DryShips Inc (fka DRYS)

[Net-Man]

BDI will trade within a range until after the Chinese New Year ends next month. FF contracts will start moving higher probably as early as next week certainly in Feb. Used ships are selling at higher values while new construction is limited. Scrapping has slowed and the cash price being paid has moved up a surprising amount. Worldwide GDP is moving up.

Throw into all of this BWTS and sulfur emission regs by the IMO and towards the end of this year, scrapping will pick up due to the costs of remediation efforts versus ship valuation.

My guess is spot/charter rates will be higher each quarter this year. 2019 could be a huge year of shippers if the fleet remains at current levels or smaller.

DRYS, at least for now, will move higher but continue to be constrained by the GE effect.