Baltic Dry Massacre Enters 34th Straight Dry As BDIY Plunges 4.5% Overnight

Tyler Durden's picture

The record slaughter of shippers continues as the BDIY posts the largest overnight drop of 4.5% in the most recent 34-consecutive day trounce in dry bulk shipping rates. Short term Capsize and Panamax charters for Pacific delivery have hit $29k and $19k, respectively, both approximately 30% lower than comparable Atlantic delivery rates as the Chinese transit corridor is now massively oversupplied. At this point it is not a question of if but when the bulk of shipping companies, especially levered ones, start going bankrupt and flood the seas with yet more anchored rusting dry bulk hulls.

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10044's picture

Great, more reason for dow to hit 11000 today

Bloodgroove's picture

That's funny.  At least it is to me.  I needed a good laugh today too.  Thanks. 

Boilermaker's picture

I was laughing and crying at the same time...kinda creepy.

Cheeky Bastard's picture

Paging James Altucher .... 

dan22's picture

In order to buy a house, he had put himself at the hands of loan-sharks. The weight of compound interest is too much...  He said he is desperate, and want to sell a kidney to repay debts owed.

"line was to sell their kidneys, but also left their contact details." Yesterday afternoon, members of the public Xia told the newspaper, he was browsing a forum to see the local Hefei to a sale of kidneys of information.'s survey, this users buy a house by a loan shark, now unable to pay, and would like to sell their kidneys for repayment.

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Source:

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China Shark Loan Ponzi Finance- Local Chinese Sell Their Kidneys to Repay Shark Loans

trav7777's picture

ashkenazi iq>chinese iq

Boilermaker's picture

Damn that shipping capacity debacle!

Pritzwalk's picture

still question whether BDIY is a good proxy for SPX...

ZeroPower's picture

Well it hasn't been for the past 6 trading sessions, but the previous 6 (down) were + correlated. Then again go back 6+ more and nothing holds.

Think of this as a LEAP indicator :)

Pritzwalk's picture

right and if you compare spx there does not seem to much of a correlation over any time period?

Cheeky Bastard's picture

Pull the charts independently and observe the correlated decline. Or If you wish so price BDI in terms of SPX value. The value of $BDI was always bigger than of $SPX [theoretical $ points] and when compared the decline in SPX does not really "show" itself to be correlated, but when you price $BDI in $SPX its much more "obvious". 

Slim's picture

When shipping supply (i.e. ships) was relatively constrained it was better - i.e. it was more demand driven.  Now with empty supply floating and orders from a few years ago coming on line it obscures things a bit as the supply is moving too.  One thing is for certain - demand is not outstripping supply to where they need to pull additional vessels from drydock.  At a minimum that would produce sustainable flat pricing as demand steadily racheted up and supply was brought back online at a steady pace to keep price constant. 

Basically, this kicks a sustained V shape recovery theory in the nutz.

Internet Tough Guy's picture

So I said to the somali pirate 'Take my capesize, please!'

Thank you, I will be here all week.

 

Cognitive Dissonance's picture

Try the roast beast. It's to die for.

jkruffin's picture

DRYS has already diluted the hell out of its shareholders, and they will be a penny stock soon as they have no other recourse but to issue shares to stay alive.  I see them bankrupt within a year tops.

aint no fortunate son's picture

between mid 2008 and mid 2009 their shares outstanding went from something like 45MM to 220 MM - Merrill was doing another offering every other month

Sudden Debt's picture

The CEO vowed to not take any more money out of the firm and to stop deluting the stock.

Drys is also way underpriced and one of the fasted growing drybulkers. And the IPO for the drilling rigs should be out arround september so it's very well possible it will pop to 11$

 

jkruffin's picture

They have been promising DRYS shareholders the drilling rig IPO for over 3 yrs now and still have never once attempted to come through.  The man running that company has no intention of giving away this IPO to shareholders as a gift.  DRYS is in no way under-priced either.  It will see penny land before it sees $5 again.  It is THE FASTEST declining shipper. Quit pumping every long position you have, it only shows your desperation.

Sudden Debt's picture

desperation? :)

I'm doing pretty well actually. My guess is that your getting your ass creamed with your shorts :)

And your junks on my posts confirm it

MayIMommaDogFace2theBananaPatch's picture

Who needs UFC?

My money is on thrashing creature with the big teeth (SuddenDebt) -- there is no way that Jr. Big Boy (JKRuff) is gonna take him...

trav7777's picture

Huh?  CREITs like SPG have been paying dividends in stock.

What you describe for DRYS is the proven recipe in this market for the stock to go to 10000

aint no fortunate son's picture

It'll be interesting to see which loan covenants start defaulting first - my bet as always is DRYS - Georgie's ex-wives ain't gonna like THAT!

Sudden Debt's picture

the biggest convenant is in 2012 to be paid. That's still a sea of time

Marla And Me's picture

Tyler, you've got to look at the bright side of things; Thierry Henry just signed with the NYC Red Bulls!

Zina's picture

Are you serious?

Thierry Henry is REALLY at end of career!

Handle with care's picture

Its a move up from playing for France

Zina's picture

What is the difference between the BP oil spill and France's 2010 national football team?

One is a horrendous out-of-control disaster.

The other is an oil spill.

Marla And Me's picture

Next one to make the move states-side:  Ronaldinho.  Mark.  My.  Words.  The MLS in 2010 is like the North American Soccer League in the 70s, minus the fros, drugs, and disco...

Zina's picture

 Pelé earned a lot of money at Cosmos... Now he's a rich businessman.

Horatio Beanblower's picture

Talking about the NASL, simply the Best (the video may be a bit loud) - http://www.youtube.com/watch?v=U2HWUbFGHMU

Zina's picture

Woow!!!

A Dutch defender would have kicked George's head and made the foul on the first dribble..

oddjob's picture

No,the correct answer is the oil spill is not gay.

Merlin12's picture

This good.  Because once we get Cap and Trade the only viable ocean-going carriers will be sailing ships.   Better squeeze the volume down quickly to a level which that technology can support.

Merlin12's picture

Double post - sorry

Headbanger's picture

What then will be the trigger event, the first fracture to make equity markets implode from all this mounting downside pressure?

Internet Tough Guy's picture

The economy is imploding and stocks stay up. What makes you think this will change? It's much easier to levitate the market than the economy.

Cursive's picture

@Headbanger

Excellent question.  Ask myself that everyday.  Maybe the reason it sounds so random is that all the talk of TPTB are real and it's just when TPTB want it to be.  I used to laugh at that, now it seems extremely rational.

MayIMommaDogFace2theBananaPatch's picture

Serious question.  Is anyone else feeling a bit desensitized by ongoing anticipation?

Is it just me?  Can I exhale?

primefool's picture

Singapore GDP growth: First Quarter:45.9%, Second Quarter 26%.

Mortgage Rates : Under 2%. Property Prices: If ya have to ask....

Wow. Chinese selling body parts to speculate in property. West selling soul to speculate in tech stocks. Governments around the world spending most of their waking hours trying to come up with newer , more creative ways to pretend their banks are solvent. Wow.

Everyone needs a good dose of sobering up. Lots of coffee - and need to pass high school physics and calculus before you can sell body parts to speculate - would be my suggestion. Nothing will dry you out faster than having to actually study physics - or a good , complete , purging of the financial system- yeah that would also work.

Bolweevil's picture

"Nothing will dry you out faster than having (only one kidney)."

Cursive's picture

Benron:  "Phuck physics, I'm studying Dadaism."

Jake Green's picture

Nothing a good lobbyist can't fix.

living on the edge's picture

More evidence green shoots are taking hold worldwide.

ziggy59's picture

so. the markets should rally another 200 today?

Leo Kolivakis's picture

Relax, smart money is loading up on shipping stocks! :)

Turd Ferguson's picture

And chinese solar stocks, too...