bdp1ConsultingLtd

Dryshippers: A Buy or a Sell?

Absolutely these indices and the underlying rates are very volatile. The shipping market has lost a lot of confidence- as evidenced by forward rates, in swap prices, have also come down.

But, I am bullish since I don't see any change in the fundamental demand picture. And, as pointed out, seasonality would suggest a pickup in Q4. Short term- various dislocations, yes, but China has not stopped producing steel. For stock traders, the shipping stocks present great zigs and zags because of the underlying volatility even in the context of a longer term trend (whether that be up, or down).