In a very interesting recent transaction in the dry bulk market, Sea Traders of Greece has acquired at auction in China eight modern dry bulk vessels, three kamsarmaxes and five supramaxes, for approximately US$ 68 mil in total, or at approximately $8 mil per vessel – wholesale price – for vessels with slightly lower five-year average age. The vessels … [Read more...]
Turbulent Waters in the Country of the God of Shipping
In Greek mythology, Poseidon was the god of the waters and oceans, and bearing a trident, he was riding imperially in a sea-chariot or playfully accosted by dolphins about his realm. He was the one to grant calm seas and safe passage to ships, but his menace could also bring turbulent seas and shipwrecks; when the ancient city of Athens was looking for a guardian god, … [Read more...]
Smart Investments in Shipping
At a recent shipping conference, we were asked to present on the topic of smart investments in shipping given the present phase of the business cycle. The shipping industry is ever changing and the so-called investment thesis for shipping investments can change structurally in much shorter periods than in other industries; what looked appealing a year ago can be facing … [Read more...]
Baltic Dry Index has been flirting with all time lows – Isn’t that good news?
Visiting with clients in shipping during recent trips to Europe, one can positively see the angst and anguish emanating from the state of the dry bulk market. Most segments of dry bulk vessels for several months now barely earn enough to cover their operating expenses and this has been worrying to shipowners active in the sector. Back-of-the-envelope estimates, average spot … [Read more...]
Short Thoughts on the Dry Bulk Market
The last couple of weeks have brought the slimmest hope that springtime may be forthcoming for the much beleaguered dry bulk market; we are not talking about signs of an impending great recovery, but at least the dry bulk indices have stopped dropping and have shown marginal improvement; the widely-observed Baltic Dry Index (BDI) established an all-time low point on February … [Read more...]