Has the Baltic Dry Index hit bottom?

Bloomberg reported that the Baltic Dry Index may have seen its bottom and might be on the way back up.  This would be neutral news for Safe Bulkers Inc. (SB) because 79% of their ships are rented out already for 2011.  Their fleet, including newbuild vessels still under construction, are over 50% rented out for 2012 and 2013.
I don't think that the Baltic Dry Index has seen its bottom yet.  China's real estate/construction bubble has not burst yet.  When it does a lot of dry bulk ships are going to have to find new renters with new cargos.  Dry bulk shipping prices will drop.  That's when Safe Bulkers will shine because it has long term contracts with several customers.
Disclosure:  I don't own Safe Bulkers right now.
Subscribe today for free at www.myhighdividendstocks.com/feed to discover high dividend stocks with earning power and strong balance sheets.
Be seeing you!
Published in: on February 12, 2011 at 10:31 pm  Leave a Comment  

The URI to TrackBack this entry is: https://myhighdividendstocks.wordpress.com/2011/02/12/has-the-baltic-dry-index-hit-bottom/trackback/

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: