It has been a good start to 2024 for US-listed dry bulk stocks as an atypical firming of rates for capesizes lifts the market.
Spot rates for the large bulkers have risen more than 7.5% over the past week, according to a market note from Clarksons Securities on Thursday.
“Earnings now stand at $30,300/day … as Cape rates continue to defy the gravity of the usually seasonally weaker winter season,” analysts wrote.
Investors seem to be taking notice, as a group of New York-listed stocks with capesizes in their fleets saw gains of between 2% and 4% in the first hour of trading.
John Fredriksen’s Golden Ocean Group was leading the way with a 4.1% jump to $10.33. It boasts a fleet of 60 capesizes alongside panamax tonnage.
Seanergy Maritime Holdings, which is a pure-play operator of capesizes, saw shares climb 2.98% to $7.98 in early trading. It owns 16 capesize units along with one newcastlemax.
Petros Pappas’ bulker goliath Star Bulk Carriers logged a 2.5% gain to $20.22. It has 20 capesize and 17 newcastlemax bulkers among its fleet of 117.
New York-based Genco Shipping & Trading climbed 2.6% to $17.22. The John Wobensmith-led owner operates 19 capesizes in what it calls a “barbell approach” to deploying tonnage alongside ultramaxes and supramaxes in the midsize sector.
Diana Shipping shot up 3.9% to $3.19. The Greek owner has nine capesizes and four newcastlemaxes among its fleet of 40.
All the companies also have seen gains in the short 2024 trading window that began on Tuesday.
The good cheer is spreading even to owners who do not operate capesizes.
For example, Connecticut’s Eagle Bulk Shipping gained 2.9% in early trading on Thursday. It employs purely midsize tonnage in the ultramax and supramax classes.
Clarksons said dynamics in the iron ore market continue to underpin the rally.
“With iron ore prices at above $140/t and low Chinese iron ore stockpiles, the demand side continues to be supportive for dry bulk. In the short term, we thus argue that rates for the larger bulkers are likely to be driven by miners’ ability to supply iron ore during the first quarter, a quarter that is usually coloured by weather disruptions in Brazil and Australia,” analysts wrote.
“The bauxite trade out of Guinea ended 2023 on a high note with strong December exports. This trade could offset some of the expected seasonal weakness from the top iron ore exporters this quarter.”
The first-quarter freight-futures agreement at the time of the note was trading at $17,500 per day, analysts said.
