2. China imported record levels of iron ore in 2009. This is a strategic dry-bulk shipping commodity for Diana Shipping. The key take away is that this spike in importing has congested the country’s vital seaports, which in turn increases pricing levels.
3. Diana shipping rents out ships on multi-year contracts for risk management purposes given the volatile industry and to better manage its operating cash flow.
4. Diana’s low financial leverage allows the firm to better handle downturns in the shipping spot market like we have seen in the last few years.
5. Diana Shipping management has been more conservative and at this point holds a much lower debt-to-capital ratio than its competitors giving it a strategic advantage.
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We have no official buy or sell position on Diana Shipping (NYSE:DSX) but heavily encourage a positive discussion to see all points of view be they bullish, bearish, and or something else.