Shipper Forecasts 80% Baltic Dry Rally.
Can Chinese demand spur a massive rebound for the dry bulk sector"s benchmark? Lackluster post-recession demand has weighed heavily on the dry bulk shipping sector, recently sending many of the industry"s public players down by double-digit percentages. According to China Ocean Shipping (Cosco), that all might change by the year"s end. Cosco senior researcher Kong Fanhua told Bloomberg that government-encouraged factory output in China could send the Baltic Dry Index up by 80% by the end of 2009.
As a whole, the Dry Bulk Shipping Stocks Index is ahead by 1% today. It is currently trailing the S&P 500 by -4% over the last month.
Genco Shipping & Trading and DryShips are leading the rally with more than 3% gains. Close behind are Excel Maritime, Navios Maritime Holdings, and Eagle Bulk Shipping. All four remain in negative territory over the last five sessions.
Omega Navigation Enterprises is the Index"s only component to break even over the last week. Paragon Shipping, Diana Shipping, and Excel remain down by more than -10% for the period.
As of this writing the Dry Bulk Shipping Index is one of the 15 worst-performing tickerspy Indexes over the last month, down by -1.1%, though if Cosco"s bold call on the BDI rebound is accurate, there could be plenty of upside for the sector.