Strong recovery in the shipping industry is expected

Author:Ricky
Release Date:2014-08-26

Since August, the Baltic DryIndex (BDI) continued to rise, from 751 up to 1088, or nearly 50 percent. Investment Advisor in Senior Fellow, said the BDI rose mainly due to the increase in traffic caused by the ore. On the one hand, the international mining increased to improve the Chinese iron ore shipments; on the other hand, the current inventory period is filled with seasonal effects. BDI is the study of future performance and investment value of shipping companies important index. BDI warming for shipping companiesThe earnings improvement play a good role, but also greatly boosted the market sentiment.

With the "Golden September and Silver October," approaching, BDI index opened the round stabilized rebound, it is accelerating upward since August, sweeping away the tide. It is reported that the rapid rebound in BDI index mainly due to Capesize shipping prices rebound, the ship carrying a large amount, usually at more than 100,000 tons of goods to iron ore and coal based. Societe Generale Securities [-2.53% & nbsp; capital & nbsp; research report] analysts believe that iron ore is expected to continue to push Capesize, capesize market will continue to improve, driven BDI recovery. Coal, the recently Shenhua Coal Group has raised the price of coal and other large, plus summer stocking boost import demand has been warmer. Demand for iron ore and coal in favor of pushing up the dual BDI index.

Widely believed, BDI index rose to the shipping industry recovery will undoubtedly bring a touch of dawn. Currently shipping industry at the bottom of the recovery state, long-term bullish on the industry's supply and demand elasticity improvement and profitability. On the other hand, the recent emergence of the shipping industry chain of three positive changes: new shipbuilding prices push asset value of the ship picked up, operating cash flow will be improved due to lift tariffs, exchange rate depreciation in emerging countries indirect drive demand. Downturn in the shipping industry for many years there have been signs of a strong recovery and help increase the performance of shipping companies, shipping sector on the capital market is also expected to get funding for concern.

Shenzhen, Hong Ming Logistics Co., Ltd. is a professional international freight forwarding company, main business is international shipping, international air and international express delivery and ancillary services. Ricky: sales21@swwlogistics.cn, www.swwlogistics.com