Seeking Alpha

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%.
Comments (5)
  • cm1701
    , contributor
    Comments (52) | 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, 11:17 AM Reply Like
  • oldngraydad
    , contributor
    Comments (14) | Send Message
     
    I just went with DCIX but only one analyst covers it.
    15 Jan, 09:04 PM Reply Like
  • cm1701
    , contributor
    Comments (52) | 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, 10:39 AM Reply Like
  • cm1701
    , contributor
    Comments (52) | 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, 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, 08:13 PM Reply Like
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