Guggenheim Shipping ETF

Latest Guggenheim Shipping ETF News and Updates

  • Industrials

    Scorpio Tankers’ shares in Dorian to be registered for resale

    Dorian will be registering for resale, under the Securities Act of 1933 as amended, all the Dorian shares that Scorpio Tankers (STNG) owns. Scorpio Tankers currently owns approximately 9.4 million shares, or 16.3%, of Dorian.

    By Katie Dale
  • Energy & Utilities

    Must-know: Why products supplied are increasing

    For the week ending October 3, 2014, total products supplied were 19 million barrels per day (or bpd)—compared to 18.6 million bpd in the first week of September.

    By Katie Dale
  • uploads///Crude Tanker  Years Old Price
    Energy & Utilities

    Why current secondhand oil tanker values suggest a mixed outlook

    While the VLCC data is positive, the picture for the crude tanker business remains mixed. This could portray a short-to-medium-term negative outlook.

    By Xun Yao Chen
  • 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
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    Industrials

    Scorpio Tankers adopts a shift in charter mix

    For the third quarter of 2014, the charter hire expense increased $1.1 million to $32.9 million, from $31.9 million in the year ago quarter.

    By Katie Dale
  • 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
  • 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
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    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
  • 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
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    Earnings Report

    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.

    By Katie Dale
  • Energy & Utilities

    Why 5- and 10-year Very Large Crude Carrier prices are consistent

    Five-year-old VLCC prices remained consistent, at $75 million, with the previous month’s levels. Year-over-year prices increased by 36%. Ten-year-old VLCC prices stood unchanged at $48 million and increased by 41.2% year-over-year.

    By Katie Dale
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    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///Crude Tanker Newbuild Price
    Energy & Utilities

    Newbuild tanker prices rose, but you should still use caution

    October’s increase is generally positive for the long-term prospects of tanker stocks like Frontline ltd. (FRO) or Nordic American Tanker Ltd. (NAT).

    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///Crude Tanker Capacity    e
    Energy & Utilities

    Weekly tanker digest: Have fundamentals changed? (Part 4)

    Continued from Part 3 The importance of capacity Capacity, in a commoditized industry like shipping, 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 use idle ships and cover fixed costs. This will lower day […]

    By Xun Yao Chen
  • 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///Crude Tanker Stock Perf
    Energy & Utilities

    Gener8 Maritime Partners: Fourth-Best Performer in 2018

    Gener8 Maritime Partners’ YTD returns were -10% as of April 5, 2018. Gener8 Maritime Partners is the fourth-best performer among its peers YTD.

    By Sue Goodridge
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    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///Crude Tanker Price  Years Old    e
    Energy & Utilities

    Why 15-year ship prices point to negative outlook for tanker stocks and earnings

    Why ship prices (value) matter Ship prices (values) 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 of ships, which drives up purchase prices. Additionally, when firms are able to charge higher prices for transporting goods across the […]

    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
  • Energy & Utilities

    Why a high cash breakeven cost is risky for Frontline

    The cash breakeven costs are the daily rates of Frontline’s (or FRO) vessels. They have to earn the rates to cover budgeted operating costs and dry dock, estimated interest expense, payable at hire, and corporate overhead costs.

    By Katie Dale
  • Energy & Utilities

    7 points that reflect tanker fundamentals say recovery isn’t looming (Part 4)

    Continued from Part 3 The importance of capacity Capacity, in a commoditized industry like shipping, 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 use idle ships and cover fixed costs. This will lower […]

    By Xun Yao Chen
  • uploads///Industry Sector and Market Performance    e
    Energy & Utilities

    An ETF that invests in Soros’s dry bulk shipping experiment

    Investors seeking exposure to dry bulk shipping who don’t want to buy six companies like Soros did can use the Guggenheim Shipping ETF (SEA).

    By Xun Yao Chen
  • uploads///US Crude Oil Rotary Rig Count    e
    Energy & Utilities

    US oil production expected to hit record in 2013, negative for tankers

    US oil rig count is a leading indicator of US oil production and oil imports. Since 2008, a boom in US oil industry has negatively impacted demand for tankers (see Tankers will likely underperform dry bulk ships in 2013)— vessels that transport oil across ocean. Higher US oil production, due to application of technologies called […]

    By Xun Yao Chen
  • 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///Crude Oil Price    e
    Energy & Utilities

    Egypt tension pushes oil past $109, shipping rates rise, but downside for tankers

    Tanker stocks tied to oil prices Tanker stocks often move in tandem with oil prices in a demand-driven market. But because tanker companies also use oil to run their ships, a price increase in oil due to supply shocks (such as political disruptions in the Middle East) also affects tanker firms differently. To get a […]

    By Xun Yao Chen
  • Energy & Utilities

    Why the Baltic Dry Index is decreasing

    The Baltic Dry Index measures the cost of major raw materials. The raw materials are transported by sea in the global economy. It indicates a strict demand supply price situation.

    By Katie Dale
  • 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
  • Energy & Utilities

    Why Frontline is on the verge of bankruptcy

    Industry analysts suggest that investors should avoid Frontline because of the bankruptcy risk. Currently, the company is facing bankruptcy. This is led by the $190 million bond that’s due in April 2015.

    By Katie Dale
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    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
  • Energy & Utilities

    Why high shipping capacity growth will continue to pressure tanker earnings

    Update to Shipping capacity growth drops but outpaces demand, negative for tanker stocks The importance of capacity 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 […]

    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///Orderbook crude
    Energy & Utilities

    Must-know: Why the crude tanker orderbook is expanding

    In order to assess the industry’s fundamental outlook, managers use the oil tanker orderbook. It’s an important yardstick. It includes the number of ships that have been ordered and the number of ships under construction. A rising orderbook usually suggests that oil tankers have a better expectation for future supply and demand dynamics.

    By Katie Dale
  • uploads///US Crude Oil Rotary Rig Count    e
    Energy & Utilities

    Why the flat oil rig count won’t hinder product tanker demand

    US rotatory rig count: The forefront of future oil production The US Crude Oil Rotary Rig Count is a valuable indicator that shows how much drilling activity is occurring in the United States, tracking the number of rotating drills that are drilling into the Earth’s crust in search of oil or developing oil wells. The […]

    By Xun Yao Chen
  • uploads///Article
    Materials

    Tankships seeks to expand its fleet size through acquisitions

    Tankships seeks to expand its fleet size through timely and selective acquisitions of additional secondhand modern tankers and the available optional vessels.

    By Katie Dale
  • uploads///BDI Yoy
    Energy & Utilities

    Dry bulk opportunity: The Baltic Dry Index might have bottomed

    The BDI (Baltic Dry Index) is a widely followed metric that reflects the overall rates of moving dry bulk cargoes like iron ore, coal, and grain across water.

    By Yanyu Mao
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    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
  • uploads///China Interbank Repo  Months    e
    Energy & Utilities

    Must-read: Financial woe abroad drags tankers down, outlook negative

    Continued from Why oil price is a key driver of tanker stocks 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 […]

    By Xun Yao Chen
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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///Crude Tanker Orders Ratio    e
    Energy & Utilities

    Weekly tanker digest: Have fundamentals changed? (Part 2)

    Continued from Part 1 The significance of ship orders One measure that reflects managers’ assessment of future supply and demand differences is the number of ships on order. When managers expect future demand to increase more than supply, if they also expect to generate profits with the investment, they will often place new ship orders. But […]

    By Xun Yao Chen
  • Energy & Utilities

    Why Canadian crude exports to the US are on a high

    According to the U.S. Energy Information Administration (or EIA), for the week ending September 12, 2014, U.S. crude oil imports from Canada hit a record high of 2.99 million barrels per day (or bpd). This was a 20% increase from the same period last year. Meanwhile, the four-week average on September 12 was 2.93 million bpd.

    By Katie Dale
  • uploads///TNK Global oil demand
    Industrials

    Outlook for global growth and tanker fleet for Teekay Tankers

    Looking ahead to 2015, Teekay Tankers Ltd. (TNK) forecasts 2.0% net global tanker fleet growth with major contribution from the product tanker sector. There is a negative fleet growth estimate for the Suezmax and uncoated Aframax sectors.

    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
  • Energy & Utilities

    Why the Baltic Dirty Tanker Index going south

    Analysts and money managers follow the Baltic Dirty Tanker Index (or BDTI). They follow the Index to assess the crude oil shipping industry’s revenue and earnings potential. The Baltic Dirty Tanker Index decreased to 699 on August 29, 2014. It was 826 at the beginning of the month.

    By Katie Dale
  • Energy & Utilities

    Weekly product tanker capacity growth rises, crude tanker falls

    While annual capacity growth still remains above 3.5% for crude tankers and even higher for product tankers, it has come down since April, which is a positive sign.

    By Xun Yao Chen
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