Gaining steam

Investing Insight

 On the Bombay Stock Exchange (BSE), the stock price of Chowgule Steamship jumped from Rs 9.71 on Septemeb1 to close today at Rs 17.09.

 In the same period share price of Essar Shipping moved up from Rs 20.80 to Rs 21 and Garware Shipping gained from Rs 24.35 to Rs 25.

 G E Shipping increased from Rs 77.40 to Rs 141.90, Mercator Lines appreciated from Rs 128.50 to Rs 204.95, Varun Shipping gained from Rs 16.70 to Rs 24.25, South E Asia strengthened from Rs 38 to Rs 50.20 and Shipping Corporation of India (SCI) from Rs 105.35 to Rs 163.70.

 Rates of dry bulk carriers have more than doubled from about $32,000 a day in mid-September 2003 to about $65,500 in late October 2003. The Baltic Dry Index, an index of dry bulk rates, touched a three-year high on November 3.

 Rates of very large crude carriers rose from around $33,200 a day in October 2002 to around $48,550 in September 2003.

 Suezmax tanker rates climbed from $21,000 a day in October 2002 to about $24,000 in September 2003.

 It is expected that the rates could go up further. The demand for crude tankers is expected to rise in winter. The rise will depend on the severity of the winter.

 However, the order book for tankers, which is at record levels, may check the rise in rates. Shipping lines will be increasing their fleets in the next few months.

 However, dry bulk rates could climb in the next few months, thanks to the global economic recovery, China