Ton Mile Trader

Capital Link Indices
Maritime Index   1551  -16  -1.01%
Tanker Index      1967  -29  -1.45%
Dry Bulk Index    901   -25  -2.70%

- Urs Dur maintains a HOLD on TK. “Despite our current estimates that TK will be profitable and liquid over what looks to be a very difficult 2009...we believe that a week summer tanker spot market and a broad variance in consensus opinion will keep TK shares range bound for the near term.”

Anders Rosenlund on asset values: “Despite the short term spike in asset prices, we still see the risk of ship yards lowering newbuilding prices as this would eventually impact asset values negatively. There is significant overcapacity among yards while order intake is virtually non-existent. Simultaneously, input costs such as steel, energy and subcontractor costs are down from peak, enabling yards to lower prices further to attract new orders. Furthermore, Governments (e.g. South Korea and China) have shown willingness to support the shipbuilders to ensure shipbuilding activity continues, as this is of economic importance. Although there is some positive data regarding demand for vessels, shipping remains cyclical by nature and we’re not yet convinced the trough is behind us.”