The Baltic Dry Index is a measure for what it costs to transport by sea. When it’s down, shipping stocks are down. The index peaked in May 2008 at an all-time high of 11,793. From May to December 2008, it dropped more than -90% to 663, a low not seen in more than two decades. Today, it’s in the middle of a rebound.

Having already tripled off its low, there’s still plenty of room for the Baltic Dry to make gains. Its average price over the past ten years is 3225, +57% higher than it stands today. And in the very recent past, it’s been over 11,00

0, more than five times today’s number.

Despite being able to charge

much more for their services, shipper’s stocks are still near their December prices. But don’t think these stocks are su

nk. They’ll be back.

This is because the the Baltic Dry indicates what shippers are actually charging, which directly affects their bottom line. As the Baltic Dry Index raises to its historical level, shipping stocks will shortly follow suit.

Although there’s a fair amount of slippage due to the Baltic Dry being a leading indicator and the particular situation of individual stocks, this index and shippers move together.

While the stock prices of these companies are near their historic lows and their yields are near their historic highs, several shippers are floundering and have even cut or suspended their dividends.

But there’s one shipper that’s a real standout right now. It’s trades at its book value, has a 21.1% yield, and has a potential of a +117% capital gain — if it were only to return to its average price over the past several years.

Carla Pasternak, editor of High-Yield Investing, recently found this shipper, and it’s showing no sign of letting up. Beyond having paid regular dividends like clockwork for 18 quarters, her “Stock of the Month” actually raised it in 10 of them. To find out more about this company, click here.