Shipping Stocks: The Ride Continues

The rollercoaster ride in the shipping sector continued Tuesday, with most widely held stocks managing to overcome some of the previous day's losses.

The Baltic Dry Index reached its highest point in nearly a month because of demand for grain and iron ore, according to Bloomberg, which pointed out that rents for ships that haul grains rose 3.7% to $12,955 a day, after rising 36% the week before. Additionally, rents for ships that haul iron ore rose 4.4% to $20,772.

In other news, Hellenic Shipping News reported Tuesday that the Bank of Greece said in its annual economic report that although it expects the Hellenic shipping industry to remain a global leader, the near-term prospects for the dry bulk sector aren't particularly promising. The bank said it expects carrying capacity to increase 9% this year, despite the scrapping of older vessels due to lower shipping rates and ship values. An ongoing global recession isn't helping matters, either, according to the bank.

That said, the bank took heart in China's economic stimulus plan, which it says should result in more shipments of raw materials like iron ore that will be used for infrastructure purposes. ...