It's not the first time I am try to bring everyone's attention to the fact that Global Trade is still collapsing much faster than anyone expected, and thus recent rebound in prices of the dry shipping stocks is likely to be a very temporary phenomenon. The most recent confirmation of continuing troubles came today from the former "momentum darling" DRYS... What can I say- cyclical downturn, overcapacity and excess leverage adds up to TROUBLE!
DryShips plunges as it warns may breach terms of its debt, announces large share saleNEW YORK (AP) -- Shares of DryShips Inc. lost more than a quarter of their value Thursday after the Greek drybulk shipper announced that it was in violation of some of its debt terms.
The company also said it plans to sell most of its shares to preserve its liquidity.
If anyone is still drinking Cool Aid by believing the good times are coming back to the sector soon- look at this slide show from Guardian...
Archive Comments (2)
It's not just the dry shippers feeling the brunt of the slowdown. The December numbers for air cargo shipments were abysmal (-22% YoY). Air cargo represents 35% of all intl trade.
"The 22.6% free fall in global cargo is unprecedented and shocking. There is no clearer description of the slowdown in world trade. Even in September 2001, when much of the global fleet was grounded, the decline was only 13.9%," said Giovanni Bisignani, IATA's Director General and CEO."
http://www.iata.org/pressroom/pr/2009-01-29-01.htm
Posted by greedsgood January 29, 2009 7:25 PM
I agree. The slowdown is so severe that we are almost guaranteed to see civil unrest in several countries... I am betting most Asia and Latam are only entering the most difficult stage now...
Posted by dishwasher January 29, 2009 10:39 PM