The Baltic Exchange Dry Index  extended gains to a fifth straight session, rising 0.1% to 5,650 on Thursday, its  highest since September of 2008, amid sustained demand for capesize vessels. The capesize index, which tracks iron ore and coal cargos of 150,000-tonnes, increased 0.1% to 10,485, a  more than 13-year high, supported by  robust demand and ongoing pandemic-related constraints, in particular congestion in China. Meanwhile, the panamax index which tracks cargoes of about 60,000 to 70,000 tonnes of coal and grains, fell 0.5% to 3,884, its lowest in three weeks. Among smaller vessels, the supramax index rose 16 points points to 3,404, its highest in over one month. .    source:    Baltic Exchange

Strong demand for capesizes powers Baltic index to 13-year high

The Baltic Exchange Dry Index extended gains to a second straight session, rising 1.3% to 5,267 on Monday, its highest level since September of 2008, amid strength in capesize vessel segment. The capesize index, which tracks iron ore and coal cargos of 150,000-tonnes, advanced 2.5% to 9,289, also scaling a 13-year peak, amid ongoing pandemic-related constraints, in particular congestion in China, along with increased coal imports and high iron ore exports. Meanwhile, the panamax index which tracks cargoes of about 60,000 to 70,000 tonnes of coal and grains, fell 0.8% to 3,961, its lowest in almost two weeks. Among smaller vessels, the supramax index dropped 2 points to 3,381

Baltic index rises as smaller vessels gain

UNI-ASIA: Seeks Resilient Returns in Alternative Investments

Uni-Asia Group (UAG SP): Strong 1H2021 beat, even better year ahead

• RE-ITERATE BUY Entry  1.05  Target 1.56  Stop Loss 0.92
• UAG is an alternative investment company which  owns and manages bulk carriers, invests in Hong Kong commercial offices and develops residential properties in Japan. The group  derives around 65% of its revenues from charter income generated by its fleet of bulk carriers. The remainder of revenue is from its property projects in HK and Japan. 
• UAG reported a stellar 1H2021.    UAG& rsquo s bottom line reversed from a loss of US$3.9mn in 1H2020 to a US$7.0mn profit in 1H2021, driven mainly by its shipping segment. Charter income rose 46% YoY to US$20mn as average daily charter rose to about US$10,900 in 1H2021 compared to around US$7,000 in 1H2020. As a result, its shipping business reported a profit of US$9mn in 1H2021, vs a US$11mn loss in 1H2020. UAG& rsquo s balance sheet continued to strengthen, with total debt declining to US$95mn as at the end of 1H2021. Given the stronger-than-expected results and positive outlook in 2H2021 and 2022, shareholders will be rewarded with a 2.0 Sing cents interim dividend.
• UAG has right assets at the right time.  The broad-based increase in commodity demand and the tight supply of vessels have pushed Baltic Freight rates to their highest in more than 10 years. The market for handysize, which UAG specialises in, is even more favourable as rates rise to their highest since 2008. Current charter rates are above US$25,000 per day. We expect charter rates to remain resilient at these levels, or even increase, amid historically low order book, rising scrap rates and further cuts in operating speeds. Six of UAG& rsquo s wholly owned dry bulks will renew in 2H2021, three will renew in 1H2022 and one in 2H2022. 
• Maintain Outperform and raise our TP to S$1.56.    Valuations are attractive amid the stronger-than-expected bulk carrier upcycle. Our TP implies a 0.7x FY2021F P/B, which is still a conservative 30% discount to international peers who are trading above 1.0x P/B.

Baltic Dry Index Posts Monthly Gain but Slips from 11-year High

Uni-Asia back in the black with US$7 mil earnings for 1HFY2021