Navios Maritime Holdings Inc
Changing Dynamics in the Eurozone: The Global Effect
The euro was first introduced at midnight on January 1, 1999, in non-physical form. The aim of the Eurozone was to have a common currency for 19 of the 28 participating EU nations.
Is the Net Asset Value Discount to NMM’s Price Justified?
Due to NMM’s increasing spot rate exposure and older fleet, NAV (net asset value) is the best metric to get a sense of the company’s floor valuation.
Navios: Could Its Container Segment Lead to Revenue Downside?
Hyundai Merchant Marine is in talks to amend its existing container ship contracts.
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).
What Prompted Navios Maritime Partners to Suspend Dividends?
Navios Maritime Partners (NMM) suspended its dividends altogether in 4Q15 after a cut of 52% in 3Q15.
Navios Partners’ Stock Whipsaws after Suspension of Dividends
Navios Maritime Partners has announced the suspension of dividends altogether. This follows a 52% dividend cut by the company in 3Q15.
Chinese Steel Demand Doesn’t Look Good for Dry Bulkers in 2016
In this part of our series, we’ll explore how steel demand from the construction, machinery, and infrastructure sectors could shape up in 2016.
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.
Can Time Charter Rates Fall Much Further?
Under TC (time charter) contracts, vessels are hired for a specific period at a pre-decided daily rate.
Demolition Activity: Dry Bulkers’ Light at the End of the Tunnel?
The demolition market for dry bulk carriers has been very active lately.
What are the Rate Expectations for Dry Bulk in 2016?
Though increased scrapping and minimal ordering activity could provide some relief on the supply side, the outlook for 2016 isn’t looking good for dry bulk.
How Does NMM’s Stock Compare with Its Adjusted Net Asset Value?
Navios Maritime Partners’ adjusted NAV (net asset value) shows that it is currently trading at a 46% discount to its NAV.
Are Navios Maritime’s Book Vessel Values Telling the Whole Story?
The vessel values of dry bulk companies have deteriorated significantly in the past year due to the pressure on freight rates.
Navios Maritime Partners Falls in the Current Dry Bulk Rout
Since releasing its 3Q15 results on November 3, 2015, Navios Maritime Partners (NMM) has fallen by 71%.
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.
Low Dry Bulk Vessel Values Not Low Enough to Tempt Buyers
Dry bulk shipping vessel values have fallen to very attractive prices, especially for secondhand vessels. But investors are still wary of the downside ahead.
Dry Bulk Time Charter Rates Paint a Grim Picture
Time charter rates for dry bulk vessels have fallen considerably over the last few months. Capesize one-year rates have fallen by 40% in the last three months to $7,750 per day.
The Relative Valuation of Dry Bulk Companies
Diana Shipping is proactively investing in vessels to take advantage of the current low point for vessel valuation, and it can most likely outlast a prolonged downturn. So its valuation appears more or less full.
NMM Is the Only One Paying Dividends: Should Investors Care?
Navios Maritime Partners (NMM) cut dividends by 52% in its 3Q15 results given the weak outlook for the dry bulk industry. But even after a cut, it’s boasting of a yield of 30%+.
Which Dry Bulk Company Has a Strong Financial Standing?
Since the market isn’t showing encouraging signs of a significant pickup next year, dry bulk companies might need to weather a prolonged downturn and manage their liquidity prudently.
An Analysis of Financial Leverage for Dry Bulk Companies
Scorpio Bulkers (SALT) has the lowest financial leverage with debt-to-assets of 31.8% and debt-to-equity of 42.6% as of September 30, 2015. But this doesn’t give the full picture.
How Are Dry Bulk Companies Changing Their Chartering Strategies?
Navios Maritime Partners (NMM) and Diana Shipping (DSX) have a chartering strategy to charter the bulk of their vessels for the long term, thus holding high fixed-rate exposure.
Low Vessel Operating Expenses Help the Downturn in Dry Bulk Rates
In the current scenario of a weak dry bulk market, companies with lower operating expenses are preferred, since pressure on revenues makes operating leverages work negatively.
Scorpio, Safe Bulkers Have Young Dry Bulk Fleet: Does It Matter?
Scorpio Bulkers held an IPO in December 2013 and started to focus on only newbuild fleet. That’s the reason it has the youngest dry bulk vessel fleet with an average age of just 0.4 years.
Dry Bulker Fleet Profiles: The Impact on Profitability
Depending on volume, trade routes, and the geographical limitations of ports, various classes of vessels in a fleet are employed. Capesize and Panamax are used primarily to transport iron ore, coal, and grains.
2015: The Worst Year on Record for Dry Bulk Companies
Looking at dry bulk dynamics, the Baltic Dry Index (or BDI) is holding near all-time lows as rates for the bulkers continue to slump. Current rates are lower than the breakeven costs for most owners.
What are Analysts Recommending for Navios Partners?
Of the 12 analysts covering Navios Maritime Partners, two analysts have “buy” recommendations, seven have “hold” recommendations, and three have “sell” recommendations.
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.
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.
China’s Iron Ore Imports Surge: Long-Term Sustainability Doubtful
China’s iron ore imports in September were the highest level of 2015 at 86.1 million tons. This was a rise of 1.7% year-over-year and 16.2% month-over-month.
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.
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’s the Outlook for Star Bulk Carriers?
If dry bulk demand picks up, Star Bulk Carriers (SBLK) with its large fleet would be in a position to capitalize on the upswing.
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.
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.…
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.
A Rising Baltic Dry Index Is Good News for Dry Bulk Shippers
Though the Baltic Dry Index has improved in the last two months, industry experts still believe that oversupply and weak demand growth will keep the BDI down for another year or so.
Newbuild Vessel Prices Sink Lower Again in June
Activity in the newbuild space is slowing down considerably, and faltering commodity demand in China is leading to negative sentiment toward the dry bulk shipping industry.
China’s Slumping Auto Sales May Be Bad News for Dry Bulk Shippers
Auto sales in China fell by 2.3% year-over-year in June to 1.8 million vehicles. China’s Association of Automobile Manufacturers has also lowered its estimate for auto sales growth in 2015.
How Big Is the Chinese Appetite for Iron Ore Imports?
China’s iron ore imports in June came in at 74.96 million tons, 5.8% higher than the previous month and 0.5% higher than a year earlier.
Record Port Hedland Iron Ore Exports: Good for Dry Bulk Shipping
Iron ore exports from Port Hedland totaled 38.4 million tons in June. In May, exports totaled 38 million tons. So that’s a jump of 14.3% year-over-year and 1.1% month-over-month.
China’s Manufacturing Purchasing Managers’ Index Still below 50
China’s final reading of the manufacturing purchasing managers’ index came in at 49.4. Factory activity in China has been below the 50 mark for the last four months.
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).
China’s Crude Steel Production Fell in May: Outlook Is Negative
According to data released on May 22, world steel production fell by 2.1% YoY in May. China’s steel production also fell by 1.6% YoY on a YTD basis.
China’s Iron Ore Imports Decline: Pressures Dry Bulk Shippers
China consumes close to two-thirds of the global seaborne iron ore. In 2014, China imported 932.5 million tons of iron ore—13.8% more than in 2013.
Port Hedland Records Higher Iron Ore Exports
On a month-over-month basis, iron ore exports to China from Port Hedland increased marginally to 30.25 million tons in February 2015.
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.
Brazilian Iron Ore Exports Surge in February
Seasonality in Brazilian iron ore exports may improve the pace of shipments for the rest of 2015 and possibly buoy Capesize rates.
Secondhand Vessel Prices Approach 15-Year Lows
Like the cost of newbuilds, secondhand vessel prices are also on the slide. Five-year old Capesize prices dropped to $33.1 million in February 2015.
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.
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.
Shipping industry: Steel demand and imported iron ore substitution
In 2014, Chinese iron ore imports were up 14% YoY. Domestic iron ore production only increased by 5%. There are planned expansions for global iron ore mines.
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 wins big in container sector
Since its foray into the container sector, Navios Maritime Partners has invested $540.5 million in eight vessels with a total capacity of 63,508 TEU.
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%.
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.
Despite dividends, Navios is still unattractive to many investors
Dividend yield for Navios Maritime Partners currently stands at 15.8% with the company recently paying a dividend of $0.4425 per common unit.
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.
5-year and 10-year ship prices for dry bulk companies
Vessel prices are very close to bottom levels that occurred back in the period from December 2012 to January 2013.
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.
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.
Star Bulk comments on coal and grain
Star Bulk believes the recent coal import restrictions were minimal, while the freight rate agreement signing between Australia and China can be a positive development.
Dry bulk trade demands Star Bulk dynamics
Star Bulk management stated that commodity demand remains healthy, while substantial supply expansion has resulted in surpluses across various commodity markets.
Star Bulk’s liquidity and cash flow
This part covers Star Bulk’s cash flow numbers given the company’s rapid expansion of its fleet size through acquisitions and other related developments.
Changes in Star Bulk’s management fees and operating and net income
Star Bulk’s management fee income is at $0.3 million compared to $0.5 million for 3Q13, due mainly to a decrease in the number of vessels under management.