According to the Forbes article you may have already read, the market reaction is overdone. This was created by a combination of saber rattling by the Chinese and scared investors. We did see a surprise drop in shipping rates, however the fundamentals of the industry are unchanged. There are not enough ships and the emerging economies are still booming, creating a very tight market for importers. If we determine that this is China making themselves heard, we should regain our footing to retake the 52 week highs. Today is going to be an importan day in making that determination.
Avg Vol (3m): 103,094
At this rate it will take about 3 or 4 days for Credit Suisse and Cantor Fitzgerald & Co, Oppenheimer & Co and DVB Capital Markets to sell 11 million shares.
A panamax? Yes, it seems that would be the idea, if they can find one available. For $90M it seems possible. If rates stay up here the payoff on one ship could be 2 years on the spot market!! FREE has my attention. This bubble should be good for at least a couple more years.