Thursday, January 7, 2010

Overall Rise In Baltic Dry Index Boosts Asian Shipping Stocks

Even Bad Weather has a Positive Effect on Shares
Shipping News Feature

ASIA – After pre holiday falls the gradual rise of the Baltic Dry Index this week, at one stage reaching its highest point in a month, has caused stocks in regional shipping groups to pick up this week. With the commencement of a New Year there are positive noises from many analysts who foresee a slow recovery for the sector.

The inclement weather across the world has also produced a positive effect with China suffering from a shortage of raw material supply after the recent surge in demand for iron ore and coal stocks into the country and delays to vessels pushing prices higher. Stocks in the shipping and shipbuilding sectors all rose with NYK, Hyundai Heavy Industries, Hanjin and NOL seeing the biggest jump.

Although nobody expects to return immediately to former heady days the feeling in the region is definitely more positive with indicators from all the major nations pointing toward a steady recovery for freight carriers after the collapses of 2008 and early 2009. Much will depend upon world wide national growth figures in future months and particularly important for the cross sector shipping groups will be adherence to the proposed tariff increases for container traffic and the recovery of the dry bulk sector.