In a reportentitled “Don’t Jump the Gun” Benjamin Nolan of Stifel said there’s a chance thatit could take several months for freight rates to rebound, which could in turndrive US-listed bulker stocks lower if levels were to continue to hover at ornear breakeven.
“Since the beginning of 2014, dry bulk rates, and specifically capesize rates, have experienced a virtually uninterrupted free fall,” Nolan, the US investment bank’s top shipping researcher, explained in a late-breaking note.
“While many investors expected the collapse as part of the normal trading pattern in which Chinese iron ore buying and ship demand fall in conjunction with the Chinese New Year there are also strong expectations among market participants that rates are likely to bounce immediately back to...
