Skip to content

Archive:

Shipping Sector

Cantor Raises Price Target for DSX

Cantor Fitzgerald raised the price target for Diana Shipping (DSX) to $18 from $16 based on higher rechartering assumptions.  Cantors presently holds a ‘Buy’ rating on DSX.  DSX is one of the few shippers within the dry bulk space on which I hold a relatively constructive view.  Compared to other shippers the company has a […]

Finding a Complement to the BDI May Lie in the Rails…

Carrying over from a theme I mentioned earlier this week in my column on thestreet.com, I began contemplating what frequent transportation index, if any,  would be a good complement the BDI as a forward looking indicator toward the global economy. My goal was to find something that could perhaps help factor out the impact of […]

Is a Falling Greenback Leading to Smooth Sailing for Shippers?

I have received several inquiries regarding the recent divergence between the BDI and my dry bulk shipping index (DBSI), and thought I should touch on the subject.  First and foremost I believe that a large portion of the divergence can be explained as a US dollar story.  Also, recent weakness has been mostly isolated to […]

Norton Rose Shipping Industry Survey Paints Bleak Picture

Lloyds List, a leading maritime and transport news terminal, reported the results of the first major shipping industry sentiment survey since the beginning of the economic downturn that was conducted by Norton Rose.  The survey “has painted a bleak picture of the sector with the vast majority of companies predicting that economic conditions will get […]

Lehman’s Impact on the BDI & Shipping (Then & Now)

In retrospect, the widespread panic that engulfed the world’s financial markets after the fall of Lehman Brothers may have been somewhat overblown considering the actual long-term impact of the event, which was significantly mitigated through innovative monetary policy.  But at the time, this did not prevent an almost immediate shut-down of credit markets around the […]

BDI Shows Labor Day Gains, But Capesize Rates Still Falling

The Baltic Exchange’s Baltic Dry Index (BDI) rose by 0.6% today, reaching its highest level since 8/24.  But, these gains have come on continued weakness in the Capesize sector where rates have fallen for eight consecutive days, losing an additional 2.1% this morning.  Rates on smaller vessels, especially panamax, have fared much better over recent […]

US Railroad Activity Not a Bright Spot for Shipping Rates

As seaborne shipping acts as the bridge for global trade, the US’s railroad and trucking systems are the backbone of domestic bulk transport. It goes without saying that at some point the majority of goods imported to or exported from the US likely find themselves traveling on a rail car or truck before reaching their […]

Drop in Chinese Lending Leads to Declines In Both The Shanghai Composite & The BDI

A reader recently brought to my attention the fact that the BDI and the Shanghai Composite Index both appeared to have peaked from interim-term highs at the beginning of August (see chart).  After looking more closely at the data I quickly began to realize the significance of this relationship and its implications on shipping.  Let […]

Unusual Rally in DryShips (DRYS)

I noticed an unusual rally in DryShips (DRYS) today, which closed up an astonishing 13.6%.  At first I attributed this advance to positive sentiment stemming from better than anticipated new home sales, coupled with speculation over the company’s earnings data and a higher BDI, but after looking at the performance of the rest of the […]