DryShips Inc (fka DRYS)

[Net-Man]

Sentiment is beginning to shift. 2017 was likely the pivot point where demand began to catch up with supply of ships. The order book has remained low for most classes of ships. The wild card will be how much scrapping will occur during 2018 and beyond. The looming sulfur and BWTS regs will no doubt will make many ships non-economical and see those ships sold off for scrap. I am guessing this will start in earnest late 3Q this year and continue into 2019.

With demand pressures and reduced supply, rates will continue rising this spring and surge in the third and fourth quarters. Investors reducing their shorts is a good sign. Watch for DRYS earnings next month and the pps run up to earnings.

http://www.hellenicshippingnews.com/shipping-commodities-trade-trends-a-sign-of-positive-things-to-come/