DryShips Inc

Latest DryShips Inc News and Updates

  • Energy & Utilities

    Why a pullback in orders is normal in a dry bulk shipping upcycle

    On November 1, ship orders for all key dry bulk vessel classes fell. Ship orders reflect managers’ expectations of future supply and demand differences.

    By Xun Yao Chen
  • uploads///Charter rates
    Company & Industry Overviews

    Are Navios Maritime Partners’ Distributions Sustainable?

    Navios Maritime Partners LP (NMM) is less sensitive to shipping cycles due to its long-term charters and staged expirations.

    By Anuradha Garg
  • uploads///China Industrial and Electricity Output
    Energy & Utilities

    China’s key economic conditions: Industrial and electricity output

    Because reporting entities sometimes like to dress their numbers up a bit to look nice, analysts also look at electricity output—where government officials say they don’t have much incentive to cook the numbers.

    By Xun Yao Chen
  • Industrials

    Dry bulk shipping weekly analysis (Part 3: Construction rises)

    Continued from Part 2 Ship construction activity Part 2 of this series explains how ship orders can illustrate managers’ expectations for future supply and demand differentials. But new ship orders don’t always translate into new constructions right away. Sometimes, shipping firms specify a particular date of delivery for the new orders. If the delivery date is farther […]

    By Xun Yao Chen
  • Energy & Utilities

    Why China’s iron ore port inventory is marginally higher

    China buys around two-thirds of the world’s iron ore—iron ore supply in China outpaced demand by 52 million tons in the first half of 2014, according to the China Iron and Steel Association (or CISA).

    By Katie Dale
  • uploads///Dry Bulk Capacity    e
    Energy & Utilities

    Current positive data shows supply to grow below 7% in 2013

    In a highly commoditized industry like the shipping industry, capacity is an important metric that directly impacts companies’ top line, or revenue performance. When capacity grows faster than demand, competition will rise among individual shipping firms as they try to utilize idle ships and cover fixed costs. This will lower day rates, which will negatively […]

    By Xun Yao Chen
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    Fund Managers

    What Do Fundamental Bulk Shipping Indicators Say?

    The BDI (Baltic Dry Index) is a leading indicator for the bulk shipping industry. It’s a measure of the cost of shipping major bulk commodities on a number of shipping routes.

    By Santiago Solari
  • uploads///Floor Space Under Construction
    Energy & Utilities

    Chinese investing in cars and real estate drives dry bulk demand

    As long as developers continue to snatch up land, more iron ore and coal will be needed at steel mills, which is generally positive for dry bulk shippers.

    By Xun Yao Chen
  • Energy & Utilities

    Why Diana kept buying after its fleet capacity grew 23.75% in 2013

    The year 2013 was characterized by significant expansion of Diana Shipping Inc.’s (DSX) fleet, as the dry bulk shipping industry turned a corner.

    By Katie Dale
  • Industrials

    We just need decent ship orders for dry bulk shippers to recover

    Managers remain optimistic From September 13 to 20, ship orders for Capesize vessels fell by 0.25%, from 10.53% to 10.28%, as a share of the existing number of ships. Orders for Panamax improved from 15.34% of existing ships to 15.87%, while those for Supramax were up slightly, rising 0.04% to 4.64%. Analysts use a percent […]

    By Xun Yao Chen
  • uploads///Untitled
    Energy & Utilities

    Capesize rates take out 2012 high, a key driver of share prices

    Taking out 2012’s high is important because it reflects tighter supply and demand dynamics than last year, which means higher revenue and earnings from Capesize vessels this year compared to 2012.

    By Xun Yao Chen
  • uploads///Exposure Chart
    Energy & Utilities

    Why can Navios Partners give out higher distributions?

    While Navios Maritime Partners (NMM) is less sensitive to shipping cycles because of its longer-term contracts and staged expirations, it’s still subject to market rates when contracts roll over.

    By Katie Dale
  • uploads///Article
    Macroeconomic Analysis

    Why China’s iron ore and coal imports declined

    China imports almost 60% of the world’s seaborne iron ore while its coal trade accounts for almost a quarter of the global trade.

    By Katie Dale
  • uploads///Baltic Shipping Index by Ship Class    e
    Industrials

    Why shipping rates for Capesize vessels continue to outperform

    Investors can look forward to higher Capesize rates during the second half of this year compared to the first half, which is positive for dry bulk shippers.

    By Xun Yao Chen
  • uploads///Article
    Materials

    Dry bulk shipping industry players and performance

    China accounts for a major share of dry bulk commodities’ imports and exports. In the past three months, the Guggenheim Shipping ETF (SEA) dropped 6.1%.

    By Katie Dale
  • uploads///Baltic Shipping Index by Ship Class    e
    Industrials

    Shipping stocks rise as Capesize rates approach $20,000

    From August 23 to 30, shipping rates for Panamax, Supramax, and Capesize vessels stood relatively unchanged.

    By Xun Yao Chen
  • uploads///China Imported Iron Ore Price    e
    Industrials

    Iron ore shipments rose in June due to demand, positive for dry bulk shipping

    China’s iron ore import data China’s iron ore import is a key driver of shipping demand, making up more than 75% of the world’s total iron ore shipments. So China’s import rising is positive for shipping rates—Capesize vessels in particular—which can give short-term support to share prices and a medium-term boost to companies’ financials. While […]

    By Xun Yao Chen
  • uploads///China Interbank Repo  Months    e
    Industrials

    China’s interbank lending rate falls below 6.0%, positive for dry bulk shipping?

    Update to Must-know: Shipping companies hit by China’s financial woes The impact of China’s financial industry The financial industry is an essential part of any economy. Without a stable financial system—one that supplies liquidity to businesses and individuals and bridges the gap between savers and borrowers—an economy can’t function as efficiently and productively as it […]

    By Xun Yao Chen
  • uploads///China Daily Steel Output    e
    Industrials

    Early July steel output falls steeply, worrisome for dry bulk shipping stocks?

    China’s steel output China’s steel output is a leading indicator of iron ore and coal demand. When steel output declines, the fall is often due to adjustments to weaker demand. As China makes up 70% of the world’s total iron ore imports, lower steel output will translate to fewer iron ore imports. This will hurt […]

    By Xun Yao Chen
  • uploads///YOY BDI
    Energy & Utilities

    The Baltic Dry Index fell in January but annual growth is positive

    The Baltic Dry Index (a benchmark that reflects the overall shipping rate for transporting dry bulks such as iron ore, coal, and grain across the ocean) has fallen quite a bit since the start of the year.

    By Xun Yao Chen
  • uploads///China Interbank Repo  Months    e
    Energy & Utilities

    Must-know: Shipping companies hit by China’s financial woes

    The impact of China’s financial industry The financial industry is an essential part of an economy. Without a stable financial system—one that supplies liquidity to businesses and individuals and bridges the gap between savers and borrowers—an economy can’t function as efficiently and productively as it could. So, a collapse in the financial industry would grind […]

    By Xun Yao Chen
  • Industrials

    Shipping capacity growth breaks below 7%, first time since 2009

    Why is capacity important? Capacity is an important factor that directly impacts companies’ top line (revenue) in a highly commoditized industry, like shipping. When capacity grows faster than what’s demanded, competition rises among individual shipping firms as they try to use idle ships and cover fixed costs. This lowers day rates, which negatively affects bottom […]

    By Xun Yao Chen
  • uploads///Baltic Dry Rates e
    Industrials

    Shipping indexes rise, driving dry bulk shipping company shares

    It’s been a while since the dry bulk shipping index has had such as large impact on the share prices of shipping companies. This reflects the fact that the market wasn’t really expecting such an increase.

    By Xun Yao Chen
  • uploads///Coal imports China
    Macroeconomic Analysis

    Should Dry Bulkers Expect Much from Coal Imports in 2016?

    Many market participants are forecasting a further fall in coal imports for China in 2016.

    By Anuradha Garg
  • uploads///OECD Leading Indicator
    Energy & Utilities

    Why the OECD leading indicator drives dry bulk shipping cycles

    Because the month-to-month data can contain short-term statistical noise that doesn’t reflect long-term fundamental changes, a six-month change or year-over-year change is often used.

    By Xun Yao Chen
  • uploads///Dry Bulk Shipping Stocks    e
    Industrials

    Why you should watch 7 key industry indicators for shipping fundamentals (Part 1)

    Dry bulk shipping companies lag behind economic recovery Despite the U.S. stock market surpassing its 2008 highs recently, with the Dow Jones Industrial Index hitting 15,464.30 and S&P 500 hitting 1,680.19 as of July 12, 2013, dry bulk shipping companies have done poorly. These companies primarily transport raw materials such as iron ore, coal, and […]

    By Xun Yao Chen
  • uploads///Contract
    Energy & Utilities

    Maturing contracts present significant downside for certain shipping firms

    The two main markets for shipping companies, such as DryShips Inc. (DRYS), Diana Shipping Inc. (DSX), Navios Maritime Partners LP (NMM) and Safe Bulkers Inc. (SB), are spot (voyage) and time charter (period). Companies that engage in the spot market will charge a one-time fee that customers pay to have a certain amount of goods […]

    By Xun Yao Chen
  • Energy & Utilities

    China’s thermal power output recorded a downfall

    China’s power consumption in August was 502.5 billion kilowatt hours (or kWh). This was a decline of 1.5% from the levels last year.

    By Katie Dale
  • Energy & Utilities

    Capacity growth portrays short-term negative but long-term positive for shipping

    In a highly commoditized industry, like the shipping industry, capacity is an important metric that directly impacts companies’ top line, or revenue performance. When capacity grows faster than demand, competition will rise among individual shipping firms as they try to utilize idle ships and cover fixed costs. This will lower day rates, which will negatively […]

    By Xun Yao Chen
  • uploads///Cyclicality
    Energy & Utilities

    Recommendation: Capitalize on dry bulk shipping’s cyclical waves

    The dry bulk shipping industry is cyclical mainly due to economic or business cycles as well as a long lead time between the placement of orders and the delivery of new vessels.

    By Xun Yao Chen
  • Energy & Utilities

    Shipping recovery continues with additional purchases, long-term opportunity

    Ship orders apply most to long-term investments Ship orders reflect managers’ assessments of the industry’s future demand and supply balance. Dry bulk shipping companies will often place new orders when future demand is expected to increase more than supply, on the condition that they expect to generate profits with new vessels.[1. Dry bulk shipping companies […]

    By Xun Yao Chen
  • uploads///Baltic Shipping Index by Ship Class    e
    Industrials

    Dry bulk shipping rates rise due to restocking, but likely downside looming

    The dry bulk shipping industry’s service is commoditized. So, supply and demand balance is one of the most important drivers for dry bulk companies’ top- and bottom-line performances.

    By Xun Yao Chen
  • uploads///Dry Bulk Vessel Prices  Years Old    e
    Industrials

    Ship prices rise to 8-month high, supporting dry bulk shipping recovery

    Why should you watch ship purchase prices? Purchase prices for ships are often good indicators of financial health in the shipping industry. When shipping demand grows more than the supply of ships, shipping companies place additional orders, which drives up purchase prices. Additionally, when firms are able to charge higher prices for transporting goods across […]

    By Xun Yao Chen
  • uploads///China Iron Ore Price    e
    Materials

    Why iron ore prices rising to two-month high is positive for dry bulk shippers

    Commodity prices and shipping Commodity prices are leading indicators of an economic cycle. Because suppliers of raw materials require time to ramp up production, an increase in demand during an economic expansion will often lead to higher prices. As a result, commodity prices correlate highly with shipping. Iron ore prices On July 25, the price […]

    By Xun Yao Chen
  • uploads///Baltic Shipping Index by Ship Class    e
    Industrials

    Why Capesize vessels are outperforming other ship vessels in rates

    Supply and demand drives dry bulk shipping companies Unlike imports data that aren’t widely available on a weekly basis, shipping rates (which reflect the difference in supply and demand) are collected daily at the London-based Baltic Exchange and published as the BDI (Baltic Dry Indexes). These indexes reflect the daily shipping rates to transport key […]

    By Xun Yao Chen
  • Energy & Utilities

    Must-know: Baltic Dry Index bouncing from its 52-week low

    The Baltic Exchange Dry Bulk Index (BDIY) is a composite of rates for different ship sizes factoring in the average daily earnings of capsize, panama, supramax, and handysize dry bulk transport vessels.

    By Katie Dale
  • uploads///Valuation
    Company & Industry Overviews

    Which Company Can Offer an Upside in the Weak Dry Bulk Market?

    Navios Maritime Partners (NMM) seems like a good way to play the current weak dry bulk market. It has an upside in case of an eventual recovery.

    By Anuradha Garg
  • uploads/// yr charter rates
    Company & Industry Overviews

    Diana Shipping and Navios Partners Have to Weather Rollover Risk

    For Diana Shipping, contract rollover is a near to medium-term risk. Among its Capesize fleet, almost all of the 12 contracts will expire within about a year and a half.

    By Anuradha Garg
  • uploads///Article
    Macroeconomic Analysis

    Why the dry bulk shipping industry is weakening

    Numerous factors like world economic growth and commodity supply and demand affect the dry bulk shipping industry.

    By Katie Dale
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    Energy & Utilities

    Panamax vessel price reveals low dry bulk orders, negative implication

    The price of a Panamax ship depends on two factors: the amount of cash the ship can generate within its useful life and the cost of steel.

    By Xun Yao Chen
  • uploads///Article
    Earnings Report

    Diana Shipping’s Investment Strategy and Market Outlook

    Diana Shipping’s investment strategy is to preserve the strength and integrity of its balance sheet and gradually increase its leverage as asset values weaken.

    By Katie Dale
  • Energy & Utilities

    Shipping industry recovery is real, but timing remains uncertain

    Ship orders reflect managers’ assessments of the industry’s future demand and supply balance. Dry bulk shipping companies will often place new orders when future demand is expected to increase more than supply, on the condition that they expect to generate profits with new vessels.[1. Dry bulk shipping companies engage in the transportation of dry raw […]

    By Xun Yao Chen
  • uploads///Dry Bulk Vessel Prices  Year Old    e
    Industrials

    Dry bulk shipping weekly analysis (Part 10: Ship prices)

    Continued from Part 9 Why should you watch ship purchase prices? Purchase prices for ships are often good indicators of financial health in the shipping industry. When shipping demand grows more than the supply of ships, shipping companies place additional orders, which drives up purchase prices. Plus, when firms are able to charge higher prices […]

    By Xun Yao Chen
  • Energy & Utilities

    Must know: China’s crude steel production edging upwards

    China’s steel production mills are reluctant to reduce output for fear credit could be cut off and market share captured by rival producers.

    By Katie Dale
  • uploads///Article
    Macroeconomic Analysis

    Why the Baltic Dry Index dipped in November

    Despite a decline in fuel prices, the Baltic Dry Index has recorded an approximate 40% drop since the start of November and a 62% decline year-to-date.

    By Katie Dale
  • Energy & Utilities

    Overview: Maintaining a perfect, modern, and young fleet size

    SB has paid six additional new eco-design newbuild vessels on order.

    By Katie Dale
  • Industrials

    Must-know: Weekly dry bulk shipping industry fundamentals update (Part 2)

    Continued from Part 1 The importance of ship orders One measure that reflects managers’ expectation of future supply and demand differences is the number of ships on order. When managers expect future supply to increase more than demand, they refrain from purchasing new ships. However, when they expect demand to outpace supply growth, companies return to […]

    By Xun Yao Chen
  • uploads///China Manufacturing State PMI BDI    e
    Financials

    Why it pays to be patient about China’s manufacturing activity

    Because China is the largest importer of raw material in the world, China’s manufacturing is a key driver that affects shipping demand and rates.

    By Xun Yao Chen
  • uploads///TCE
    Energy & Utilities

    Why declining time charter rates dented revenue

    During the quarter, Safe Bulkers operated 31 vessels with a time charter equivalent rate of $11,642—compared to 26 vessels with time charter equivalent rate of $17,116 during 2Q13. The weighted average time charter equivalent of the Baltic Panamax (or BPI) and Baltic Capesize (or BCI) indices stood at $6,846 for 2Q14.

    By Katie Dale
  • uploads///Cyclicality of BDI
    Energy & Utilities

    Why we could see fewer volatile swings in dry bulk shipping stocks

    The recent volatility we’ve seen among dry bulk shippers can scare people into thinking they should trade in and out of the stock.

    By Xun Yao Chen
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