The Baltic Dry Index (BDI) has fallen 28% from its recent high on May 26th, indicating to some weakness in the global economy. The BDI tracks the prices of bulk carriers which are the life-blood of global trade carrying everything from iron ore to grain. While the 28% decline may seem ominous, the BDI is […]
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Trade, the life blood of the global economy, has begun rebounding nicely since the trough of the global economic crisis. But, January’s US trade data unexpectedly displayed a decline in both exports–the first decline in nine months–and imports, leading to a smaller US trade deficit, but also implying a potential slowdown in global trade. As […]
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 […]
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 […]
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 […]
A potential record US harvest could help buoy rates for small to mid-size ship rates. What was a relatively mild and wet spring and summer has created conditions for what is setting up to be one of the nation’s biggest harvests. The U.S. Department of Agriculture is projecting a total corn crop of 12.954bn bushels, […]
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 […]
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 […]