping Inc. (NYSE:DSX)

    Diana Shipping Inc. is a holding company. The Company is a global provider of shipping transportation services. It specialize in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. The Company's fleet consists of 23 dry bulk carriers, of which 14 are Panamax, one is Post-Panamax and eight are Capesize dry bulk carriers, having a combined carrying capacity of approximately 2.5 million dead weight tons (dwt). As of December 31, 2010, its fleet consisted of 14 modern Panamax dry bulk carriers, one Post-Panamax, eight Capesize dry bulk carriers, and two container vessels, owned by Diana Containerships, that had a combined carrying capacity of approximately 2.6 million dwt, and a weighted average age of 5.4 years, excluding the container vessels owned by Diana Containerships and its Newcastlemax vessels under construction.

    Interested in Investing in Shipping?

    Linda Johnson,
    Business Development Director - Private Client Group,
    Heffernan Capital Management
    Sales@Heffcap.com

    Singapore

    3 Raffles Place #07-01
    Bharat Building Singapore 048617
    Tel: +65 6329 6408
    Fax: +65 6329 9699

    Asia

    Asia is the bright spot in Shipping, A meeting of officials of Asia-Pacific economies agreed on Thursday to try to conclude a pact in 2015 to set up a free trade zone.

    The ten ASEAN member nations and six other countries - Japan, China, South Korea, India, Australia and New Zealand - made the agreement at a meeting in Siem Reap, Cambodia, Japanese media reports said.

    They said they would try to lower or abolish tariffs on a range of products while giving special consideration to farm produce and other sensitive items.

    They also agreed to try to liberalize trade in services and investment, and relax rules on protecting intellectual property.

    The regional grouping says that their goals will be more ambitious than those of their existing free trade agreements. The countries are to take a final decision at a summit in November in Phnom Penh after further discussion in working-level consultations. Talks on launching the free trade zone are scheduled to start early next year, the report added.

    Best Buy Trai Thien USA Inc (PINK:TRTH)

    Trai Thien USA is a fast-growing Vietnam-based dry bulk shipping company operating a 21,990 DWT fleet comprised of six geared bulk vessels specializing in providing ocean transportation services for raw material input items such as coal, ore, grain, lumber, cement, steel and fertilizer throughout the Southeast Asia region.

    After China, the primary sources of future bulk demand are India, Brazil and Vietnam. The region contains three of the four global BRICs (Brazil, Russia, India, China), seen by economists as the future growth leaders in the world economy.

    The Asia Pacific region accounts for 60% of the world's population and almost 70% of world sea-borne trade in bulk commodities.

    In order to meet anticipated continued growth in demand from an expanding base of overseas and domestic Vietnamese customers, as well as to expand the geographic regions that it can service to include potentially more profitable routes in East and South Asia.

    The Company's Vietnam-based operations are located in Ho Chi Minh City, which together with the surrounding areas, accounts for more than seventy percent of Vietnam's total annual cargo traffic.

    Pink Sheets TRTH

    Current Price $0.18

    Current PE 4.19

    Revenue Growth 148%

    Target Price 2013 $3.40

    HCM Rating Strong Buy

    Europe

    Spot rates from Shanghai to North Europe, North America and the Mediterranean dropped this week, indicating a weakening market, according to the Shanghai Containerized Freight Index.

    Separately, Drewry Supply Chain Advisors' weekly World Container Index reported that its Shanghai-Rotterdam spot rate index slipped 3 percent to $2,928 per 40-foot-equivalent unit. It was the fourth consecutive drop in the index, and the seventh in eight weeks since the index hit $3,521 on July 5.

    The SCFI measures spot market rates on a week-to-week basis. The index of spot rates from Shanghai to the North European ports of Hamburg, Rotterdam, Antwerp, Felixstowe and Le Havre fell to $1,324 per 40-foot-equivalent unit, a drop of 7.8 percent.

    Declines also were posted to the U.S. West Coast (to $2,485, down 3.2 percent), the Mediterranean to $1,371, down 3.9 percent), and the U.S. East Coast (to $3,741, down 3 percent).

    Best Buy DryShips Inc. (NASDAQ:DRYS)

    DryShips Inc. (DryShips) is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, it owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, it owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), and OceanFreight, was completed.

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