TBS International: Sailing to Success

| About: TBS International (TBSI)
This article is now exclusive for PRO subscribers.

TBS International Limited (NASDAQ:TBSI) is a ocean transport shipping company for breakbulk, bulk, RoRo, container and project cargo, portside inland logistics, with comprehensive support services for ocean transportation.

With global growth on the uptrend, along with tanker rates rising also, it shows that shippers like TBSI will continue to benefit. TBSI’s PE ratio is currently reasonably valued at 17. Shipping prices are in direct relation to the strong demand in the commodities markets, and it is very evident that demand is outpacing growth in shipping capacity. A tripling in shipping costs starting 2006 has shown that the commodity super-cycle remains in place. The global economy should continue to grow through the rest of 2007 with no sign of a significant cyclical slowdown. Although the prospects for the U.S. economy are not so good, the positive growth forecasts rest of the world are in place we see.

TBS International Limited, an ocean transportation services company, offers shipping solutions through liner, parcel, bulk, and vessel chartering services. Its liner, parcel, and bulk services primarily carry steel products, salt, sugar, grain, fertilizers, chemicals, metal concentrates, aggregates, and general cargo. The company also provides short and long-term time charters that offer its customer an alternative means to contract for ocean transportation of cargoes and make the carrying capacity of entire vessels available to its customers. In addition, it provides frequent regularly scheduled voyages in its network, as well as cargo scheduling, loading, and discharge for its customers. TBS operates its business around trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa, and the Caribbean. As of March 31, 2007, its controlled fleet consisted of 33 vessels. The company serves industrial shippers in various markets, including mining companies, steel manufactures, trading companies, heavy industry, industrial equipment enterprises, and construction companies.

TBS International was founded in 1993 and is based in Hamilton, Bermuda.

Disclosure: Author has a long position in TBSI