As a freight and logistics company, FreightExchange keeps an eye on what’s happening in our industry. This story from hellenicshippingnews.com caught our attention:
Will a six-year-old bet on dry bulk recovery finally pay off?
The first ingredient of ocean shipping’s ‘buy low, sell high’ recipe is a large pile of speculative cash to gamble on a recovery that remains hypothetical. To score blowout returns, investors must buy ships when most people believe doing so is a terrible idea.
The second ingredient in the recipe is for freight and asset markets to rebound and prove the doubters wrong.
Few investors in New York appear to have the stomach for this, making the recent achievement of Eagle Bulk such a rarity. Eagle Bulk raised cash for growth in the U.S. capital markets while still reporting losses. That used to be a common dish; it isn’t any more.