A Deutsche Bank analyst says he thinks the drybulk shipping market may have bottomed, a sign that global trade might soon improve. THE OPINION: The Baltic Dry Index, which measures activity on major shipping lanes throughout the world, posted its first gain Friday in nearly two months. The index is a key measure of global trade because it indicates how well shipments of everything from coal to cement are moving. The gain was the first gain since May 26.
Analyst Justin Yagerman said in a client note Friday that rates for Capesize and Panamax vessels, two kinds of drybulk ships tied heavily to coal and iron ore trade, are up "considerably" -- both of them fetching rates more than twice their operating costs. Coal and iron ore are used in steelmaking. Coal is also used to generate electricity.
Capesize vessels are named because they are too big to fit through the Panama or Suez Canal and must instead navigate around the Cape of Good Hope or Cape Horn to travel between oceans. Panamax vessels are the largest ships that can fit through the locks of the Panama Canal.
THE STOCKS: Some drybulk shipping stocks gained Friday despite a lower broader market. Diana Shipping Inc. gained 27 cents, or 2.1 percent, to $13.37. Genco Shipping & Trading Ltd. was up 25 cents, or 1.6 percent, at $16.38.
Analyst Justin Yagerman said in a client note Friday that rates for Capesize and Panamax vessels, two kinds of drybulk ships tied heavily to coal and iron ore trade, are up "considerably" -- both of them fetching rates more than twice their operating costs. Coal and iron ore are used in steelmaking. Coal is also used to generate electricity.
Capesize vessels are named because they are too big to fit through the Panama or Suez Canal and must instead navigate around the Cape of Good Hope or Cape Horn to travel between oceans. Panamax vessels are the largest ships that can fit through the locks of the Panama Canal.
THE STOCKS: Some drybulk shipping stocks gained Friday despite a lower broader market. Diana Shipping Inc. gained 27 cents, or 2.1 percent, to $13.37. Genco Shipping & Trading Ltd. was up 25 cents, or 1.6 percent, at $16.38.