Douglas Mavrinac News

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, continued to rise on Monday, supported by positive capesize and smaller vessel rates. The index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, was up three points, or 0.51 percent, at 594 points. The capesize index rose 12 points, or 2.84 percent, to 435 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $33 to $4,207. The panamax index remained flat at 617 points. Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grains, slipped by a dollar to $4,940.

According to an analyst speaking with the Associated Press for a Feb. 9 report, a flood of new crude oil tankers being delivered this year will bring down vessel rates in the spot market and he has cut his ratings on two companies. Jefferies & Co. analyst Douglas Mavrinac downgraded Overseas Shipholding Group to "Underperform" from "Hold" and lowered Teekay Corp. to "Hold" from "Buy," noting both companies have a large portion of their fleet operating in the spot market, where rates are expected to slip. (Source: Associated Press)