Overview

Drivers
Financial Analysis
Industry Performance
Introduction
Market Size
Business Model
Key Players
Market Share
Competition & Threat
Industry Growth
Customers
Suppliers
Cyclicality
Seasonality
M&A & other Developments
Dry Bulk Shipping Industry
Introduction
Dry Bulk Shippers are vessel operators that deal primarily in shipping dry commodities across the
world. The primary cargo of these operators includes iron ore, coal, and grain, which are shipped on
vessels of various sizes ranging from Handysize to Capesize, capable of transporting 10,000-400,000
deadweight tons (DWT).
Market Size
Overview
The Dry-Bulk Shipping sub-industry falls under both the Industrials sector and the Marine sub-sector.
Mkt. Cap ($) Revenue Change (YoY)
Sector Industrials 7.69 tr 1.44%
-Industry Transportations 1.67 tr 2.97%
--Sub-Sector Marine 181.5 bn -1.16%
---Sub-Industry Dry Bulk (US Listed) 5.82 bn

Market Share
Competition and Threat
Players in the industry not only compete with one another, but also with outside players. The
companies compete with each other in all four modes of transportation: air, land, rail, and sea.
Dry-bulkers, to a great extent, are immune to cargo movements on air, land, and rail since major
commodities shipped intercontinentally have few options, among which marine transportation
provides the best cost-benefit balance.
Barriers to entry in the industry are rather low; an operator can break in to the industry with a single
vessel.
Industry Growth
Gl obal Cumul ati ve Dry Bul k 2011 2012 % Change
Total Revenues ($m) 32,705.3 23,705.8 -37.9
Gl obal Cumul ati ve Dry Bul k 2012 2013 % Change
DWT (mi l l i ons) 584 623 7
No. of Vessel s i n Servi ce 8,428 8,823 5
No. of Vessel s under
Constructi on
462 341 -26
Key Players
The marine transportation business includes both public and private entities. Large and diversified
operators are primarily based out of China, Japan, or Greece. These operators transport almost
everything ranging from dry bulk to liquid/dirty cargo such as crude.
The following are the most prominent names within the dry bulk segment for US-listed companies:
DryShips
DryShi ps Inc. (DRYS) is the largest US-listed vessel operator. The Greece-based company primarily
focuses on dry-bulk transportation. DryShips currently operates a fleet which includes 36 dry-bulk
vessels, which in total have a combined volume of a little over 3.5 million DWT.
The company also operates drilling rigs, submersible vessels, and tankers through its various
subsidiaries.
Navios
Business Model
Companies operating in the dry-bulk shippers sub-industry either own or lease a fleet of vessels that
are loaded with cargo to be delivered across the globe. Major commodity exporters include Australia,
Brazil, and the US for coal, iron ore, and grain respectively. On the other hand, major importers
typically tend to be the emerging markets, specifically China.
Navios Maritime Holdings Inc. (NM) is a holding company with subsidiaries all around the globe. The
company was originally formed by US Steel to transport iron ore to its mills in the US and Europe.
Now, the Piraeus, Greece-based company operates 49 vessels to ship exclusively dry-bulk
commodities. The company has total capacity of 5.1 million DWT.
Suppliers
Suppliers for the industry include some of the largest shipbuilders in the world.
Top 10 shipbuilders in the world with respect to gross tonnage are all based out of Asia with the largest 3
companies being located in South Korea. These include:
Hyundai Heavy Industries
Daewoo Shipbuilding
Samsung Heavy Industry
Cyclicality
The industry cyclical in nature where growth comes from transportation of goods and commodities
across borders. The industry is dependent on trade between countries and overall improving
conditions around the world.