Baltic Dry Index Sees Worst Quarter in 14 Years as Oversupply and Low Demand Continues to Plague Industry
October 12 2012 - 8:20AM
Marketwired
After an impressive start to the year shipping stocks have
struggled as concerns regarding slowing economies in China and
Europe have seen iron ore and coal shipments fall. The Guggenheim
Shipping ETF (SEA) has fallen 15 percent in the last 6 months,
after surging 25 percent in the first quarter. Five Star Equities
examines the outlook for companies in the Shipping Industry and
provides equity research on Diana Shipping Inc. (NYSE: DSX) and
Excel Maritime Carriers Ltd. (NYSE: EXM).
Access to the full company reports can be found at:
www.FiveStarEquities.com/DSX
www.FiveStarEquities.com/EXM
The Baltic Dry Index (BDI), a measure of costs to ship dry-bulk
commodities such as grain, coal and iron ore, has fallen by 50
percent this year. The BDI recently posted its worst quarter in 14
years as oversupply and weak demand has continued to plague the
industry. According to data collected by Bloomberg from the Baltic
Exchange, during the third quarter the index's average reading of
848 was the lowest since the third quarter of 1998.
Numbers from the world's largest shipbroker, Clarkson PLC, have
shown that the largest fleet ever is competing for business in the
current period, despite slowing demand from China.
Five Star Equities releases regular market updates on the
Shipping Industry so investors can stay ahead of the crowd and make
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Diana Shipping's vessels are employed primarily on medium to
long-term time charters and transport a range of dry bulk cargoes,
including such commodities as iron ore, coal, grain and other
materials along worldwide shipping routes. The company recently
announced it has agreed to acquire a newly-built Post-Panamax dry
bulk carrier for a purchase price of US$24.6 million.
Excel is an owner and operator of dry bulk carriers and a
provider of worldwide seaborne transportation services for dry bulk
cargoes, such as iron ore, coal and grains, as well as bauxite,
fertilizers and steel products. The company on October 1, 2012,
exercised its option to defer an installment of $24.3mn due on that
date.
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