Could Navios Partners’ Dividend Cut Be a Long-Term Opportunity?
Navios Maritime Partners (NMM) will save $72 million annually from the suspension of dividends (DVY).
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.
Demolition Activity: Dry Bulkers’ Light at the End of the Tunnel?
The demolition market for dry bulk carriers has been very active lately.
Supply-Demand Mismatch: Will It Continue for Dry Bulk in 2016?
Iron ore and coal imports from China remain weak, and steel prices remain depressed. This should continue to weigh on the dry bulk sector.
Seaborne Iron Ore Trade Not Enough to Save Dry Bulk Companies
Dry bulk shipping companies transport iron ore more than any other commodity. So it’s important for investors to watch shipments from the world’s largest iron ore exporters.
Navios’ Historical Dividend Yield Compared to Its Current Yield
The historical dividend yield for Navios Maritime Partners reached its highest point of 41% in 2008, when the broader market was doing very poorly, which spooked investors after the Lehman Brothers crisis.
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.
What Factors Led to Navios Partners’ Dismal Stock Performance?
Since releasing its 3Q15 results on November 3, Navios Maritime Partners has fallen by 50%. NMM cut its distributions by 52% from $1.77 per unit to $0.85 per unit annually.
China Real Estate Activity Fell Again in October
China’s real estate climate index was at 93.34 in October. China’s real estate climate index has been on a broad downtrend since February 2013.
China’s Iron Ore Port Inventory Remains Strong, Impacts Dry Bulkers
The iron ore inventory levels at Chinese ports can impact purchasing decisions. When the Chinese market (MCHI) rises, shipping stocks tend to rise as well.
Dry Bulkers Reel as Seaborne Coal Trade Remains Weak
While India could provide temporary relief to dry bulk shippers, its increasing domestic coal output doesn’t bode well for seaborne coal trade.
Dry Bulk Vessel Values Remain Weak: What Does It Mean?
Dry bulk shipping vessel values usually show the expectations of future freight rates. Newbuilds’ rates gauge the long-term fundamentals.
BDI Fell to an All-Time Low, Outlook Is Bleak
The BDI (Baltic Dry Index) fell for 21 straight sessions to an all-time low of 498 on November 20. This is the lowest value since the BDI started recording in 1985.
Worst Year on Record for the Dry Bulk Shipping Industry
So far, 2015 has been the worst year on record for the dry bulk shipping industry. After February, market participants got concerned about the industry’s future.
Can Baltic Dry Index Make a Recovery Soon?
The Baltic Dry Index has fallen 15.7% in the first 26 days of October. This is after a 1.2% fall in the month of September. Most of the fall is due to the Capesize rates decline.
Greece’s Mixed Bag: Industrial Production and Negative Inflation
Industrial production remains an important gauge of economic activity. Greece’s IIP (industrial production index) rose 4.5% in August 2015 from August 2014.
Falling Iron Ore Port Inventory May Be Positive for Dry Bulkers
China’s iron ore port inventory has been declining consecutively for the past five weeks. For the week ending September 18, inventories stood at 80.55 million tons, according to the data collected from 44 ports in China by SteelHome.
Will India Be Able to Fill China’s Growth Void for Coal Imports?
For the first eight months of 2015, China’s coal imports have fallen by 31.4% YoY (year-over-year). In August, China imported a total of 17.5 million tons of coal—a decline of 17.7% month-over-month.
What’s Driving Dry Bulk Shippers’ Performance?
Most of the players in the dry bulk shipping space have fallen since the beginning of the year. DryShips (DRYS) has fallen the most by 85% YTD as of September 28.
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.
Some Activist Investors Are Betting that SBLK Has Hit Bottom
Hedge funds like Caspian, Oaktree, and Monarch are going against the crowd by pinning their hopes on the assumption that SBLK’s share price has reached its floor.
Navios’s Dividend Yield Remains Attractive in Dry Bulk Space
Navios Holdings and Safe Bulkers have dividend yields of 8.8% and 1.3%, respectively. In contrast, Naviois Maritime Partners has an attractive 21% dividend yield.
Investors Should Look at Liquidity Profile of Dry Bulk Companies
Investors should take note of the short-term liquidity profile for dry bulk companies. In a weaker shipping rates environment, short-term liquidity could come under increasing pressure.
Analyzing Financial Leverage for Dry Bulk Companies
Diana Shipping (DSX) has the lowest financial leverage with debt to assets of 33.2% as of June 30. Companies with the strongest balance sheet can weather the weakness for a longer time.
Understanding Spot versus Fixed Exposure Mix before Investing
Dry bulk shipping companies usually work under two types of contracts: spot charter and time charter. Spot exposure measures the extent to which vessels are exposed to the spot market contract.
What’s the Fleet Profile for Dry Bulk Companies at End of 2Q15?
In this article, we’ll take a look at the fleet profiles for the major dry bulk companies. Depending on volume, trade routes, and the geographical limitations of ports, various classes of vessels are employed.
How Has the Dry Bulk Shipping Industry Performed This Year?
Major players in the dry bulk shipping space have taken a hard fall this year. SEA, an index weighted with dry bulk shipping companies, has lost 14.5% so far in 2015.
Navios Maritime Partners’ Operating Expenses Seem on Track
Navios Maritime Partners (NMM) has a contract with the subsidiary of Navios Maritime Holdings (NM).
Can Navios Partners’ Container Segment Offset a Dry Bulk Decline?
As a limited partnership, Navios Maritime Partners (NMM) tries to keep its distributions stable. Its ability to pay distributions came under increased pressure.…
Newbuild Vessel Prices Remained Steady in July
Newbuild vessel prices for all of the ship sizes remained constant in July 2015—compared to June 2015—according to data from Athenian Shipbrokers.
What’s the Baltic Dry Index Signaling?
The Baltic Dry Index is a leading indicator for the bulk shipping industry. It measures the cost of shipping major bulk commodities on a number of shipping routes.
Dry Bulk Shipping Industry’s Swinging Fortunes
So far, 2015 has been a roller coaster ride for the dry bulk shipping industry. The Guggenheim Shipping ETF (SEA) has fallen by 12%.
Navios Partners’ Dividend Shines Compared to the MLP Universe
Navios Maritime Partners has maintained dividend yields above those of the broad MLP universe and energy MLPs.
Could Navios Partners’ Revenue Fall Due to Scrapping?
Navios Maritime Partners’ management noted during its earnings call, which was held on July 30, that its scrapping activity increased in 2015.
Where Is the Dry Bulk Shipping Industry Headed?
In this series, we’ll discuss some of the important metrics that drive the dry bulk shipping industry. Investors can gain exposure to commodities through the SPDR S&P Metals and Mining ETF (XME).
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.
Navios Partners Offers Highest Dividend Yield in Dry Bulk Space
Navios Holdings and Safe Bulkers have dividend yields of 6.4% and 1.3%, respectively. NMM has an attractive 17% dividend yield. DryShips and Diana haven’t paid dividends in a long time.
Future Plans Vary for Companies in Dry Bulk Space
What are the future plans for companies in the dry bulk shipping space in the face of a current weak market scenario? Future plans for acquisitions or buybacks and capital deployment are significant drivers of future prospects.
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.
Why Low Vessel Operating Expenses Are a Positive
For 1Q15, Navios Maritime Partners reported daily vessel operating expenses of $5,107. This is very low compared to 1Q15 expenses per day for DryShips and Diana Shipping.
Dry Bulk Shipping Companies: How Are They Doing This Year?
Major players in the dry bulk shipping space have taken a hard fall this year. China’s appetite for iron ore and coal has waned, driving the current oversupply in the market.
Do Time-Charter Rates Still Have More Downside?
Based on shipping companies’ fixed operating expenses, we can estimate that current time-charter rates shouldn’t go down much further. We’re witnessing pretty much the floor at prevailing rates.
Lower 1Q15 Vessel Operating Expense Boosts Navios Distributions
Navio Maritime Partners’ lower daily vessel operating expenses suggest that a larger share of revenue will be distributed to investors and the general partner.
China’s Manufacturing PMI Is the Lowest in 1 Year
China’s HSBC manufacturing PMI fell to 48.9 in April. This is the lowest level since April 2014. A reading below 50 indicates contraction.
Falling Dry Bulk Orderbook: Positive for Dry Bulk Shippers
If the orderbook level continues to fall more from this point and demand continues to grow, we could see some life in dry bulk shipping rates and equities.
Secondhand Vessel Prices Continue to Fall
Secondhand vessels are delivered faster than newbuilds. As a result, secondhand vessels represent more of the short to medium-term outlook.
Baltic Dry Index up 8% in May: Can the Momentum Continue?
The Baltic Dry Index is a leading indicator for the bulk shipping industry. It tracks a number of shipping routes and the transportation costs.
Dry Bulk Shipping Industry: Performance in 2015
Dry bulk shipping got a major boost from China’s increased appetite for iron ore and coal almost eight years ago. Large ship orders are driving the current oversupply.
Chinese Crude Steel Production Takes a Break
In the first two months of 2015, China’s crude steel output dropped 0.21% year-over-year to 130.5 million tons, according to government data.
China’s Coal Imports Fall on Quality Inspections and Lower Demand
In 2014, China coal imports dipped year-over-year for the first time in six years. Imports fell 10.9% to 291.6 million tonnes.
China’s Iron Ore Imports Dip on Suspended Construction Activities
China’s iron ore imports declined for the second straight month in February 2015, down 13.5% to 67.94 million tonnes over January 2015.
China Surprises with Marginal Growth in February
Just before the release of the official PMI data, the central bank in China cut interest rates by 0.25 percentage points.
What’s on the Horizon for the Dry Bulk Shipping Industry?
In this series, we’ll look at some of the important metrics that drive the dry bulk shipping industry such as the price of commodities.
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.
Analyzing Dry Bulk Vessels’ Orderbook, Supply, and Slippage
In 2014, the newbuilding orderbook for dry bulk carriers reported 746 orders—145 Panamax vessels, 132 Capesize vessels, and 19 VLCCs.
Diana: Rising Coal Stockpiles Will Likely Hamper Dry Bulk Shipping
Coal stockpiles reached 8 million tons. The continued rise may negatively impact the near-term coal import prospects.
Diana Shipping Expects Chinese Steel Output to Fall in 2015
According to Diana Shipping’s (DSX) management, world crude steel production reached 1.66 billion metric tons in 2014. It was up by 1.2% compared to 2013.
What Investors Should Know about Diana Shipping’s 4Q Earnings
Diana Shipping is a global shipping company. It specializes in dry bulk vessel ownership. It reported the results of its 4Q earnings on March 4, 2015.
Investing in the Dry Bulk Industry: Fleet Supply Analysis
DryShips (DRYS) commented that its total dry bulk fleet’s compound annual growth rate for 2005 to 2014 stood at 9.1%. Its fleet increased by 4.4% in 2014.
Why DryShips May Gain on Spot Tanker Rates
Looking ahead, spot market rates are expected to rise going forward, and this will allow DryShips to improve its revenue and earnings.
DryShips Should Find Support from the Dry Bulk Market Recovery
World Maritime News comments that it expects a fundamental and sustainable dry bulk market recovery in the second half of 2015 and throughout 2016.
DryShips’ Fourth Quarter Earnings and Fleet: Investor Snapshot
In this series, we’ll discuss DryShips’ fourth-quarter earnings in detail and the company’s 2015 outlook. We’ll also analyze the company’s strategy.
Lower net fleet growth will likely improve the rate environment
In 2015, the net fleet growth is forecast to be below 4%. The forecast is lower than last year. It’s expected to be lower than the demand growth.
Global growth may drive the shipping industry higher
History reveals that increases in world GDP growth generally led to increases in marine transportation rates. Since June 2014, crude oil prices fell 50%.
Good for investors: Navios Holdings has a strong balance sheet
Navios Holdings has a strong balance sheet. It has low leverage levels and a healthy cash balance. As of December 31, 2014, the company recorded $250 million in cash.
A snapshot of Navios Maritime Holdings’ fourth quarter earnings
Navios Maritime Holdings (NM) is a global seaborne shipping and logistics company. It’s focused on the transport and transshipment of dry bulk commodities.
Navios Maritime Partners: Bet on dry bulk depends on world growth
The dry bulk industry is broadly affected by factors like global economic growth, which positively correlates with raw material consumption.
Why China’s coal imports are declining
In 2014, China’s coal imports recorded their first year-over-year dip in six years. Imports dropped 10.9% to 291.2 million tonnes.
Why Brazil’s iron ore export is losing market share to Australia
According to customs data, iron ore exports from Brazil accounted for 18% of China’s overseas purchases in 2014 compared to 19% in 2013.
China’s January PMI is below the expansion level
China’s official purchasing managers’ index (or PMI) declined to 49.8 in January 2015 from its December 2014 levels of 50.1.
The Baltic Dry Index is at its lowest in 3 decades
The Baltic Dry Index slid 0.9% to 554 points on February 9, 2015, the same level it fell to in July and August of 1986.
How have key players in the dry bulk shipping industry performed?
To date in 2015, the Guggenheim Shipping ETF, an index weighted with dry bulk shipping companies, increased 1.3%, while the Baltic Dry Index declined 28.3%.
Tankships boasts strong management with years of experience
An experienced management team strengthens the Tankships’ foundation. George Economou will serve as its chairman, president, and CEO.
Oil demand and lower bunker fuel prices benefit tanker companies
Despite a fall in the crude oil prices, tanker firms are looking to raise capital through the US markets. Crude prices recorded a dip of 46.8% in 2014.
Tankships emerges in the crude oil transportation industry
Tankships Investment Holdings Inc. (TNKS) is an international shipping company. It provides worldwide seaborne transportation of crude oil petroleum.
China’s coal imports are rising due to cheaper coal overseas
For 2014, the total coal imports were 291.22 million tonnes—compared to 327.1 million tonnes in 2013. This was after many years of double-digit growth.
Monthly crude steel production’s YoY growth – 2014 declined
The National Bureau of Statistics revealed that the December crude steel output in China increased 7.6% to 68.09 million tonnes. Steel output was up 1.5% YoY.
Why increasing Newbuild vessel prices discourages buyers
On a weekly basis, vessel prices indicate the current trading prices of Capesize, Panamax, Supramax, and Handymax vessels. They also indicate the weekly changes.
Baltic Dry Index – Why December dipped in red
The Baltic Dry Index, or BDI, measures the price of transporting dry bulk. It’s a combination of rates for different ship sizes.
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%.
Why maturing contracts are a risk to Navios Maritime Partners
Navios Maritime Partners has a modern, diverse fleet of 32 vessels with 3.3 million DWT and an average age of 7.5 years for its combined fleet.
How Navios Maritime Partners manages and increases is fleet
Since its IPO in May 2007, Navios has grown its distribution by 26.4% and its fleet capacity by over 400%.
Overview and fleet portfolio of Navios Maritime Partners
Since Navios Maritime Partners (NMM) reported its earnings, the stock has dipped 28.3%, touching its 52-week low of $9.67 on December 15.
Must-know: Newbuild dry bulk prices dip
For bulk carriers, Capesize vessel prices stood at $54.2 million in November as compared to $54.8 million in October.
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.
How China’s slow real estate markets hurt the shipping industry
Accounting for almost 20% of gross domestic product (or GDP), China’s real estate sector plays a major role in the country’s economic activity.
Brazil iron ore export dips in November
Brazil is the second largest iron ore exporting country, accounting for almost 25% of market share.
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.
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.
Dry bulk industry trends mean positive outlook for DryShips
Looking ahead, many factors are likely to positively influence the shipping market and the companies that play in it. For example, India’s increasing appetite for coal has caused Capesize and Panamax rates to surge by 94% and 49%, respectively.
DryShips’ dry bulk and crude tanker fleet statistics
Orderbooks of Suezmax and Aframax fleets remain at manageable levels, with the majority of new orders due for delivery in the second half of 2016 or later.
DryShips’ common equity and secured credit facilities
George Economou, the company’s chairman, president, and chief executive officer, purchased $80 million, or 57.1 million shares of common stock at the public offering price. With this purchase, Economou increased his ownership in DryShips to 16.9%.
DryShips improves its time charter equivalent and outlook
DryShips notes that it has significant leverage in the dry bulk and tanker spot markets. So, positive developments in these sectors will result in substantial cash flow to its bottom line.
China’s iron ore imports are on a roll as coal imports narrow
China is the world’s top iron ore and coal consumer. China imports almost 60% of the world’s seaborne iron ore, while its coal trade accounts for almost a quarter of the global trade.
Crude steel production run-up affects dry bulk shippers
China’s crude steel production is a key indicator that dry bulk shipping investors should watch. This is mainly due to iron ore primarily being used to manufacture steel.
October dry bulk newbuild ship prices are relatively consistent
An indicator to gauge bulk vessels’ fundamental prospects, ship prices include newbuild vessel prices and second-hand vessel prices.
Dry bulk orderbook falls in October, showing lower expectations
Ship orders’ importance Orderbook is an indicator that investors can track for the longer run, as dry bulk ships generally take one or two years to construct. Managers’ expectations of future supply and demand differences reflect in the number of ships they order. Rising and falling ship orders indicate the different market scenarios. When managers refrain from purchasing […]
Assessing dry bulk shipping industry players and performance
Growing construction activity in the global arena leads to significant demand for iron ore and coking coal, which expands the seaborne trade of these dry bulk commodities.
Why China’s coal and grain trade increased
Coal trade saw significant changes over the past few years. China was a net coal exporter in 2009—only five years ago. Today, it’s the world’s largest importer.
Why China’s urbanization is leading to a rise in iron ore imports
For the rest 2014 and beyond, China’s continued development in urbanization is expected to contribute significantly to steel consumption.