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The worst commodity shipping market in 26 years may persist next year as an oversupply of...

The worst commodity shipping market in 26 years may persist next year as an oversupply of vessels continues to curb ship owners’ ability to boost charter rates, according to shipbroker Clarkson. Dry bulk shipping rates have plunged 71% since Nov. 28, with both capesize and panamax shipping rates declining for 16 straight days. Baltic Dry index -58.5% YTD.
Comments (7)
  • This is a stock / sector to watch - not to buy unless and until we see a turn. China is showing signs of iron ore and coal imports increasing - which company will survive and thrive ?
    20 Dec 2012, 07:10 PM Reply Like
  • This sector is so damaged by oversupply of ships it will definitley be many years before day rates get back to making money and raise the profit margins. Way too many ships that were ordered during the boom times, and they came into service with no demand and low shipping rates. I've felt a lot of pain with Paragon and Dryships!
    20 Dec 2012, 08:40 PM Reply Like
  • me too
    21 Dec 2012, 07:51 AM Reply Like
  • One stock is helped a little, and being that their fleet is 'on contract', all leased, I am hoping the stock will recover somewhat. At least maintain the dividend. When all are meek and selling... I dunno, but I am holding my TEC & NMM stock. It is a sick industry not sick companies. If they keep paying a dividend over 10%, and stock stops going down here, I can hold and be even, but much lower, first loss is best loss.
    Capt Brian
    The Lost Navigator
    This cap'n ain't goin' down with this ship.
    20 Dec 2012, 10:28 PM Reply Like
  • The BDI clearly is a disaster. I can't believe the number of traders that are looking for a bottom in DRYS or EXM... However, ULTR might be worth looking at. it isn't your regular Dry Bulk stock. In fact, it's more like KEX which plies the US's inland waterways. ULTR moves goods around Brazil (they use their waterways the same way we use rails)..They also operate port tugs and some drilling rigs etc...I like the inland shipping aspect a lot. Check out the Brazil ETF here : and the ULTR chart here: Brazil seems to be growing and ULTR seems to be playing tag with the 1.70/1.80 level..In fact, it may be an inverse H&S with a target of about 2.40. Worth watching IMO.
    20 Dec 2012, 11:08 PM Reply Like
  • How about the KIM PF DryBulk Ship Fare SA Deriv 1 (KR5101292484.KS);c= ?


    Is there a Dry Bulk ETF?
    21 Dec 2012, 10:42 AM Reply Like
  • "SEA" is the dryship ETF.
    23 Dec 2012, 04:18 AM Reply Like
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