Drybulk shipping rates continue to move higher, led by capesize rates


Drybulk shipping rates are up big during past five weeks and rose again overnight.

The Baltic Dry Index rose 3.2% overnight and has surged 49% since Feb. 12; the BDI has gained in 24 of the last 26 sessions, led by a 211% rise in capesize rates.

Capesize rates climbed 6.9% (or $1,664/day) overnight to $25,659/day, while panamax rates rose $4/day to $9,019/day and supramax rates added 0.4% ($48/day) to $12,598/day.

Related drybulk equities include DRYS, GNK, PRGN, DSX, FREE, ULTR, EGLE, NM, NMM, SBLK, KEX, SB, SINO, BALT, SHIP, DCIX.

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Comments (6)
  • J Mintzmyer
    , contributor
    Comments (8111) | Send Message
     
    Note to editors:

     

    DCIX is a container company (i.e. NOT affected by bulk rates) and FREE/SHIP are defunct entities.

     

    Otherwise a good update.
    20 Mar 2014, 11:38 AM Reply Like
  • lahdesa
    , contributor
    Comments (115) | Send Message
     
    If you wonder why DRYS is reacting rather mildly, remember that their Capesize fleet is under contract and mainly at higher rates than the current spot rates.
    Their Panamax fleet is considerably bigger and operating on the spot market, and Panamax rates are just inching up. I would guess that GNK is eager to obtain marginally better Panamax freights. No idea of the Panamax demand situation.
    20 Mar 2014, 12:01 PM Reply Like
  • sraphael
    , contributor
    Comments (371) | Send Message
     
    Hopefully drys will cancel their pending contracts for three ships supposedly behind schedule in Chinese shipyard. Nothing like reducing potential supply of ships in a market like this. Also watch the scrapping tonnage numbers. The world fleet is really old. If scrapping increases a highly leveraged company likedrys will rocket up in price.
    20 Mar 2014, 03:32 PM Reply Like
  • thumper52
    , contributor
    Comments (3) | Send Message
     
    free seas is a bad investment.
    20 Mar 2014, 09:03 PM Reply Like
  • starcorral
    , contributor
    Comments (1633) | Send Message
     
    SO three months ago we read that the dry bulk shipping rates were in the gutter running toward the drain. That got debunked quickly. Navios - according to the "analysts" stumbled through 2013 3&4Q on a course of doom and gloom. New contracts on modern ships? Smart management knows when to move. Ever wonder why American ordered billions upon billons of dollars worth of new aircraft when the many were planning to attend the funeral? Who's laughing now?
    20 Mar 2014, 11:03 PM Reply Like
  • PairofdiceBird
    , contributor
    Comments (15) | Send Message
     
    A different perspective on FREE:

     

    http://seekingalpha.co...

     

    I'm not sure if anything has fundamentally changed since this time. I'm no expert on the company, so your thoughts are welcome.
    21 Mar 2014, 09:59 AM Reply Like
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