Dont know if this has been posted.
Sector Snap: Drybulk shippers soar as rates rise
AP ONLINE
Posted: 2009-01-09 15:05:00
NEW YORK (AP) — Drybulk shipping stocks leaped Friday as the rates for the biggest drybulk vessels on the seas hit their highest point since October.
Capesize vessel rates jumped 20 percent Friday, Dahlman Rose analyst Omar Notka said, as excess vessels supply continues to shrink, driving up prices for remaining vessels. The cost to charter a Capesize vessel has leaped nearly 50 percent in the last week, he said.
Capesize vessels are so named because they are too big to fit through the Panama or Suez Canals and must instead navigate around the Cape of Good Hope or Cape Horn to travel between oceans.
"Other sectors of the market are more muted, but Capesize momentum is carrying through to some extent," he said. Two out of three other vessel classes posted minimal gains on Friday.
Also Friday, Lazard Capital Markets shipping and logistics analyst Urs Dur raised his price target on drybulk company Diana Shipping Inc. to $17 from $14 and reiterated his "Buy" rating, suggesting the company is low-risk compared with its peers.
In afternoon trading, Diana Shipping rose 77 cents, or 5.5 percent, to $14.91. DryShips Inc. gained $1.94, or 12.8 percent, to $17.07 and Danaos Corp. added 75 cents, or 7.9 percent, to $10.21.
News 
Market Data 
Discover 
AI
