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 […]
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egle
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 […]
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 […]
Forward Freight Agreements (FFAs), especially for capesize contracts, appreciated significantly today leading to strong trading in the dry bulk sector. BDI FFA Curve Source: Imarex BCI FFA Curve Source: Imarex Market and Sector Performance:Source: Bloomberg, my calculations, Capital Link Shipping
As I have discussed in great detail in my TheStreet.com articles; I believe the recent rally in the Baltic Dry Index (BDI) cannot be sustained, and we are likely to see a pullback in the index; along with dry bulk shipping and mining sector stocks. The BDI’s rally has been driven almost exclusively through China’s […]