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).

Dry Bulk Shipper Anomaly in Spot Pricing Creates Buy Opportunity

The charter numbers quoted actually made it into the Journal of Commerce, but the JOC never understood the freight futures market, now, did they?

There are very slight premiums for 2 Q 2008 settle on paper contracts,but overall, 2008 presents parity withs spot, at best, for Panamaxes and Capes. But do you really think that George Economou will put his fleet out on time charter to capture these numbers? He put three ships on period last Oct/ Nov at the peak. Out of thirty something, maybe forty in the fleet. The forward curve is downward sloping for a reason guys.