Ton Mile Trader

"On The Rocks”

The ice can normally (each winter) be counted on to provide an effect on rates similar to port congestion.  With more vessels available than cargoes, the only ice discussed recently at a fixture negotiation relates to beverages.    

Fearnleys Weekly

Capesize  “ Market appears generally overtonnaged, and ballasters face a hard time.”

Panamax  “ With a negative amount of spot cargoes compared to number of spot vsls, and the ice in the Baltic didn´t improve the situation.” 

 Turning to the market today I spotted GNK (Genco) @ 18.75 surprising myself as I resisted.  Way  2 much bad karma for this week and next.  In the last four weeks GNK is down 26% and when the sector swings, we all know how well this stock performs.

Reader Comments provided by Brewer;

”NMM is tax advantaged in that a portion of the distribution is treated as a return of capital and the balance is qualified dividends taxed at a max 15%. Plus they do not issue a k-1. Anyone who has wrestled with a k-1 can attest that this is a considerable benefit for an MLP.

And a pont of clarification: I said that NMM is a simple proposition, not that NM was simple. NMM is simple. They own ships that are on long term charter and they pay out all their excess cash. This is what DSX was before Mr. Palios chose to build up a warchest of cash to go bottom fishing with. The Omnibus agreement is lengthy, but most MLPs have big, ugly documents that set the rules of engagement between GP and LP.

NM is indeed a more complicated entity, and very hard to forecast quarterly earnings for. However, it is not hard to see the longer term business sttrategy that Ms. Frangou pursues with NM as the centerpiece (and NMM, NNA and eventually NSALI as offshoots): buy dollars for 50 cents, use a sane amount of leverage to juice returns, and build net worth on a massive scale over the long term without too much worry about how an individual quarter turns out. What is not to like about that?”

"Very much appreciate your blog and enjoy reading it."

Thanks for your informative and well articulated reply.  The exchange of information and opinions that may be of benefit to investors is what this is all about.

Good Fortunes