DryShips Inc (fka DRYS)

[Net-Man]

An observation that I have made a few times is that worldwide GDP continues to grow each year. Essentially the demand for dry bulk shipping grows each year too. The following is an example what in part is driving growth:

~snip~
3/16/16

Brazilian exports will be supported mainly by demand from the Chinese, according to Alves. “There are signs that China may import more soybeans, with growth of around 6% of the volume imported this harvest, and the main supplier of that soybean to China is Brazil,” he said. Estimates indicate that Chinese imports are set to rise from 78 million tons of soybeans to something in the neighborhood of 83 million tons.
According to projections by the National Association of Grain Exporters, Brazilian soybean exports will increase from 53 million tons to 57 million tons this harvest.

http://www.agriculture.com/news/crops/brazil-soybe-expts-f-february-are-up_2-ar52505


Oversupply of ships is still the underlying problem with dry bulk rates. A contributing factor that has lowered rates is bunker costs. It is much cheaper to fill up the tanks of ship just as it is our cars. This simple fact is reflected in rates. So although rates are off significantly, owners don't need as much to break even because their costs are lower. In order for DRYS to become profitable may not require the BDI to get back to a much higher rate. More on this later...