Here is how the various Baltic Indices fared for the week ending May 22.
Baltic Dry Index (BDI): +9.5%
Baltic Capesize Index (BCI): +24.8%
Baltic Panamax Index (BPI): -7.3%
Baltic Supramax Index (BSI): +4.7%
Baltic Handysize Index (BHSI) +5.6%
Baltic Dirty Tanker (BDTI): +1.5%
Baltic Clean Tanker (BCTI): +1.5%
It looks like the big boys, Capesize, carried the load for dry bulk last week. The Chinese are continuing to stock up on iron ore while ore prices are cheap. For those keeping score the BCI is now up 420% from its November lows and back to the rate of the end of September 2008. In those days the stock of Capesize owner Genco Shipping was trading for $33 per share in the middle of its decline to $7.
Note the dichotomy between the Capes and the PMs. There is a message there…somewhere. Either the Capes are leading the market further upward…or the PMs are showing signs that the recent rally is about to fade. The guy who makes the million dollars is the one who can answer that question.
Crude and product tanker rates remain painfully low with no relief in sight. They need the world to start using more petroleum energy! New tanker supply coming online without relief until the single hull ban in 2010 means tanker rates could be down for quite a while. That said, I picked up a few shares of DHT this week on the belief/hope they can maintain their dividend through the current tough times for tankers.
Baltic Indices for last week
Here is how the various Baltic Indices fared for the week ending May 22.
It looks like the big boys, Capesize, carried the load for dry bulk last week. The Chinese are continuing to stock up on iron ore while ore prices are cheap. For those keeping score the BCI is now up 420% from its November lows and back to the rate of the end of September 2008. In those days the stock of Capesize owner Genco Shipping was trading for $33 per share in the middle of its decline to $7.
On the slide by the BPI I take this quote from the ton mile trader:
Crude and product tanker rates remain painfully low with no relief in sight. They need the world to start using more petroleum energy! New tanker supply coming online without relief until the single hull ban in 2010 means tanker rates could be down for quite a while. That said, I picked up a few shares of DHT this week on the belief/hope they can maintain their dividend through the current tough times for tankers.