Paragon Shipping: A Substantial Special Dividend Soon

Shipping Industry Overview I track mainly three sectors in shipping - dry bulk shippers, tankers and containers. The dry freight sector has been hit the hardest - facing over supply from new builds, reduction in demand and quite a few black swans in the recent past. These include floods in Australia, Indian iron ore exports and the Japanese earthquake. Eventually, effects from these events should be reversed. The Japanese rebuild is expected to be a boon for the industry with Forward Freight Agreements already indicating an increase of over 50% in dry freight rates later in the year. Nevertheless dry freight rate and stocks currently continue to remain depressed as seen in the Baltic Dry Index chart below.(Click to enlarge) The tanker sector can be subdivided into dirty tankers (which transport crude oil) and clean tankers (which transport refined products). Though the rates in tankers are not as depressed... Read more

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