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Paragon report examines dry bulk shipping

Dry bulk shipping stocks have struggled early in the New Year as the continued oversupply of shipping vessels weighs on pricing. Meanwhile, concerns of...

Freddie Pierce
|Jan 6|magazine6 min read

Dry bulk shipping stocks have struggled early in the New Year as the continued oversupply of shipping vessels weighs on pricing. Meanwhile, concerns of an economic slowdown in China have also weighed on the sector. Helping to pull down rates early this year, China recently allowed one of Vale's vessels to dock earlier this month.

A Paragon Report examines the outlook for companies in the Shipping Industry and provides investment research on DryShips, Inc. and Genco Shipping & Trading Ltd. Access to the full company reports can be found at: www.paragonreport.com/DRYS and www.paragonreport.com/GNK.

The Paragon Report provide investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them.

The Baltic Dry Index has slipped to its lowest levels since August as a drop in market activity following the Christmas and New Year's slow period weighed on the cost of shipping dry bulk goods. The Baltic Dry Index slid to 1552 on January 4, 2012 compared with 1856 before Christmas.

The Baltic Dry Index includes pricing for Handymax, Supramax, Panamax, and Capesize dry bulk containers. Capesize, Panamax, Supramax and Handysize were 2768, 1599, 1140 and 566 respectively.

DryShips, through its subsidiaries, engages in the ownership and operation of dry bulk carriers and drilling rigs that operate worldwide. In its most recent quarter, dry bulk carrier revenue at DryShips was $88.6 million, down 23 percent year over year. Time charter equivalent revenue was $85.5 million, down 20.9 percent year over year. Time charter equivalent (TCE) was $27,011, down 15.3 percent year over year.

Genco Shipping & Trading Limited engages in the ocean transportation of dry bulk cargoes through the ownership and operation of dry bulk carrier vessels worldwide. Last month the company announced it has entered into separate agreements to amend or waive provisions of its $1.4 billion revolving credit facility, its $253 million senior secured term loan facility and its $100 million term loan facility.

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Edited by Kevin Scarpati