26-May-2016
Republic of Iran Shipping Lines (IRISL) orders worth close to $2.5bn at South Korean shipyards. Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo (DSME) top managers recently visited Iran in order to talk with Iranian leaders. Memoranda of Understanding (MOU) signed with Tehran officials for offshore vessels, mega-containerships and handysize bulkers. Republic of Iran Shipping Lines (IRISL) has made an agreement with Hyundai Mipo Dockyard (HMD) to build 10 handysize products tankers and 6 handysize bulkers and 3 pieces 14,500 TEU containerships at Korean Shipyards. Republic of Iran Shipping Lines (IRISL) sister company Iranian Offshore Oil Co ordering 5 jack-up rigs worth more than $200m each at Daewoo (DSME) Shipyard. Republic of Iran Shipping Lines (IRISL) is in talks with medium-size Korean yard SPP Shipbuilding to convert 10 handysize bulker new-buildings into an equal number of medium-range (MR) tankers.
25-May-2016
New York-listed, Michael Bodouroglou-led Paragon Shipping will not take a delivery of new building ultramax bulk carrier from Chinese Shipyard. Paragon Shipping received a notice of default from Chinese Yangzhou Dayang Shipbuilding for not taking delivery of the ship. Paragon Shipping will take delivery of 3 kamsarmax bulk carriers at the end of 2016 from Jiangsu Yangzijiang Shipbuilding. Paragon Shipping sold all of its fleet (6 dry bulk carriers) in order to satisfy banks in March 2016. Paragon Shipping plans to delist from the Nasdaq due to not meeting the Nasdaq’s minimum stockholder equity requirement of $2.5 million.
25-May-2016
New York-listed dry bulk shipowner Safe Bulkers reached an agreement with DNB Bank in order to ease loans and push back the DNB loan’s repayment schedule. A few months ago, Safe Bulkers pushed back payments of $146m loan. Safe Bulkers CEO Polys Hajioannou moved the final balloon payment from 2020 to 2022. The latest amendments strengthen Safe Bulkers balance sheet, reduces exposure to financial covenants during the worst bulk shipping times in history.
25-May-2016
Due to higher iron and steel prices pushed upward trend in capesize bulk carrier spot rates in the first quarter of 2016, dry bulk shipping should remain cautious about speculative housing boom in China and economic growth signals. It is obvious that China’s housing boom is more speculative than substantial. Mostly, the housing boom and housing price gains inexpensive high rise buildings in big cities. In order to lower the steel demand, China’s government would tighten the credits. Steel prices almost entirely government-driven instead of market-driven demand. Underperforming loans in China are still a major economic risk. Furthermore, the Chinese economy is not growing steadily with consumers’ demand. China’s heavy industries and shipbuilding is another major problem. China’s socialist government might withdraw support for inefficient domestic miners that could trigger Brazilian and Australian iron ore imports. China’s coal imports also affect the dry bulk shipping market. Coal imports are in long-term decline due to the greater use of natural gas. Predicting that coal will continue to maintain a negative trend and so on dry bulk shipping. Chinese government’s agricultural policy is unclear. China has been the biggest consumer of surplus grain produced in the US and Europe. China’s government wants to favor domestic grain production. In sum, all these factors in commodities markets affect freight rates. The dry bulk shipping market will soon find a proper equilibrium point for demand and supply.
25-May-2016
U-Ming Marine Transport, the Taiwan based dry bulk shipping company, announced a loss of $19.79 million in Q1 2016. Taiwanese U-Ming Marine Transport was in profit in Q1 2015. In February 2016, U-Ming Marine Transport ordered two (2) new building kamsarmax dry bulk carriers new-buildings at Japan shipyards for delivery in 2019 and 2020. Many shipowners still continue to order new buildings at the rock bottom prices in the dry bulk shipping market.
22-May-2016
Malaysian Bulk Carriers (Maybulk) has taken steps to market two more bulk carriers as the Malaysian owner continues adjusting its fleet during one of the harshest downturns the dry bulk shipping market has experienced. Malaysian Bulk Carriers (Maybulk) is reported to be negotiating the sale of the kamsarmax bulk carrier 87K DWT MV Alam Padu and the supramax bulk carrier 53K DWT MV Alam Muni, soon after the reported disposal of the kamsarmax bulk carrier 87K DWT MV Alam Pesona for about $6.8 million to Athens-based shipowner and operator Navitas Compania Maritima SA. That reported transaction once again brings Navitas Compania Maritima SA into focus as a Greek bulk carrier owner that has gradually assembled its fleet through selective secondhand acquisitions rather than rapid or highly visible expansion. Athens-based shipowner and operator Navitas Compania Maritima SA has earned a reputation as a low-profile yet active buyer in the bulk carrier market, with a fleet strategy that appears centred on carefully timed opportunities in the secondhand sector. Over recent years, Navitas Compania Maritima SA has repeatedly emerged in connection with bulk carrier acquisitions, particularly in the larger dry bulk segments, pointing to a measured approach to fleet growth and asset accumulation. The reported purchase of kamsarmax bulk carrier MV Alam Pesona fits neatly into that pattern, indicating that Navitas Compania Maritima SA remains prepared to expand when prices, timing and market conditions are favourable. For Navitas Compania Maritima SA, the addition of a kamsarmax bulk carrier from Malaysian Bulk Carriers (Maybulk) would also widen its dry bulk exposure and strengthen its standing as an Athens-based shipowner and operator pursuing steady but deliberate growth in the global bulk carrier market. At the same time, Malaysian Bulk Carriers (Maybulk) posted its first annual loss on record in March, reporting a deficit of around $282 million for the 2015 financial year. Malaysian Bulk Carriers (Maybulk) said 2016 was expected to be another difficult year for dry bulk shipping, adding that China’s seaborne coal imports were likely to fall further, while stronger demolition activity, fewer dry bulk deliveries and rising lay-ups were expected to ease tonnage overcapacity. Malaysian Bulk Carriers (Maybulk) currently controls a fleet of 24 ships, consisting of 21 bulk carriers and 3 tankers.
19-May-2016
British Virgin Islands-registered Ukraine-based ship operator Phaethon International Company Ltd. has secured the time charter of a panamax bulk carrier, owned by New York-listed shipowner and operator Diana Shipping, for a duration of up to eight months at a daily rate of $5,250, as per the Baltic Exchange data. 2006 built panamax bulk carrier 74K DWT MV Coronis will be delivered to the charterer in Donguan, located in southern China, sometime between May 25-30. 2006 built panamax bulk carrier 74K DWT MV Coronis can be redelivered anytime until February 18, 2017. The current daily rate represents a 24% reduction compared to what MV Coronis was earning during its previous employment with Sandgate Maritime. The charterer had initially booked the MV Coronis in July 2015 at a gross rate of $6,500 per day. However, the contract concluded earlier than anticipated when Sandgate Maritime redelivered the MV Coronis on March 19 of this year, rather than the scheduled date of April 3.
18-May-2016
Hong Kong-based shipowner and operator Chellaram Shipping (Hong Kong) Ltd. (Chellship) has consummated the acquisition of the ultramax bulk carrier 60K DWT MV Aby Paola, valuing it at a notable $19.5 million. Intriguingly, this marks their inaugural prominent bulker acquisition after a prolonged hiatus. Remarkably, this transaction seems advantageous for ABYO, given that VesselsValue.com appraises the vessel, merely a year in service, at a market value of $16.72 million. The divesting party, ABYO, represents a collaborative endeavor among prestigious entities: York Capital Management, Augustea, Bunge, and Oceanbulk. Their fleet boasts two bulkers: 2006 built kamsarmax bulk carrier 82K DWT MV Abyo Oprah and capesize bulk carrier 175K DWT MV Abyo Audrey. CEO Vishal Khurana-led shipowner and operator Chellaram Shipping’s prestigious fleet comprises approximately 10 medium-sized bulker carriers. Furthermore, their extensive portfolio includes offshore and dredging ships.
16-May-2016
Release of the Panama Papers database which contains the leaked corporate registration database of Panamanian law firm Mossack Fonseca might effect a few shipping companies to name a few: COSCO group, COSCO Shipping Bulk, China Shipping Group, Fred Olsen & Co and Evergreen Marine, former COSCO chairman Wei Jiafu, Israeli billionaire Idan Ofer, shipowner Fred Cheng. In shipping setting up single-purpose companies in such tax havens are common so the appearance in the Panama Papers is not a sign of wrongdoing. But, for maritime lawyers, Panama Papers is a new tool for hunting and seizing assets in disputes.
16-May-2016
CEO of Eagle Bulk Shipping (EGLE) is taking personal stakes in a new $60 million second-lien loan. CEO Gary Vogel and Chairman Paul Leand are committing to buy nearly 2 million shares. Top executives of Eagle Bulk Shipping seek to demonstrate that they are standing shoulder to shoulder with other investors in showing faith in Eagle Bulk Shipping. CEO Gary Vogel already holds 325,000 Eagle Bulk Shipping’s shares in the form of restricted stock Gary Vogel was awarded on his recruitment last year. After this, CEO Gary Vogel will receive 984,536 shares in the second-lien deal. CEO Gary Vogel and Chairman Paul Leand will hold about 0.3% of Eagle Bulk Shipping’s outstanding stock if the transaction goes through. Eagle Bulk Shipping’s shares 41% is held by Oaktree Capital Management and 18.3% is held by Golden Tree Asset Management.
16-May-2016
Greek Laskaridis family acquired 2010 built post-panamax bulk carrier 92K DWT M/V Zeus (ex M/V Chitra Prem) for $9.8 million from Mercator Lines Singapore. Laskaridis sister company Laskaridis Shipping Ltd bought the bulk carrier. Even though Laskaridis family prefers expanding with new-buildings, they are now attracted by rock bottom prices for used bulk carriers. Currently, Laskaridis family’s fleet consists of around 30 bulk carriers. In April 2016, Singapore-listed Mercator Lines declared not to continue operating the ships due to its liabilities. Mercator Lines appointed two liquidators after creditor Malayan Banking (Maybank) enforced its security over a ship at the end of 2015. The debt burden on Mercator Lines Singapore’s fleet is so severe that creditors forcing the disposal of around all ships.
16-May-2016
Japanese NYK Bulk (Nippon Yusen Kabushiki Kaisha) scrapped in an en-bloc deal to Chinese Scrapyard. Japanese NYK Bulk (Nippon Yusen Kabushiki Kaisha) disposed of 2001 built 229K DWT M/V Onga and 1996 built 151K DWT M/V Shin Ondo for $10.3 million in total. Japanese NYK Line (Nippon Yusen Kabushiki Kaisha) gets guaranteed green recycling from the Chinese Scrapyard.
16-May-2016
Hajioannou family bought 2012 Japanese built 74K DWT panamax bulk carrier MV Hermes Island for $13.8 million. In April, Hajioannou family bought sistership MV Vivace for $13.8 million. Both panamax bulk carriers were previously controlled by Japanese ship owners.
16-May-2016
Oaktree Capital Management sold 2006 Chinese built handymax bulk carrier 50K DWT MV Neer for $3.6 million.
16-May-2016
A maritime Law firm based in the USA, Vedder Price, move into Far East Singapore. Vedder Price New York partner Ji Woon Kim will lead the new setup and begin recruiting new staff in both maritime and aviation. Vedder Price has grown into the maritime sector as part of a geographical expansion from its home base of Chicago, USA. Vedder Price is active in transport, corporate, and employment law.
11-May-2016
Greek Laskaridis family-controlled shipowner and operator Lavinia Bulk Ltd. acquired 2010 built post-panamax bulk carrier 92K DWT MV Zeus (ex MV Chitra Prem from Mercator Lines. Athens-based shipowner and operator Lavinia Bulk Ltd. paid around $9.8 million for MV Zeus (ex MV Chitra Prem). MV Zeus (ex MV Chitra Prem) was the largest bulk carrier the fleet of Mercator Lines. Laskaridis Shipping Ltd.’s subsidiary Lavinia Bulk Ltd’s rare foray into the secondhand market for bulk carrier. Laskaridis Shipping Ltd operates chemical tankers, product tankers, and reefer ships. Lavinia Bulk Ltd is a privately held company. Lavinia Bulk Ltd’s bulk carriers are managed by Laskaridis Shipping Co. Ltd. Lavinia Bulk Ltd commercially manages a large and modern fleet of mid- to large-size dry bulk carriers. This is Lavinia Bulk Ltd’s first secondhand bulk carrier investment in years. Lavinia Bulk Ltd’s policy was to expand with newbuildings. However, Lavinia Bulk Ltd is now attracted by low values to enter the sale-and-purchase (S&P) market for used bulk carriers.
9-May-2016
Three pivotal reasons for the current turmoil in select shipping sectors, as articulated by Premuda’s president, Alcide Ezio Rosina, include: China’s burgeoning influence in shipbuilding, unchecked bank lending until 2008, and the influx of private equity liquidity in recent years. Alcide Ezio Rosina notes, “Excessive capital from financial investors flooded the shipping industry at a juncture when profitability and investment returns were dwindling.” He emphasizes that this abundance of capital undeniably contributed to the current oversupply of tonnage. Established in 1907, Premuda is an esteemed Italian entity on the cusp of finalizing an accord with Pillarstone Italy, involving stakeholders like KKR, Unicredit, and Intesa SanPaolo. This agreement, worth nearly €400m, pertains to bank loan exposures. Upon closure, Premuda anticipates rejuvenation through a capital influx. Reflecting on the future, Alcide Ezio Rosina ponders the viability of family-run shipping enterprises. He muses, “My tenure in this sector spans 62 years. I’ve weathered numerous recessions, yet the current dynamics differ substantially.” In terms of longevity, however, Aldo Grimaldi, the patriarch of Italian shipowners, surpasses Rosina. As the nonagenarian leader of Genoa’s Grimaldi Holding, Rosina marvels at the sophisticated technological innovations in ship design. He extols, “Today’s designs offer previews of the ship’s operational efficiency even prior to its construction.” Additionally, he is in awe of the march toward ship automation, underscoring advancements in electronics and computerization. Market specialization aids Gruppo Messina in maintaining its dominance in the Europe-Africa-Middle East trade corridor. However, the company faces unprecedented challenges such as fierce competition, financial constraints, and geopolitical instability. Stefano Messina, the group’s chairman, advocates for reimagined assets, governance, and marketing strategies. Yet, their specialized fleet ensures a competitive edge. On another front, Italy’s d’Amico Group amplifies its Asian focus, launching a fleet of supramax bulk carriers. At the group’s helm, Cesare d’Amico collaborates with Paolo, the erstwhile president of the Italian Shipowners Association. Their new initiative, Medi Supra Pool Management, is poised to serve bulk carriers ranging from 53K DWT to 64K DWT. With a vast global footprint, d’Amico offers invaluable services to stakeholders like banks and investors. In the dry bulk sector, Angelo D’Amato, CEO of Italy’s Perseveranza di Navigazione, challenges the prevailing pessimism. Emphasizing the cyclical nature of the industry, he remains optimistic about its recovery. Similarly, Nicola Coccia, chairman of Gestioni Armatoriali, asserts, “Dry bulk remains resilient. Market rebalancing is underway through scrapping and conversions.” Founded by the Brullo family in 1994, Augusta Due, a Rome-based company, operates in the liquid bulk segment. CEO Raffaele Brullo expresses prudence, informed by financial restructures. Another Italian player, LGR di Navigazione, pivots to medium-range product tankers, eyeing promising returns. In Piombino, Elbana di Navigazione contemplates fleet expansion, contingent on the renewed backing of Italian banks. Similarly, seasoned shipowner Michele Bottiglieri stresses the need for traditional banking support. In today’s evolving landscape, Mariella Bottiglieri of Giuseppe Bottiglieri Shipping Company perceives transformative industry shifts, especially with the entrance of private equity and hedge funds. She foresees potential collaboration, integrating traditional shipping with financial investors. Finally, Dalmare, after divesting from the dry bulk market, plans to concentrate on Mediterranean liquid bulk. Gaetano D’Alesio elucidates the shift to niche markets, emphasizing the challenges family-owned entities face against private equity-backed behemoths.
5-May-2016
Greek Navitas Compania Maritima bought post-panamax bulk carrier 2005 Japanese built 87K DWT M/V Alam Pesona from Malaysian Bulk Carriers for a firm $6.8 million. Greek Navitas Compania Maritima fleet consists of 4 bulkers. In 2013, Navitas Compania Maritima bought 2009 built 93K DWT M/V Barents Sea for $21 million from DryShips for $10 million. In 2014, Greek Navitas Compania Maritima bought 2 supramax bulk carriers from Turkish Geden Lines $25 million each.
5-May-2016
Troubled Indonesian shipowner and operator PT Meranti Bahari is losing control of handysize bulk carrier 27K DWT MV Kenanga which will be sold at public auction in Cape Town. MV Kenanga was arrested in January 2016 by STX Marine Services Co for outstanding ship management fees. Indonesian shipowner and operator PT Meranti Bahari operates 3 handysize and 3 panamax bulker carriers. Company’s many ships are under arrest while PT Meranti Bahari was seeking cash to settle debtor claims and crew wages. In December 2015, PT Meranti Bahari filed for bankruptcy protection to survive in Indonesia Jakarta Central Court in January 2016. PT Meranti Bahari was granted protection in Indonesia which is similar to a Chapter 11 filing in the US. PT Meranti Bahari’s other 1995 built panamax bulk carrier 75K DWT MV Kayu Ramin is under arrest in Dubai. PT Meranti Bahari’s 69K DWT MV Kayu Putih and 27K DWT MV Mahoni have been idle in China and waiting for enough money to undergo surveys and drydocking.
4-May-2016
Grieg Star Shipping logged a net profit of $1 million in 2015. Dry bulk shipping division is in loss and suffering from the poor bulker market but the tanker shipping division is in profit and significant sale-and-leaseback transactions that contributed positively to the results in 2015. Grieg Shipping’s open-hatch division delivered better-than-expected results. Grieg Shipping’s staff of 46 operates out of offices in Bergen, Oslo, and London.
4-May-2016
Seth Glickenhaus was a believer in the dry bulk shipping story that saw so many owners go public in New York between 2004 and 2007. Seth Glickenhaus was a link to the old days and old ways of Wall Street underpinned by experience that stretched back before the stock market crash of 1929. Seth Glickenhaus was a believer in the dry bulk sector and his dry bulk investments came in New York’s Eagle Bulk Shipping which he placed a $12 million order in 2006. The dry bulk shipping market is full of freshly-minted junior analysts who were new to shipping but Seth Glickenhaus was an experienced gentleman who was a macro guy who looked the world from a different perspective.
4-May-2016
Greek Phoenix Energy Navigation sold its two oldest baby cape size bulk carriers to Indian shipowners. Korean Daewoo 2003 built baby cape size bulk carriers 104K DWT MV Phoenix Alpha and MV Phoenix Beta sold for $20 million each. Greek Phoenix Energy Navigation bought both bulk carriers in 2004 for $53 million each as M/V Finesse and M/V Felicity. In January 2016, Greek Phoenix Energy Navigation bought cape size bulk carrier built 2005 176K DWT MV Maritime Power (ex M/V Nord Power) from Dampskibsselskabet NORDEN A/S for $12 million.
4-May-2016
New York-listed Star Bulk Carriers sold vintage handymax bulk carrier. Star Bulk Carriers sold 1998 Japanese built 45K DWT M/V Star Michele for $2.3 million. In 2014, Star Bulk Carriers paid $635 million to acquire bankrupt Excel Maritime Carriers 34 bulk carriers. Currently, Star Bulk Carriers’ oldest bulk carriers are from the 1990s M/V Star Despoina and M/V Star Vanessa. Oaktree Capital Management is holding 52.5% of the Star Bulk Carriers shares and the Pappas family is holding 5.8% of Star Bulk Carriers shares.
4-May-2016
Thalkat Shipping SA selling 1996 Japanese built 27K DWT M/V Karystos for further trading. Greek shipowner and operator Thalkat Shipping SA bought M/V Karystos from Danish shipowner and ship operator J Lauritzen in 2009 for $12 million.
In April 2016, Thalkat Shipping SA sold the 1994 Japanese built 26K DWT M/V Maraki for $2 million for further trading to Istanbul-based Turkish Aknur Shipping and Trading Ltd. In April 2015, Turkish Aknur Shipping and Trading Ltd also bought handy bulk carrier 28K DWT M/V Navision Alliance from Danish Navision Group for $3.5 million. After the sale of M/V Karystos, Greek Thalkat Shipping SA’s fleet will be left only one (1) 2002 built handymax bulk carrier 46K DWT M/V Sideraki.