In last trading session, the stock price of Diana Containerships Inc (NASDAQ:DCIX) jumped over 154% to close at $6.14. With this share price jump, the stock has managed to erode all its losses made in the past 52 weeks. Shipping stocks were already trading higher after the election in the U.S. before the news that Korea Line Corp. acquired Hanjin assets out of insolvency entirely unmoored the industry.
Most of the gainers were not tankers, instead they were dry bulk carriers. The list of rapid gainers includes Diana Containerships, Seanergy Maritime Holdings Corp.(NASDAQ:SHIP), Diana Shipping Inc.(NYSE:DSX), Navios Maritime Holdings Inc.(NYSE:NM) and many others. Shipping firms do not survive in a vacuum. They are impacted by the subject to the macro environment in which they function.
Diana Containerships reported that it has signed, through a separate wholly-owned firm, a Memorandum of Agreement to offer to an unlinked third party the 2006-made vessel “Angeles” (previously “YM Los Angeles”) for destruction, with delivery due to the purchaser by mid-November 2016, for a price of nearly $6.69 million before charges.
Upon closure of the aforementioned sale, the company’s fleet will comprise 12 container vessels, that is, 6 Panamax and 6 Post-Panamax. A table detailing the current fleet of the company can be found on the firm’s website.
Diana Containerships is an international company offering shipping transportation services via its ownership of containerships. The firm’s vessels are employed mainly on time charters with pioneering liner firms shipping containerized cargo along global shipping routes. It has 13 boxships the size of which from nearly 3,400 teu to 6,500 teu. In the ultra large liners days, which have considerable cost benefits depending on economies of scale and after the commencement of the new locks for the Panama Canal to accommodate maximum 14,000 teu, the small sizes are hardly in demand.