GLG News by Offshore Rigs and Vessel Construction Experts

Fearnley Fonds, as reported by Bloomberg expects dry bulk shipping rates to be "very low" in 1Q09.  I agree that rates will be very low compared with the record highs seen in the last two years, but I expect significant recovery from the lows seen in 3Q08.

The Shipping Digest reported that new orders for export ships in Japan Shipyards was down 80% yoy in November.  These numbers are a very good proxy for other major shipbuilding nations, such as Korea and China.

The recent upwards movement in the BCI is more a reflection of the market conditions that have persisted for the last two months and an upwards correction to reflect actual fundamentals.

The $129M single lawsuit against Fortescue is the tip of the iceberg.  Many of the new entrants drawn into shipping during the bull market are going to get an unpleasant education in the vagaries of maritime law.

Demand for ships and pressure on rates Arbitrage (contango) opportunities

OceanFreight certainly won't be the last company to suspend dividend payments, and it was a prudent move, but renegotiating charters was a poor decision.

Near term prospects for container shipping are grim.

Navios' prediction that up to half of the dry bulk orderbook through 2010 will be canceled won't happen.

Iron ore and steel production cut backs, whether short-term or longer, do not support the current abysmal dry bulk shipping rates.

Tradewinds reported on USS' SEC filing on a likely write-down of their fleet values, continuing the problems facing the Jones Act tanker company.