Dry Bulk Shipping Rates to Fall Even Lower in 2012 (DRYS, NM, DSX, EGLE, EXM)
December 30, 2011 by Paul AusickThe average day rate in 2012 for a capesize ore carrier — the largest in the world’s fleet — is expected to be about $15,000. That’s down from an average of about $15,640 in 2011 and more than $33,000 in 2009. In 2008, day rates topped $200,000 for a time.
The low rates have pushed down shares in dry bulk shippers like DryShips Inc. (NASDAQ: DRYS), Navios Maritime Holdings Inc. (NYSE: NM), Diana Shipping Inc. (NYSE: DSX), Eagle Bulk Shipping Inc. (NASDAQ: EGLE), and Excel Maritime Carriers Ltd.(NYSE: EXM), which are down between -37% and -82% for the past year.
Ships ordered during the 2008 heyday are being delivered now, even as iron ore cargoes are also declining. Iron ore shipments are expected to grow by 2.5% in 2012, while shipping capacity will grow nearly 10%.
Until the global economy picks up, shipping companies face a grim future.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.