Market Overview

Here's The News That Sent Shippers Higher This Morning

Here's The News That Sent Shippers Higher This Morning

The volatile shipping space is once again in the news, with two news releases from companies in the space bringing it back on investors' radar.

Euroseas To Buy A New Vessel

Greek shipping company Euroseas Ltd. (NASDAQ: ESEA) announced Wednesday it has signed an agreement to buy Hull DY 160, an Ultramax dry bulk carrier of 63,500 dwt built 2017 from Dayang Shipyard. The vessel will be delivered in January. With this, the company said its fleet would have increased to 15 vessels.

Diana Negotiates A Price Cut On Purchase

Meanwhile, Diana Shipping Inc. (NYSE: DSX) said in a release it has signed an agreement with China Shipbuilding Trading Company and Jiangnan Shipyard to reduce the contract price and change the delivery date of the two Newcastlemax dry bulk carriers.

From the originally contracted price of $48.7 million per vessel, the sellers have agreed to trim prices by $1 million apiece. The delivery date will now be on January 4.

The company also announced the signing of a time charter contract with SwissMarine Services S.A. for the Newport News, currently under construction, for 22 months to a maximum of 26 months.

The purchase of a new vessel will be perceived as a definite positive by the markets, as they would see it as an expression of confidence in the future. The price cut on vessel purchase is also a positive, given its cushioning impact on the bottom line.

Shipping Stocks Turnaround

Following Donald Trump's election, sentiment toward the shipping space has improved. Added to that, China's economic resilience and the recovery in the Baltic Dry Index have all proved salubrious for the stocks. Although the gravity defying rally seen intermittently may not be justified the improvement in fundamentals, there is no denying of the fact that things are looking up for these companies.

At Time Of Writing

  • Euroseas was rallying 15.56 percent to $2.21, however volumes were below-average.
  • Diana Shipping was gaining 0.65 percent to $3.12.
  • Diana Containerships Inc (NASDAQ: DCIX) was surging up 11.53 percent to $3.39.
  • DryShips Inc. (NASDAQ: DRYS) was advancing 3.09 percent to $4.99.

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