Baltic Dry Index Rate Soars 9 % Shipping Sector Keeps Climbing

Update on our position on the sector : Jack A. Bass Managed Accounts are not selling – please see last weeks blog entries

These gains are coming as investors recognize this is the entry point to a multi-year recovery.

  • It’s onward and upward for dry bulk names again today, as The Baltic Dry Index posts its largest gain since 2009, rising 9.3% to 1,478. (daily quotes here)
  • The driver: An 8.1% expansion in Chinese iron ore imports. “Steel production in China is defying a seasonal slowdown in prices, allowing mills to absorb high iron ore imports,” a Morgan Stanley analyst quoted by Bloomberg says.
  • After rising 10% overnight Friday, daily capesize earnings jump 17% to $25,426, the highest since December of 2011.
  • GNK +16%EGLE +1.8%DRYS +8.6%SBLK +9.5%DSX +1.3%BALT +5.5%,SB +2.1%NM +2.3%FREE +28%SHIP +11%

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