Baltic Dry Index Sees Worst Quarter in 14 Years as Oversupply and Low Demand Continues to Plague Industry
NEW YORK, NY--(Marketwire - Oct 12, 2012) - After an impressive start to the year shipping stocks have struggled as concerns regarding slowing economies in China and Europe have seen iron ore and coal shipments fall. The Guggenheim Shipping ETF (SEA) has fallen 15 percent in the last 6 months, after surging 25 percent in the first quarter. Five Star Equities examines the outlook for companies in the Shipping Industry and provides equity research on Diana Shipping Inc. ( NYSE : DSX ) and Excel Maritime Carriers Ltd. ( NYSE : EXM ).
The Baltic Dry Index (BDI), a measure of costs to ship dry-bulk commodities such as grain, coal and iron ore, has fallen by 50 percent this year. The BDI recently posted its worst quarter in 14 years
as oversupply and weak demand has continued to plague the industry. According to data collected by Bloomberg from the Baltic Exchange, during the third quarter the index's average reading of 848 was the lowest since the third quarter of 1998.
Numbers from the world's largest shipbroker, Clarkson PLC, have shown that
the largest fleet ever is competing for business in the current period, despite slowing demand from China.
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