SOURCE: The Bedford Report

The Bedford Report

March 10, 2011 08:46 ET

Freight Rates Continue to Haunt Dry Bulk Shippers

The Bedford Report Provides Analyst Research on DryShips & Eagle Bulk Shipping

NEW YORK, NY--(Marketwire - March 10, 2011) - The bulk and tanker sectors of the shipping industry have been in the headlines for all the wrong reasons this year. Both sectors have been underperforming as freight rates remain under pressure based on too many available ships and not enough demand to match supply. Compounding the crisis, Chinese demand for raw materials has dropped dramatically as the nation tries to prevent its economy from growing too quickly. 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:

www.bedfordreport.com/2011-03-DRYS

www.bedfordreport.com/2011-03-EGLE

According to the Baltic Exchange the average rate for a "Capesize" ship -- the largest vessels tracked by the Baltic Dry Index -- has fallen to an average of $5,910 a day. This stat is disconcerting as most Capesize ships incur daily operating costs of between $7,000 and $10,000.

As of January, DryShips' fleet of 39 dry bulk carriers consisted of 7 capesize ships. DryShips has made a move into the oil rig industry in an attempt to offset poor dry bulk results. Recently DRYS completed a private placement of shares worth a total of $500 million in its wholly-owned subsidiary Ocean Rig UDW Inc.

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.

Last week Eagle Bulk Shipping reported fourth quarter net income of $3.03 million or $0.05 per share, compared to $2.19 million, or $0.04 per share, for the comparable quarter in 2009. Although Eagle Bulk grew its fleet by 46 percent in 2010, the company's CEO Sophocles N. Zoullas maintains that the fleet remains "close to 100% utilization."

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer.

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