*Real Time Notes, Updated Frequently Today I am attending the second day of Dahlman Rose & Co’s Global Transportation Conference, and will be speaking with and listening to presentations from several trucking company executives from companies including: Werner Enterprises, Inc. (NASDAQ: WERN), Con-Way, Inc. (NYSE: CNW), Arkansas Best Corporation (NASDAQ: ABFS), Celadon Group Inc. (NASDAQ: […]
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Shipping Sector
*Real Time Notes Updated Frequently BNSF: Thomas Hund, Executive VP & CFO I am currently attending this conference and will be doing some random live updates throughout the day. I am currently listening to a presentation by BNSF’s Thomas N. Hund, Executive Vice President & Chief Financial Officer. He is presently discussing the important of […]
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 […]
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 […]
Capesize rates have come under considerable pressure over the past week with forward contracts losing roughly 14% of their value over concerns on industry fundamentals. Despite what has already been 5 consecutive days of declines for capesize rates, industry experts believe this week could bring even more downward pressure. According to Lloyd’s List, a leading […]
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 […]
The market generally accepts that over the months’ ahead companies will begin restocking dwindling inventories. In fact Goldman Sachs recently updated their 2H09 GDP forecast to 3.0% from 1.0% on the back of expected inventory restocking. This will undoubtedly have a positive effect on US industrial Production, manufacturing, and ultimately US GDP growth for a […]
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 […]
Chinese exports continued struggling in June falling 21.4% y/y compared to analysts’ estimates of 21.0%, and a 26.4% y/y drop in May. Continued declines in exports are being offset by increased domestic demand, which is heavily bolstered by the country’s stimulus package. According to Bloomberg, China’s Premier Wen Jiabao believes the foundation for China’s economic […]
As I highlighted in my column on TheStreet.com on Monday shipping stocks will be highly susceptible to any major economic news impacting market’s views on the long-term outlook. This mornings consumer confidence number was proof of that, tumbling to 49.3 compared to 54.8 last month. Both the present situation index and the future situation index […]