FREE only announces earnings annually. You should see the report about May of 2015. And the BDI while up is NOT helping FREE's revenue. They barely have any ships left and they are all tiny handy sized bulkers that don't haul coal or ore generally.
The insurance isn't much when it's sitting in some far off port swinging on it's anchor. Unlike when the DRYS Oliva ran into an island in the middle of nowhere, sinking and spilling oil all over some penguins, there isn't much to insure against. Yeah, the hull and machinery would need coverage against sinking, but that wouldn't be all that much. And if the time in cold lay up was expected to be very long (years), you'd sell or scrap first.
When a vessel is idle, it almost never is at a berth. It is either moored or just drops anchor. There are fees for that as well, however. Then there is the crew. A hot layup is when the vessel is ready to get underway immediately. Takes full crew. A warm layup is with just a skeleton crew and would take a day or two to get the vessel prepared for a voayge. A cold layup is where they take the vessel to some far off port and anchor it with out crew and the ship prepared for extensive down time. Costs about $30-50k to prepare a vessel for such down time as well as the fuel costs to sail to these far off ports.
Yes it's barely up, but at least it's not at $75 like so many of those "doom and gloomers" predicted last week when it fell to $80 for a brief time. I imagine that if it had fallen to $75, they'd say, "$70" next. And so on every few bucks down.
Who knows what they do with the assets? Probably auction off the iffy vessels and the high bidder may well be a breaker in Bangladesh or Pakistan. They certainly wouldn't let them sit in a port like you say.
What do you know about the company? Or is it just a stock symbol and a chart to you?
LOL! Seems the downgrades are not having the desired affect any more. Maybe everyone understands the relationship between low oil and the drillers and the risk that a dividend paying company might cut the dividend if they felt it necessary. Maybe they also understand that oil can go back up, demand worldwide is actually growing still and that many sources of oil are declining and those reserves need to be replaced.
Tax selling can be done at any time. Just have to wait 30 days to repurchase. If some sold at $22 recently, say October 10, they can repurchase the shares on Nov. 10 or so.
Right now the price of scrap steel is low. The exchange rates for the countries that do most of the breaking up of large vessels are way down. A real shame because the rates would otherwise cause owners to send the elderly vessels to the breakers if they could get decent prices for them. Right now the best they could get is low $400s per LDT.
What is the BHSI?
I am herby downgrading SDRL. It turns out low oil is bad for drillers and it is possible that SDRL may cut the dividend some day if they run short of cash.
Vale is ready to fix a string of capesize vessels in a move that may finally kick-start a fourth quarter upturn in the spot market, Danske Bank says.
With its time chartered tonnage tied up on Far East voyages market rumours suggest Vale will take a large number of capesizes in the Atlantic, analyst Bjorn Kristian Roed explains.
“This should position the capesize market for a rate rally in the weeks to come, if the rumours proves to be correct,” Roed said in a report this morning.
He notes FFAs for November and December have risen from $13,800 per day on Friday to $18,250 and $18,700 daily now.
This compares with the $9,148 available in the spot market yesterday following two successive sessions of progress.
It was an "eksplosive" move
Baltic Dry-indeksen smeller opp 12,0 prosent til 1.090 poeng tirsdag.
Capesize 12.580 dollar (+ 37,5 prosent)
Panamax 8.265 dollar (+ 3,7 prosent)
Handysize 7.280 dollar (- 0,1 prosent)
Supramax 9.529 dollar (- 0,5 prosent)
is bad for drillers and that SDRL may cut the dividend some day if they have the need to do so?