OK, it is another sign that WLD has excess shipping capacity...

OK, it is another sign that WLD has excess shipping capacity that they have to charter out the vessel, instead of shipping their own feed cattles. Or it may be the offpeak season for feeding cattle export industry now. They always think they charge good rate to charter out the vessels, but I am always worried that rate they charge is not enough to cover their vessel operating risk.


Cautious Optimist, can you help with one thing? According to the latest Cattle Industry Projections published on 26 July, the expected heads for cattle export in 2017 CY (925,000 heads ) is 30% less than 2015CY (1,332,000) and 16% less than 2016 CY (1,100,000 heads) . The CEO said they would ship cattle to China within 12 months in July given cattle availability. But I am wondering if there is no cattle to China now, how they would be able to find cattle to ship to China in 12 months. The supply in 2017 CY looks like to be even worse than 2016 CY.

According to the Projection, the industry would ship 1,200,000 heads in 2021 CY, which is still below 2014 CY and 2015 CY. Looks like we may need to wait for 5 years for the SP to go back to $1. Having said that, this industry is so strange that higher sale volume does not necessary bring higher profit.