Shipping names are rebounding strong Thursday morning, as Diana Shipping Inc. (NYSE: DSX) is up over 4 percent, Teekay Tankers Ltd. (NYSE: TNK) added 1.75 percent, Frontline Ltd. (NYSE: FRO) is up about 2.75 percent and Euronav NV (NYSE: EURN) is up over 3.35 percent. However, the broadly followed The Guggenheim Shipping ETF (NYSE: SEA) has declined 6 percent since the beginning of 2016.
Traders are looking to take advantage of short-term momentum in lieu of a struggling industry saddled with debt and populated with dry bulk names trading at excessive valuations to Net Asset Values (NAV).
Tankers have struggled over the past year as day rate volatility drove uncertainty for those seeking charters. Using data from Credit Suisse, Benzinga plotted the day rates for Suexmax, Panamax, and Aframax shippers since the start of the year:
Declines in rates have been driven by a drop in Venezuela's production industry among other factors such as export declines, dwindling demand for ships to store oil, retiring ...
/www.benzinga.com/analyst-ratings/analyst-color/16/07/8243147/shippers-surge-as-baltic-dry-index-notches-another-uptic alt=Shippers Surge As Baltic Dry Index Notches Another Uptick>Full story available on Benzinga.com
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