skipper54

The Gurus and the Little-Known Shipping Metric

The BDI does not reflect the earning capacity of the companies mentioned in this posting - it gives a very rosy picture of the freight market but in fact only owners in the Panamax and Capesize are being benefited - and that is solely due to the pressure on space for iron ore into China. I would suggest that the movement of steel across the oceans is a much better guide to the healthiness of the quoted companies - and the situation with steel is pretty dire and still not looking any better. Unless of course the Chinese start moving huge volumes (they must be doing something with all that iron ore, after all)........I am bearish on drybulk at least until October.