Frontline Ltd (FRO)

[TerribleTwit]

As soon as infrastructure spending takes off again... which will be soon.

The Baltic Dry Index (BDI), a measure of costs to ship dry-bulk commodities such as grain, coal and iron ore, in 2012 posted its lowest average in 26 years. The BDI on Friday had a reading of 745, an increase of 16 percent when compared to the 26 year low seen on Feb. 1, 2012, according to data from Bloomberg. RS Platou Markets predicts shipping rates for Capesize vessels will average $11,000 a day in 2013, $19,000 a day in 2014, before nearly trippling to $30,000 a day in 2015.

"The slowing trend in fleet growth during the course of the year should create some upside potential for improving fundamentals in the second half of 2013.