Dry Bits Week 1

Top & Bottom 5 Day: BALT 10.88 +6.56%, GLBS 10.11 +11.58%, TBSI 3.72 +28.27% >>>
SHIP 0.92 no change, PRGN 3.40 -0.87%, DRYS 5.40 -1.63%. The folks that did not expect to see TBSI a leader and DRYS a laggard have not been reading Dry Bits. The equities enjoyed a week of separation from the Baltic guidance, but buyers beware! Share prices follow Baltic direction.

The Baltics: BDI @1519 -14.32%, BCI @1865 -20.50%, BPI @1936 +4.93%,
BSI @1341 -10.18%, BHSI @770 -7.11%. The Cape routes dropping over 20% should cause restlessness. As predicted the Cape/Pmax ratio has inverted and assumes Kadywhompus status. Average TCE rates for Supramax and Panamax vessels are both higher than the Capesize earnings.

The Fixtures: Ore =12, Coal =5, Petcoke =1, T/C =49, Period =4, total =71. We only have 3 days of data verses the normal 5 days

The Vessels: Capes =18, PPmax =0, Kmax =5, Pmax =26, Smax =18, Hmax =1,
Hsize =1, Bulkers <30K =1, total =71.

Familiar Vessels: Genco Cluadius, Newlead Victoria

Ski Notes: I read an article by a well known industry observer blaming the Cape rate disaster this week on the flooding in Australia. We are of the opinion that foul weather supports rates and the huge drop witnessed this week during the Australian downpour is all the more foretelling of how bad things are getting. With the exception of TBSI and perhaps Globus, none of the bulker equities should have gained in the wake of the Baltic’s decay. Who was it that called American shipping investors stupid?

Good Fortunes
Ski