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http://seekingalpha.com/article/1888...x?source=hp_wc
Like an anchor, Baltic Dry Goods Forward Freight Agreements (future hedging contracts on shipping rates) are sinking for cape-sized ships (as big as they come for bulk cargo ships). This is in spite of analysts predicting huge rate increases and profits for everybody for the same time period.
Many new ships are being built, and will soon be chasing the little bit of freight left. Add to that, few ports can handle these monsters, and typically there are 17 to 55 of these ships waiting to be offloaded at these few ports that can handle them. Typically, they sit idle for a time equal to the sailing time.
Note that in May 2008, cape-sized rates were $230,000 per day, almost 10 times higher than today's prices. Ouch! Notice how the cape rates are now correlated with crude oil prices.
Crude prices have risen, by BDGI stays flat.
Like an anchor, Baltic Dry Goods Forward Freight Agreements (future hedging contracts on shipping rates) are sinking for cape-sized ships (as big as they come for bulk cargo ships). This is in spite of analysts predicting huge rate increases and profits for everybody for the same time period.
Many new ships are being built, and will soon be chasing the little bit of freight left. Add to that, few ports can handle these monsters, and typically there are 17 to 55 of these ships waiting to be offloaded at these few ports that can handle them. Typically, they sit idle for a time equal to the sailing time.
Note that in May 2008, cape-sized rates were $230,000 per day, almost 10 times higher than today's prices. Ouch! Notice how the cape rates are now correlated with crude oil prices.
Crude prices have risen, by BDGI stays flat.
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