Image Source: Airviews Photography
Structure of the Shipping Industry
The shipping industry is cyclical with extreme volatility in charter hire rates and profitability. The degree of charter hire rate volatility among different types of dry bulk vessels also varies wildly. The Baltic Dry Index (BDI), the daily average of charter rates in selected shipping routes, is viewed as the benchmark to monitor the movements of the charter market and performance of the entire dry bulk shipping market. Cargo shipments and trade financing for the purchase of commodities carried by sea are key drivers of demand. We don’t like the industry at all given its largely unpredictable pricing dynamics.
We no longer publish reports on stocks in the Shipping industry.