They also have invested heavily in a number of deep sea exploration rigs / submarines. These two different businesses that Dryships are involved in, have allowed them to be more diversified than their competitors. This means that when the economy is expanding, the company will benefit from being involved in a number of different businesses. Then during times of economic contraction, these businesses help to protect the company, against the volatility that the industry is known for. ("Dryships," 2010) How competitive would it be to start a company in this industry today?

The industry is very competitive, this because the spot rate is always subject to change. The spot rate is: the amount that the company and competitors are charging for transporting goods around the world. It is subject to increases or decreases in demand from businesses as: energy prices, weather conditions and the economic cycle can affect the rate. This means, that a new company starting out in the industry would face fierce...

("Daily Market, 2010)
Clearly, Dryships is one of the strongest companies in the shipping industry. This is because the company is diversified between several different areas and the items that they are transporting. Together, these two elements allow the company to withstand the volatility that can occur in the daily spot rate. This is the biggest factor affecting all competitors within the industry. It is through examining Dryships in this light; that will provide the greatest understanding as to what factors are affecting the dry bulk carriers.

Bibliography

Daily Market. (2010, March 24). Retrieved March 25, 2101 from Dryships website:

http://www.dryships.com/pages/report.asp

Dryships. (2010). Retrieved March 25, 2010 from Dryships website: http://finance.yahoo.com/q/co?s=DRYS

Dryships. (2010). Retrieved March 25, 2010 from Dryships website: http://finance.yahoo.com/q/pr?s=DRYS