What a hoot, from CNBC - you can’t make this up:
By Daniel at 27 October, 2009, 7:08 pm
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“These Shipping Stocks Have Room to Run: Maritime Expert
Published: Tuesday, 27 Oct 2009 | 12:58 PM ET Text Size
By: JeeYeon Park
CNBC News Associate
…..The Baltic Dry Index, a leading economic indicator used by market insiders to gauge gloobal demand for goods, is up 300 percent, quadrupling in value. Does it have more room to run and what does it say about the overall economy? Doug Mavrinac, head of maritime research at Jeffries, shared his insights.
…..“The index is a relatively good predictor and indicator of where the economy is,” Mavrinac told CNBC.
…..“Based on where rates are today, it’s not oversupplied and the increase that we’ve seen today is primarily due to the Chinese importing record levels of iron ore and of coal. So it’s fairly indicative of what’s going on globally.”
…..Mavrinac said the dry bulk shipping stocks still have more room to run.”
Goodness gracious, where do they find these people? The Baltic is a measure of RATES, NOT DEMAND!!! The shipping lines are shedding ships as quickly as possible, latest news is for a 33% cutback at some shipping lines in December due to the drop off after the already weak holidays. It is this CUTTING OF CAPACITY that has fueled the weak increase in rates, not any increase in shipments! The rates are still well off the Jun peak for this year, not even 25% of 2008’s peak. What a joke!!
Written by irishscot2
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