Shippers see early strength as dry bulk rates show year's first gain


Shippers are on the move after dry bulk shipping rates finally show their first gain of the year.

The Baltic Dry Index shows a four-point increase due to gains in capesize rates, which rose $280 to $13,168/day, while panamax rates fell $54 to $12,534 and supramax rates fell $65 to $12,364/day.

Before today's gains, the BDI had plunged 40% YTD in its worst start of the year in 30 years.

FREE +7.4%, EGLE +7.3%, GNK +5.5%, SB +4.3%, DRYS +4.1%, NM +3.4%, SBLK +2.8%, SHIP +2.5%, ESEA +2.3%, PRGN +2.1%, DCIX +2%, GSL +1.9%, NMM +1.3%, DSX +1.3%, DAC +1.1%, KEX +0.8%, ULTR +0.3%, BALT -1%, SINO -0.8%.

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Comments (5)
  • cm1701
    , contributor
    Comments (72) | Send Message
     
    I am long $SBLK for a variety of good reasons... I encourage anyone that's interested in the DryBulk stocks to do some due diligence on this one- New Fuel efficient ships, an improving balance sheet, and Howard Marks of Oaktree Capital still holds shares. I am betting on slow and steady growth for this particular shipper, and I buy on any BDI weakness (such as we had at the start of the year).
    15 Jan 2014, 11:17 AM Reply Like
  • oldngraydad
    , contributor
    Comments (24) | Send Message
     
    I just went with DCIX but only one analyst covers it.
    15 Jan 2014, 09:04 PM Reply Like
  • cm1701
    , contributor
    Comments (72) | Send Message
     
    Watch $SBLK. Another good % up move today. I am long on this particular well managed bulk shipper. Good luck to you! By the way, Jim Cramer likes DCIX, so perhaps that's a good thing.
    16 Jan 2014, 10:39 AM Reply Like
  • cm1701
    , contributor
    Comments (72) | Send Message
     
    Sorry, My error- the Cramer fav might be Diana Shipping DSX not Diana Container Ships DCIX. Bulk shipping and container shipping are somewhat different and have different cycles/markets.

     

    Keep in mind Maersk has moved away from a focus on Container shipping- not sure if they've changes positions since this late 2012 article:

     

    http://on.ft.com/K6Rw6s

     

    Be careful here.
    16 Jan 2014, 12:07 PM Reply Like
  • kirscolb
    , contributor
    Comment (1) | Send Message
     
    Balance sheet looks good for DSX, PRGN, DCIX, EGLE and SBLK. Now wait to see what the market says. Good Luck.
    2 Feb 2014, 08:13 PM Reply Like
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