NEW YORK, NY -- (Marketwire) -- 02/01/12 -- Shipping stocks performed well in January despite the continued downturn of the Baltic Dry Index. The Guggenheim Shipping ETF (SEA) -- which is designed to measure the performance of companies listed on global developed market exchanges and consists of companies within the maritime shipping industry -- is up more than 11 percent year to date despite a global shipping glut that has pushed shipping rates for Capesize vessels down more than 70 percent this year. The Paragon Report examines the outlook for companies in the Shipping Industry and provides investment research on Frontline Ltd. (NYSE: FRO) and Genco Shipping & Trading Ltd. (NYSE: GNK). Access to the full company reports can be found at:
www.paragonreport.com/FRO
www.paragonreport.com/GNK
The Baltic Dry Index (BDI), which tracks worldwide shipping rates for dry-bulk cargoes in four vessel classes, has collapsed more than 50 percent so far this year. Hong Kong-based Macquarie Research argues that the drop represents "too much capacity in the face of more modest growth of trade volumes."
According to a recent report from Reuters, slow demand from China is further compounding fleet growth troubles. China's lessened demand for raw materials could "pressure earnings" for shipping companies in the coming quarters, Reuters adds.
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the shipping industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.
Despite the bleak outlook, Shipping stocks are up year-to-date. Shares of Frontline Limited skyrocketed more than 20 percent in January. Frontline is engaged primarily in the ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. The Company operates tankers of two sizes: very large crude carriers (VLCCs), which are between 200,000 and 320,000 deadweight tons, and Suezmax tankers, which are vessels between 120,000 and 170,000 deadweight tons.
Genco Shipping shares surged more than 7 percent in January. Genco Shipping & Trading Limited engages in the ocean transportation of drybulk cargoes through the ownership and operation of drybulk carrier vessels worldwide.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer.
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