It's Gotta Be Shipped
We have Nattered about the dry bulk and oil shippers before.. here.
Available credit has contracted while credit and fuel costs have increased, causing ship building orders to be cancelled
The biggest shipbuilding boom in history collided with the largest credit-market losses ever, undermining forecasts for a plunge in freight rates.
The Bloomberg Dry Ships Index, which includes 12 shipping companies, has gained 69% in the past year, compared with a loss of 7.8% for the SP500.
The stocks have been propelled by shipping rates, which reached a five-month high on May 9 and are 7.3% below the record reached on Nov. 13.
The Baltic Dry Index, a measure of rates, has risen 58% in the last year as an index tracking the number of cargo ships under construction has fallen 21% in that time.
Based on the current orders for 2,561 new cargo ships, shipping rates are expected to decline 56% during the next three years, futures markets show.
The loss or delay in deliveries of about 250 cargo ships, or 10% of orders,
will tighten the supply of vessels and support rates when demand from China and India for everything from soybeans to coal has never been greater.
Hattip to Bloomberg
Available credit has contracted while credit and fuel costs have increased, causing ship building orders to be cancelled
The biggest shipbuilding boom in history collided with the largest credit-market losses ever, undermining forecasts for a plunge in freight rates.
The Bloomberg Dry Ships Index, which includes 12 shipping companies, has gained 69% in the past year, compared with a loss of 7.8% for the SP500.
The stocks have been propelled by shipping rates, which reached a five-month high on May 9 and are 7.3% below the record reached on Nov. 13.
The Baltic Dry Index, a measure of rates, has risen 58% in the last year as an index tracking the number of cargo ships under construction has fallen 21% in that time.
Based on the current orders for 2,561 new cargo ships, shipping rates are expected to decline 56% during the next three years, futures markets show.
The loss or delay in deliveries of about 250 cargo ships, or 10% of orders,
will tighten the supply of vessels and support rates when demand from China and India for everything from soybeans to coal has never been greater.
Hattip to Bloomberg
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