So far, 2015 has been a roller coaster ride for the dry bulk shipping industry. The Guggenheim Shipping ETF (SEA) is an index weighted with dry bulk shipping companies. It has fallen by 12%. The BDI (Baltic Dry Index) has risen by 27.20%. We’ll discuss this in more detail later in this series.
Most of the players in the dry bulk shipping space have lost value since the beginning of the year. DryShips (DRYS) fell the most by 69% YTD (year-to-date) as of August 21. It was followed by Star Bulk Carriers (SBLK). It returned -63.20%. Navios Maritime Holdings (NM) and Safe Bulkers (SB) have fallen by 28.60% and 16.20%, respectively, YTD. Navios Maritime Partners (NMM) was doing better until July. Since the end of July, it has fallen by 26%. Diana Shipping (DSX) has been the best performer. It has risen 6.80% YTD. This is most likely driven by lower leverage in a weak market.
Navios Maritime Holdings forms 2% of SEA’s holdings.
It’s important to note that investors can gain exposure to commodities through the SPDR S&P Metals and Mining ETF (XME).
In this series, we’ll discuss some of the important metrics that drive the dry bulk shipping industry. First, we’ll analyze the dry bulk shipping market’s medium and long-term outlooks by studying vessel prices for newbuilds and secondhand vessels. We’ll also look at the dry bulk orderbook. Then, we’ll analyze China’s manufacturing activity as measured by the PMI (purchasing managers’ index). We’ll also discuss iron ore and coal imports and exports among significant trading economies.