While the shipping ETF may move with the Baltic Tanker Dry Index (BCIY), SEA does not specifically transport dry bulk commodites. SEA tracks the Dow Jones Global Index, a collection of dividend-paying global shipping firms. The ETF includes a 37.0% tilt toward the energy-related industries.
Instead, SEA investors should follow the Baltic Tanker Dirty Index (BDIY). The index aggregates rates from major trade routes every day and is a good indicator of overall shipping rates hired to move crude oil. [Shipping ETF Trouncing Baltic Dry Index]
“Liquefied Petroleum Gas (LPG) Timecharter Rates Move Lower Wk/Wk. Very Large Gas Carrier, Large Gas Carrier, and Handysize time charter rates all moved lower last week, currently sitting at $55,000/day (down 1.2% wk/wk), $60,000/day (down 1.9% wk/wk), and $30,000/day (down 0.5% wk/wk) respectively, while medium gas carrier and small gas carrier time charter rates were flat at $38,500/day and $7,000/day, respectively. We believe rising U.S. LPG export volumes and above trend demand from the Asia Pacific will continue to support a healthy rate environment,” adds Wells Fargo.
Guggenheim Global Shipping ETF
