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Is this indicator signaling gloom?

Jul 2, 2010

Equitymaster discusses why investors must look at the Baltic Dry Index to assess opportunities and risks for the global economy.

Impact of scrapping of single-hull vessels

Sep 11, 2007

Following some big accidents in seas, environmental regulations have hardened for single hull tankers. The International Maritime Organistaion (IMO) has stipulated that all single hull ships be scrapped by 2010. According to Teekay Shipping, at the end of 2006, close to 25% of the world tanker fleet was single-hull.

Dry bulk rates: What to expect?

Sep 4, 2007

Freight rates for Capesize, the largest dry bulk carrier (used to transport coal, iron ore and other dry commodities) continue to scale new highs on firm demand to move cargo across the Pacific.

Offshore services: Will history repeat itself?

Aug 21, 2007

They say history repeats itself. Nothing fits this adage better than a cyclical business. Thanks to high oil prices, exploration and production activities have grown manifold over the past two years, driving up the rates for offshore assets like rigs and offshore support vessels (OSVs) to unprecendeted levels.

Tanker freight rates: Where are they heading?

Apr 16, 2007

Tanker freight rates across segments (VLCC, Suexmax, and Aframax) continue to remain highly volatile. As can be seen from the table below, freight rates for VLCCs (very large crude carriers), averaged US$ 40,222/day in FY07, with the highest average rates of US$ 59,136/day recorded in August 2006 and the lowest average freight rates of US$ 22,189 recorded in April 2006. Similarly, freight rates for Suezmax averaged US$ 37,170/day in FY07, with an average high and low of US$ 52,949/day and US$ 25

Varun Shipping: Sailing ahead

Apr 12, 2007

Formed in 1983, Varun Shipping Company Limited (VSCL) is a niche player in the shipping industry. The company focuses on the mid-size LPG carrier segment. It boasts of a well-diversified fleet that comprises 12 LPG carriers, 1 product tanker, 3 crude oil tankers and 3 AHTS (anchor handling tug supply vessels). As of 31st March 2006, VSCL owned 76% of the total LPG tonnage (on dwt basis) under the Indian flag.

Identifying a shipping stock: Do's and don'ts

Jan 8, 2007

Shipping industry is a primary means of international transportation of any essential commodity.

Global shipping: Riding the tide!

Mar 11, 2005

The year 2004 has been pretty volatile for the global shipping industry, including the Indian players, as freight rates were impacted by uncertain moods of the oil market and a natural disaster towards the end of the year. Rising global oil production and demand led to shipping companies ramping up capacities (especially tanker tonnage) on a fast footing. Consequently, tanker freight rates strengthened to their highest levels in the final quarter of the year (October-December 2004). Apart from t

SCI: Good times, ahoy!

Nov 19, 2004

The rise in commodity and crude prices may be a bad news for the global economy. But it has been a dream run for shipping companies, globally and in India, over the last eight quarters. The performance of Shipping Corporation of India (SCI) reflects the underlying strength in freight rates and the resultant improvement in profitability.

GE Shipping: In smooth waters!

Nov 1, 2004

GE Shipping, India’s largest private sector shipping company, announced robust results for the quarter and half-year ended September 2004. Apart from strong growth in the topline, aided by rising global trade and buoyant freight rates, the company has managed to expand its operating margins for both the periods. This expansion could be attributed to firm freight rates in the global waters.

Global shipping: On high tide!

Aug 23, 2004

The year gone by, beginning July 2003, has been particularly rewarding for investors in shipping stocks. As can be seen from the graph below, domestic shipping major, Great Eastern Shipping (GESCO) and global major, Teekay Shipping, have grossly outperformed their respective benchmarks. While the run-up in these stocks started in the second half of 2002, the actual fillip came in middle of 2003, as global trade looked for a promising future ahead.

GE Shipping Vs Teekay Shipping

Jun 17, 2004

Unlike other sectors, shipping is a global industry i.e. freight rates, demand for tonnage and profitability are closely linked to the progress in global trade. In this article, we will discuss about the contemporary global shipping industry and see where two shipping majors, Great Eastern Shipping (or GE Shipping) and Teekay Shipping, stand among the whole scheme of things. As a matter of fact, while the former is the largest private sector shipping company in India, the latter shares its place

GE Shipping: On high waters!

Apr 20, 2004

The shipping industry has its fortunes highly correlated to those of the global trade. As such, companies from this sector usually have growth rates that are highly volatile, very much in line with the precariousness that characterises global trade in merchandise. Now, the last year has seen shipping companies benefit largely from a pickup in global trade and, consequently, freight rates. This has helped them not only in improving their topline performance but has also aided a better utilisation

Dredging Corp.: An overview

Feb 25, 2004

The Dredging Corporation Of India (DCI) was established in 1976 to provide dredging services to the major ports of the country in India. It is not only involved in capital dredging (it is the process of removing the ‘virgin’ soil to create the designed depth in the water bodies/adjacent to water bodies), but also works towards deepening of existing harbors and maintenance dredging (it is the process of removing the accumulated material in the existing ports and harbors) at various ports along th

Concor: An overview

Dec 22, 2003

Container Corporation of India (Concor) is a subsidiary of Indian Railways. The company provides logistic solutions through various terminals connected through railways (28), roadways (6) and ports (5). With more than 8,000 owned and leased containers, the company is one of the efficient logistic companies in India.

GE Shipping: 4QFY03 push

May 7, 2003

Though the first nine months performance of GE Shipping was disappointing in light of weakness in world economy and the consequent impact on freight earnings, the company has reaped the benefit of an upturn in 4QFY03. While revenues have increased by 4%, higher realisation and capacity utilisation have led to a noticeable improvement in operating margins in the same period. The better than expected 4QFY03 numbers have improved FY03 performance as well.

Shipping: Taken aback

Apr 3, 2003

Shipping companies saw a reversal in fortunes in the fiscal year 2003. After riding on the back of a sharp spurt in freight rates in 2001 that had a spillover effect on 2002, the impact of the September 11 has been significant on the shipping sector in 2003. Except for a brief period in the third quarter of 2003, there was not much in offer for Indian shipping majors.

SCI: Long way to go

Mar 31, 2003

Shipping stocks have been in the limelight on the bourses over the last one month or so amidst war concerns. The reason for the optimism seem to stem from the fact that freight rates have increased in conjunction with the rise in crude prices in the international markets. Shipping Corporation of India (SCI) has also moved up. However, things are not as rosy as they seem.

SCI: Beyond disinvestment

Nov 13, 2002

Shipping Corporation of India (SCI) has been on the decline on the bourses with disinvestment sailing into rough weather in the last three months. Apart from disinvestment, the global slowdown continue to hamper current growth prospects of the company and is reflected in 1HFY03 numbers.

GE Shipping: Mirroring the global economy

Oct 30, 2002

The Great Eastern Shipping Company (Gesco) has posted a sharp fall in revenues for the second quarter ended September 2002. The performance of the company mirrors the slowdown in the global economy and weak industrial output. However, the company has been able to report over 17% bottomline growth backed by operating efficiencies, lower interest and depreciation outgo.

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