It's Now Cheaper To 'Buy' A Dry Bulk Freight Tanker Than A Starbucks Coffee
. . . and you really can buy one for a buck, well actually 6 for a buck, so can you spare 17cents?
"Goldenport, one of the last shipping companies left on the London Stock Exchange, has delisted from the market and sold off six of its remaining eight vessels for $1...
The giveaway reflects the most dismal shipping conditions in decades, caused by economic slowdown in China combined with an oversupply of vessels due to a building spree during a previous boom and the fact that "average daily hire rates have fallen below even a vessel’s daily operating expenses."
The Greek owners are looking for buyers for two remaining vessels and are taking Goldenport off the stock market, saying it no longer makes sense to list shares which have dropped from highs of $100 in 2007 to less than 2c now.
John Dragons, the chief executive of Goldenport, said “Dry bulk vessels generally have fallen in value by around 60% over the last year partly because of extreme oversupply and partly because of low demand for coal as China moves towards renewable energy to curb [carbon] emissions," adding that “The prevailing market conditions are probably the worst of the last 30 years.'"
The canard I've heard most recently is the Baltic Dry Index doesn't matter. Well, it does if you are in shipping, or are interested in the state of worldwide shipping, or the health of the shipping industry.
It probably means nothing, never mind, move along, move along.