SOURCE: The Bedford Report
February 07, 2011 08:46 ET
Are Investors Listening to the Baltic Dry Index?
The Bedford Report Provides Analyst Research on DryShips & Eagle Bulk Shipping
NEW YORK, NY--(Marketwire - February 7, 2011) - In the last year, an oversupply of ships and mediocre demand has severely damaged the Drybulk Shipping industry and forced companies to search elsewhere for revenues. The traditional indicator of the industry's health, the Baltic Dry Index, has plummeted in 2011 as demand for dry-bulk shipping has fallen alongside commerce levels. The Bedford Report examines the outlook for companies in the Shipping Industry and provides research reports on DryShips, Inc. (NASDAQ: DRYS) and Eagle Bulk Shipping, Inc. (NASDAQ: EGLE). Access to the full company reports can be found at:
The Baltic Dry Index has been on the slide since October. According to data from the Baltic Exchange in London, the index fell to 1,064 last week. The index has lost more than 72% of its value in the last month or so and having retreated to a 2-year. The index slipped hard in January as flooding in Queensland -- the richest coal producing province in Australia -- shut down mines and curbed volumes of cargo to be delivered.
Over that same period, average rates for short-term charters of the largest dry bulk carriers, called "Capesize" ships, have fallen from $46,284 a day to $10,285 in the same period -- a ghastly statistic considering most Capesize ships incur operating costs of at least $15,000 a day.
The Bedford Report releases regular market updates on the Shipping Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.
DryShips, Inc. has aggressively moved into the oil rig industry. Last month the company completed a private placement of shares worth a total of $500 million in its wholly-owned subsidiary Ocean Rig UDW Inc.
Speculation that the Suez Canal might be shut down due to the political unrest in Egypt sent shares of oil tanker stocks -- DryShips included -- surging earlier this month. About 4.5% of the world's oil production passes through the Suez Canal each day, which is controlled by the Egyptian military and operated under the auspices of the government-owned Suez Canal Authority
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