Baltic Dry Index Soars - Dry Bulk Shipping Stocks

The Bedford Report reports on the Shipping Industry and provides investment research on DryShips, Inc. (NASDAQ:DRYS) and Genco Shipping & Trading Ltd. (NYSE:GNK).

The press release is quoted as saying,

The Baltic Exchange said that rents for the world’s 1,237 capesize ships, comprising 40 percent of the dry-bulk fleet, declined 43 percent in the past 12 months, as growth exceeds supply. The capesize fleet is forecast to grow by 14 percent in 2011 and outpace demand until 2014, capping any rates recovery, according to a report from Bank of America Merrill Lynch.

On the upside, a massive jump in iron ore and coal cargo has allowed the Baltic Dry Index (BDI) to reach its highest levels in eight months as the cost to hire vessels that haul iron ore and coal pushed earnings for some cargoes over $40,000 a day.

For the complete press release, click here.