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Hi. I am a shipping company director, transport academic, author, family man and all round nice guy. I have worked as shipbroker, shipowner, freight trader and bulk charterer, in senior positions, with some of the largest and most disrespected (joke) companies in the world. Ask my advice on all things shipping and you will receive my blunt and always honest answer. Hang around to learn more about chartering and ship broker salaries, chartering and ship broker jobs, chartering and shipbroker recruitment agencies, cheap freight, maritime education, chartering and ship broker qualifications, become a ship broker, tips on how to be a successful bulk shipping executive, philosophy, Zen and the art of shipbroking, and much more. Yours The Virtual Shipbroker (recently proclaimed the guru of shipbroking) Copyright © 2009-17 by Virtualshipbroker

Wednesday, August 31, 2011

Great question from a reader - who has an answer?

qte
 
Hi VS,
Read your blog on the regular, and have a question I've been wanting your opinion on.
Why are smaller ships (e.g. Handysize) more resistant to both upside and downside risk than their larger cousins?
A simple viewing of charter rates of dry bulk vessels shows capesize are extremely variable where as the smaller you get the steadier the graph.
Would love your opinion.
Thanks in advance.
Felix
 
unqte
 
Ok - Ill leave this one open to readers. Anyone willing to agree and offer an opinion why this is the case?
 
Cheers
The Virtual Shipbroker
 
 

4 comments:

  1. Hi VS,

    I believe it's due to cargo supply. Since there are more player who can provide small cargo (in terms of quantity). Therefore balance of supply and demand between ships and cargo are much more steady

    ReplyDelete
  2. hello,

    my 2 cents opinion

    1. because handies can do businesses restricted - draft -size-crane ecc- or in ports that tht pmax and cape cannot perform.

    2. handy new building orders have been significatly less than bigger sizes

    ReplyDelete
  3. here goes:
    because handies are generally owned by smaller players who have no interest or restricted by capital/value (less exposure on stock markets), thus they don't have the punters longing and shorting them as the bigger cousins with big owners who have deeper pockets and a shrewd gambalistic department to rock the rates on a whisper.

    ReplyDelete
  4. The Virtual ShipbrokerSeptember 1, 2011 at 5:57 PM

    Thanks for answers crew. I have posted a reply here http://virtualshipbroker.blogspot.com/2011/09/volatility-handies-vs-capes.html

    ReplyDelete