skipper54

Staying Afloat: A Primer on the Shipping Industry

I personally have no objection to the teaser given the fact that Zachary opens his article with some helpful guidelines which are relevant whichever way you feel about individual companies.
The temptation to purchase dry bulk shares is huge given their low low price (and just look at the massive increases seen today) however as Zach says 'there is a reason these shares are so low'. Dividends may well be scrapped and/or the companies could go out of business. Bear in mind that a fleet of bulkcarriers worth US$2 billiion six months ago may be worth around $500 million today; and that a ship today (and for the foreseeable future) is unable to generate sufficient income to pay its own running costs yet alone service management overhead and debt (in some companies, very considerable debt). So any shipping company that has first class (define first class!!) forward contracts and relatively low debt is probably a safe bet. For the rest I go along with Elliot - you need nerves of steel.