Baltic Dry Index

Quote from CET:

Part of the reason that the BDI has been falling is the new shipping capacity that has come into service, which has negatively impacted rates. You really also need to look at shipping volumes to get a clearer picture of the situation.
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and the upshot is?? I'm guessing that it still looks TERRIBLE!! What idiot would expand his business in the USof A? The leadership is like Venezuela's, you build it and they will come [for your money]...
 
Quote from morganist:

Maybe it has something to do with the Somalian pirates.
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If they're doing OK, maybe I'll join, then again, maybe a band of traders are pirates already
 
and the groupthink of this is that the "worse things get the more the central banks will flood the system with liquidity". A sort of heads we win, tails you lose mentality.
 
A lot of shipping companies have taken a hit. Looks like its about a good time to buy some of these companies that have lost 80 or 90% of their value. Just make sure you buy companies who can survive longer than the other guys who are going out of business, and before you know it, you could have a 5 bagger or better.

FRO is looking pretty good at $5. They have restructed their debt and looking to be trending up. Could be $20 in 12-18 months. Same thing happened in 2002. They got beat down to $3 and in a year they were at $20. Another year they were at $60 at the the same time paying many quarterly divys of $1.50 and some divys as high as $8+ Although they cut the dividend last quarter it makes good financial sense for the company and this could be one of those stocks you want to buy and hold for a while.
 
Quote from morganist:

When you say something is up. You are right. I get invited to dinners and such like with polticians and elites sometimes and the general gist I get is the whole world is a complete mess right now.
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Must be nice to be in the 1 percent crowd !
Just live large and laugh at the rest of us.
 
Quote from syswizard:

Must be nice to be in the 1 percent crowd !
Just live large and laugh at the rest of us.
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So untrue. I don't have to pay. I just get invited. The fact is I am the economist you want if you want change. Have a look at my work. I invent new tools that are better for everyone.
 
I have been watching the BDI as well and watching DRYS along with it. The market has shrugged off the massive fall of the BDI, the stock hasn't really been hit on this last BDI leg down. I take this as a sign of a bottoming. The other reason I like DRYS a lot is because of their drilling business (they own and operates 9 offshore ultra deepwater drilling units comprising 2 ultra deepwater semisubmersible drilling rigs and 7 ultra deepwater drillships.) The drilling business is profitable and may be what they need to weather the storm until the scrapping of old ships eats up enough of the oversupply to get these rates to climb some. Another positive I see is that since DRYS is based out of Greece all the negative news has been absorbed and barring another issue arising the market may assume the worst days are behind Drys. Thoughts?
 
Shipping News

In one of the more obvious impacts of Trump's trade war, demand for container shipping is down. Announcing decent profits today, the Danish shipping giant Maersk predicted a fall in global container trade over the next couple years of anywhere between 0.5% and 2%. Maersk also said it plans to step up competition with UPS and Fedex. Reuters
 
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