I beg to differ. Yes, BDI is improving, but India economy is in doldrums. Rupee is at historical low against US$, and the economic growth is losing steam.
Actually the strongest bulk carrier that will benefits from the baltic index raise will be golden ocean. High of its carriers are capsizes, it is capsize rates that is pushing up the BDI, the handymax and paramax are just stable. Golden ocean also has a goo track record o profits and when profitable, share its prosperity by giving good dividends.
Why am I not buying yet then? It's secondary listed in Singapore and is super illiquid! If u do manage to get some
Lots, u should take it as a fixed deposit, as u might not be able to sell when u need to.
I will give it a miss. As for courage and Mercator, their vessels are old, had poor track records of profitability. I will give it a miss, but this is not to say these are not good investments, just didn't like it due to my overly prudence approach. U do your own homework an see if u like the risk reward return
Hope u huat.
Btw if u are wondering why old vessel matter, older vessels have lower value, and is less fuel efficient. In such a climate of high oil prices, fuel cost is the main cost in bull transport.
Zen is rather right the capsize rate is strong because of iron ore restocking at china, due to steel demand. So china play a bigger factor here than india
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