30-April-2019
Greek shipowner and operator M/Maritime has joined C Transport Maritime’s (CTM) supramax pool as the latest owner participant, adding another recognised Greek dry bulk player to the Monaco-based commercial platform. M/Maritime placed the 2017-built 60K DWT supramax bulk carrier MV Areti GR into C Transport Maritime’s (CTM) supramax pool through the RSA (Revenue Sharing Agreement), giving Athens-based M/Maritime access to a broader commercial system designed to improve employment, earnings allocation, cargo coverage, and ship positioning in the supramax bulk carrier market. Monaco-based C Transport Maritime’s (CTM) expressed strong satisfaction at the arrival of Greek entrepreneur John Mytilineos-backed M/Maritime in the supramax RSA (Revenue Sharing Agreement), which C Transport Maritime’s (CTM) presents as one of the most adaptable and prominent supramax bulk carrier pool arrangements in the market. For M/Maritime, the move creates another commercial outlet for one of its geared bulk carriers and supports the continuing progress of M/Maritime as a growing Athens-based dry bulk shipowner and operator. Athens-based M/Maritime became the third new entrant to enter the C Transport Maritime’s (CTM) supramax pool during the same month, after d’Amico Group and Eastern Pacific Shipping joined in quick sequence. The participation of M/Maritime in the RSA (Revenue Sharing Agreement) shows that M/Maritime is not only growing through ship purchases and newbuilding exposure, but also using commercial pooling arrangements to widen market access and improve earnings flexibility. For a dry bulk shipowner and operator such as M/Maritime, placing MV Areti GR into a supramax pool can reduce dependence on a single voyage fixture, expand access to cargo opportunities, and allow M/Maritime to benefit from the commercial strength of a larger grouped fleet. This can be particularly useful in the supramax and ultramax bulk carrier markets, where employment can be shaped by regional cargo flows, port congestion, grain seasons, coal movements, steel trades, fertilizer shipments, raw materials demand, and changing tonnage availability. Founded in 2016 and supported by Greek entrepreneur John Mytilineos, M/Maritime has developed rapidly as an Athens-based dry bulk shipowner and operator with growing exposure across geared and larger dry bulk segments. M/Maritime has already acquired three ultramax bulk carriers, together with smaller bulk carriers and newbuildings on order, showing a strategy based on fleet expansion, modern tonnage, and exposure to flexible dry bulk ship classes. The focus of M/Maritime on geared bulk carriers is commercially important because geared ships can trade into ports where shore-based cargo-handling infrastructure may be limited. This gives M/Maritime access to a wider cargo base and allows M/Maritime to serve trades involving grains, fertilizers, steel products, forest products, minerals, cement, petcoke, raw materials, project cargoes, and other dry bulk commodities. M/Maritime has built its profile around dry bulk shipping and has shown a clear preference for high-quality tonnage, especially ships constructed at respected Japanese shipyards. This fleet approach supports the reputation of M/Maritime for technical reliability, efficient performance, strong asset quality, and charterer appeal. In dry bulk shipping, the earning strength of a ship depends not only on market freight levels but also on fuel consumption, cargo-handling ability, maintenance condition, port suitability, inspection performance, and operational dependability. By combining owned tonnage, chartered-in ships, newbuilding commitments, and pool participation, M/Maritime is building a flexible platform that can react to changing market conditions without depending on a single employment model. The placement of MV Areti GR into C Transport Maritime’s (CTM) supramax RSA (Revenue Sharing Agreement) fits the broader commercial logic of M/Maritime. A 2017-built 60K DWT supramax bulk carrier such as MV Areti GR is well suited to a pool structure because supramax bulk carriers are regularly employed across many commodities and regions. Supramax bulk carriers offer a useful balance between cargo capacity and port flexibility, while onboard cargo gear gives these ships the ability to operate at ports with limited loading or discharge equipment. For M/Maritime, entering MV Areti GR into the C Transport Maritime’s (CTM) controlled RSA (Revenue Sharing Agreement) can help maximise utilisation, expand cargo reach, and smooth earnings through market cycles by participating in a wider revenue-sharing structure. The decision by M/Maritime also reflects the growing role of commercial partnerships in dry bulk shipping. A shipowner and operator may own or control capable ships, but the value of those ships depends heavily on how effectively they are commercially deployed. Pool structures such as the C Transport Maritime’s (CTM) supramax RSA (Revenue Sharing Agreement) can provide access to established charterer relationships, market intelligence, cargo programmes, voyage optimisation, and fleet scheduling. For M/Maritime, joining the pool with MV Areti GR allows M/Maritime to use the commercial reach of C Transport Maritime’s (CTM) while retaining ownership and strategic control over its ship. This can be appealing for a fast-growing owner that wants wider market presence without building a large standalone commercial desk for every regional trade. The development of M/Maritime has been closely connected with John Mytilineos, whose backing has helped M/Maritime move from a newly formed Greek dry bulk platform into a more visible shipowner and operator. Greek shipping has a long tradition of disciplined asset timing, dry bulk investment, secondhand acquisitions, newbuilding commitments, and flexible commercial deployment. M/Maritime reflects that tradition by using different methods to strengthen its fleet and earnings base. The addition of MV Areti GR to the C Transport Maritime’s (CTM) supramax pool shows that M/Maritime is prepared to use established commercial platforms when those platforms support employment efficiency and market access. For M/Maritime, the supramax and ultramax bulk carrier segments are especially attractive because these ship types offer broad employment flexibility. These ships are large enough to carry meaningful cargo parcels but flexible enough to call at many ports that are unsuitable for larger bulk carriers. This makes supramax and ultramax bulk carriers useful across both regional trades and longer-haul routes. As commodity movements become more complex due to sanctions, geopolitical disruption, canal restrictions, port inefficiencies, weather disruption, and changing demand patterns, flexible geared tonnage can become increasingly valuable. The growing exposure of M/Maritime to these ship types gives M/Maritime an adaptable position in dry bulk shipping. The entry of M/Maritime into the C Transport Maritime’s (CTM) supramax RSA (Revenue Sharing Agreement) also places M/Maritime alongside other well-known shipowners and operators within the same commercial framework. Monaco-based C Transport Maritime’s (CTM) recently welcomed the return of Idan Ofer’s Eastern Pacific Shipping to the RSA (Revenue Sharing Agreement), with Eastern Pacific Shipping adding its full supramax fleet: the 2010-built 53K DWT supramax bulk carrier MV Bridgegate, the 2017-built 63K DWT supramax bulk carrier MV Daimongate, and the 2019-built 63K DWT supramax bulk carrier MV Divinegate. C Transport Maritime’s (CTM) said the return of Idan Ofer’s Eastern Pacific Shipping highlighted the main strengths of the RSA (Revenue Sharing Agreement), including flexibility, no minimum duration, a three-month exit notice, no withdrawal fees, and no daily administration fees. C Transport Maritime’s (CTM) charges shipowners a 1.25% commission, and the structure of the RSA (Revenue Sharing Agreement) appears designed to attract owners that want commercial scale without high administrative costs or long lock-in periods. For M/Maritime, this flexibility matters because M/Maritime can benefit from pool participation while keeping room to adjust commercial strategy as market conditions change. In dry bulk shipping, owners often need to react quickly to movements in freight rates, regional tonnage supply, fuel costs, cargo demand, and ship values. A pool with limited exit restrictions and no daily administration fees can therefore be attractive for a growing owner such as M/Maritime. The expansion of the C Transport Maritime’s (CTM) controlled supramax RSA (Revenue Sharing Agreement) gives further context to the decision by M/Maritime to join. In 2013, the C Transport Maritime’s (CTM) controlled supramax pool had five members and six bulk carriers. The supramax pool has since grown to 18 members and 66 bulk carriers, showing that the platform has built greater scale and wider acceptance among shipowners. A larger pool can offer broader cargo access, stronger market presence, and more efficient positioning across different regions. By contributing MV Areti GR, M/Maritime becomes part of a larger commercial structure that has expanded considerably over time. Earlier in March, Italian shipowner and operator d’Amico Dry joined C Transport Maritime’s (CTM) Supramax Revenue Sharing Agreement (RSA) with the 2006-built 53K DWT supramax bulk carrier MV Medi Bangkok and the 2009-built 56K DWT supramax bulk carrier MV Medi Paestum. In December, Athens-based Greek shipowner and operator Chandris (Hellas) also added a supramax bulk carrier to the C Transport Maritime’s (CTM) controlled supramax RSA (Revenue Sharing Agreement). The recent additions of d’Amico Dry, Eastern Pacific Shipping, Chandris (Hellas), and M/Maritime show that the RSA (Revenue Sharing Agreement) continues to attract shipowners from different regions and shipping backgrounds, further increasing the commercial depth of the pool. For M/Maritime, joining this pool is consistent with a wider strategy of measured growth and commercial diversification within dry bulk shipping. M/Maritime has expanded through acquisitions, built a fleet around quality tonnage, maintained a focus on bulk carrier segments with practical employment flexibility, and used commercial structures that can improve access to earnings. The placement of MV Areti GR into the supramax pool improves the ability of M/Maritime to participate in a wider cargo network while preserving the disciplined fleet-building approach associated with M/Maritime. It also strengthens the reputation of M/Maritime as a young but increasingly active Greek shipowner and operator willing to combine asset ownership with modern commercial management. Looking ahead, the participation of M/Maritime in C Transport Maritime’s (CTM) supramax RSA (Revenue Sharing Agreement) may help M/Maritime deepen its role in the geared dry bulk market. The pool gives MV Areti GR access to a broader commercial platform, while M/Maritime gains more exposure to supramax employment opportunities without relying solely on independent fixtures. As M/Maritime continues to grow under the backing of John Mytilineos, the ability to combine modern ships, flexible employment structures, respected commercial partners, and disciplined fleet development could become central to the long-term strategy of M/Maritime. The placement of MV Areti GR into the C Transport Maritime’s (CTM) supramax pool is therefore more than a routine commercial step. It is another stage in the development of M/Maritime as an Athens-based Greek dry bulk shipowner and operator focused on quality tonnage, market adaptability, and stronger participation in international dry bulk trades.
29-April-2019
Geneva-based Chinese grain trader COFCO International, chartering arm of Cofco Corporation, precautions of the soft dry market ahead. COFCO International, one of the world’s biggest bulk carrier charterers, has announced what the company defines as its eco charter plan while anticipating soft freight circumstances ahead. COFCO International Ship Chartering has been enthusiastic for fuel-efficient ships in its fleet of chartered-in ships. COFCO International Ship Chartering has eco-ships in the fleet for economical and environmental motivations. Usually, COFCO International Ship Chartering charters in fuel-efficient eco-friendly maximum three-year-old ships. COFCO International Ship Chartering charters in from Japanese or Chinese shipowners for five years or more. Usually, long-term ship charters are linked to new building ships. COFCO International Ship Chartering charters in around 2,000 ships to ship 50 million tonnes of cargo per year. COFCO International has been spending premiums for the newbuilding ship charters compared with ships without scrubbers.
29-April-2019
Japanese maritime giant Doun Kisen KK (aka Doun Kisen Co. Ltd) has commissioned Mitsui Engineering & Shipbuilding to construct two (2) ultramax bulk carriers. Two (2) ultramax bulk carriers, with a carrying capacity of 66K DWT (deadweight tons), are scheduled for delivery late next year and at the beginning of 2021. Japanese shipowner Doun Kisen KK’s (aka Doun Kisen Co. Ltd) present fleet comprises an impressive collection of 72 bulk carriers, 15 container ships, 11 tankers, two LPG carriers, and three reefer ships. Furthermore, Japanese shipowner Doun Kisen KK (aka Doun Kisen Co. Ltd) has already contracted for a total of 10 new buildings.
29-April-2019
Scorpio Bulkers (SALT), a Monaco-based, New York-listed dry bulk shipowner and operator, saw its stock price surge following the release of its first-quarter earnings report, which surpassed analysts’ expectations despite lower revenue. The company reported a $3.5 million net loss for the quarter, an improvement from the $5.8 million loss recorded during the same period last year. On an adjusted basis, Scorpio Bulkers (SALT) achieved a $4 million profit for the three months. JP Morgan analyst Noah Parquette noted that Scorpio Bulkers’ (SALT) operating loss per share of $0.17 was two cents better than both the bank’s and consensus projections. The core operating profit of $15 million also exceeded JP Morgan’s forecast of $13 million, thanks to higher-than-anticipated revenue. Following the earnings release, Scorpio Bulkers’ shares experienced an 11% increase to $5.26 in early-morning trading. Analysts highlighted the company’s conservative approach, focusing solely on capital expenditures for emission scrubbers, in anticipation of commentary reflecting a cautious strategy amidst challenging market conditions. Stifel analyst Ben Nolan commended Scorpio Bulkers (SALT) for its positioning to navigate the current dry bulk market challenges, citing the potential upside from its scrubber-fitted fleet in light of IMO 2020 regulations. A significant factor in this year’s first quarter was a $15 million non-cash gain related to the company’s equity investment in Scorpio Tankers made in October 2018, which gave it a 10.9% shareholding. However, this gain was partially offset by a $7.5 million write-down on two vessels designated for sale, the MV SBI Electra and the MV SBI Flamenco. Vessel revenue for the quarter amounted to $50.4 million, a decline from $54.3 million in the previous year, attributed to decreased activity in both the Atlantic and Pacific regions. The downturn was influenced by a combination of lower industrial activity, a shift towards higher natural gas consumption due to mild temperatures, and ongoing Chinese coal import restrictions from Australia. Furthermore, the ultramax and kamsarmax bulk carriers’ revenue was negatively impacted by the “extreme disruptions” in iron ore export capacity from Brazil and Australia, dampening market sentiment.
28-April-2019
Listed on the prestigious Oslo Stock Exchange, the renowned Norwegian maritime enterprise, Belships, is advancing vigorously in its fleet augmentation endeavors. It recently formalized its commitment to procure its third ship in a mere span of a month. The illustrious Belships has entered into an agreement to acquire the 2007-forged supramax bulk carrier, MV Sephora, boasting 55,866 DWT, from the eminent Elias Kulukundis's Prospero Marine, for a sum of $12 million. Half of this substantial amount stems from a $140 million loan, ratified in the early days of March, while the residual will be settled via the issuance of 7.4 million fresh Belships shares, priced at $0.81 each. The MV Sephora, a creation of Japan's distinguished Kawasaki Heavy Industries, stands as the second supramax acquisition by Belships during this period of intense procurement. Their first acquisition in this spree was the Tsuneish Cebu 2008 crafted supramax bulk carrier, MV Viola, with 58,0000 DWT, secured from their national counterparts, the Wenaas Group, for $13 million. Furthermore, Belships expended $24.2 million to obtain the 63,000 DWT MV Sofie Victory (forged in 2016), a previous possession of the esteemed Espen Galtung Dosvig's EGD Shipholding. In a notable organizational change, the maritime magnate Frode Teigen assumed the role of Belships' chief executive in mid-March, shortly after amalgamating the firm with his esteemed Lighthouse Navigation. These recent procurements and forthcoming share issuances are strategic moves to resonate with the Group's shareholder objectives, aiming to broaden Belships' shareholder spectrum and enhance share liquidity. Post this recent transaction, Belships will proudly command a fleet comprising nine supramax and 10 ultramax bulk carriers, inclusive of a 63,000 DWT ultramax bulk vessel anticipated for delivery in the first half of 2020.
28-April-2019
Chinese shipping giant Cosco Shipping Bulk has added 3 more newcastlemax new-buildings 210K DWT at CSIC Qingdao Beihai Shipbuilding Heavy Industry. Cosco Shipping Bulk will add a second tranche of bulk carriers to a major project. Final Cosco Shipping Bulk newcastlemax haul could extend to 30 bulk carriers to meet a bauxite contract with Chalco. Chalco is China’s largest producer of both alumina and aluminum. New York and Hong Kong-listed Chalco have entered into an agreement with the Guinea government to develop a bauxite project in Boffa, Guinea. At the beginning of April 2019, Cosco Shipping Bulk ordered up to 10 bulk carriers at Cosco HI Yangzhou. Tianjin Xingang Shipbuilding Heavy Industry is also set to win deals for 3 bulk carriers from Cosco Shipping Bulk. Sino-Japanese shipyard Dalian Cosco KHI Ship Engineering is expected to win 2 bulk carriers.
28-April-2019
Taiwan’s state-run Taiwan Power Company (TPC) is deep in negotiations with several major maritime partners to form a new dry bulk shipping joint venture designed to enhance its direct involvement in shipowning and ensure long-term stability in meeting its coal transportation requirements. The discussions include two leading Taiwanese shipowners and operators, U-Ming Marine and Kuang Ming Shipping Corp., along with Japanese shipping major Kawasaki Kisen Kaisha (K Line). Taiwan-based shipowner and operator U-Ming Marine has confirmed that a consortium of partners, including itself, is holding advanced talks with Taiwan Power Company (TPC) to establish the new venture, which will focus on the secure and efficient transportation of coal imports vital for Taiwan’s energy needs. The final structure of the joint venture, including its ownership distribution and participating entities, is expected to be finalized by the third quarter of this year. The move marks a continuation of Taiwan Power Company (TPC)’s broader strategy to expand its shipping capabilities and reduce reliance on external chartered tonnage for its substantial annual coal import requirements, which exceed 30 million tons. This will not be the first collaboration between Taiwan-based shipowner and operator U-Ming Marine and a major Taiwanese energy entity. In 2010, Taiwan’s state-owned oil refiner CPC Corporation partnered with U-Ming Marine and Chinese Maritime Transport to form Global Energy Maritime, a tanker joint venture created to handle the nation’s crude oil transportation operations. Currently, Taiwan Power Company (TPC) operates a fleet of six post-panamax bulk carriers—four managed by U-Ming Marine and two operated by Kuang Ming Shipping Corp., the dry bulk shipping subsidiary of Taiwan-based shipowner and operator Yang Ming Marine Transport. Kuang Ming Shipping Corp., founded in 1990, began its operations as a booking and logistics service provider for Yang Ming Marine Transport’s container business before expanding into the dry bulk shipping segment in 2008. This strategic shift marked a new chapter in its corporate history, transforming it into one of Taiwan’s leading dry bulk operators with a growing international footprint. Kuang Ming Shipping Corp. now manages a diverse fleet of 19 bulk carriers across multiple size classes, including handymax, supramax, kamsarmax, and capesize bulk carriers, enabling it to serve both long-haul and regional trades efficiently. Its ships regularly carry a wide array of cargoes such as coal, iron ore, bauxite, grain, fertilizer, steel, and cement, connecting Taiwan with key trading regions in Asia, the Middle East, and the Indian Ocean. Under the leadership of Chairman Tsai Ming-Hsu, Kuang Ming Shipping Corp. has built a strong reputation for operational integrity, environmental stewardship, and technical innovation. The shipowner has made significant investments in modern, fuel-efficient ship designs that meet and exceed the latest IMO (International Maritime Organization) environmental requirements, including compliance with EEDI (Energy Efficiency Design Index) and CII (Carbon Intensity Indicator) standards. Kuang Ming Shipping Corp. is known for maintaining close relationships with major charterers, traders, and industrial clients, emphasizing a balance between long-term time charters and spot employment to achieve both stability and market flexibility. In addition to its commercial strengths, Kuang Ming Shipping Corp. has been a pioneer in adopting digital fleet management systems, performance monitoring technology, and predictive maintenance tools that improve safety, efficiency, and cost control. Its new generation of eco-friendly ships incorporates advanced hull coatings, optimized propeller systems, and readiness for alternative fuels such as LNG or methanol. Kuang Ming Shipping Corp.’s participation in the Taiwan Power Company (TPC) joint venture reinforces its strategic vision to play a central role in Taiwan’s energy logistics supply chain. By combining its technical expertise, strong operational background, and decades of experience as the dry bulk arm of Yang Ming Marine Transport, Kuang Ming Shipping Corp. is poised to deliver high-efficiency, low-emission transport solutions that support Taiwan Power Company (TPC)’s long-term energy import and sustainability goals. Through this partnership, Kuang Ming Shipping Corp. continues to expand its profile as one of Taiwan’s most capable and forward-looking dry bulk shipowners, balancing commercial competitiveness with environmental responsibility and technological advancement. Kawasaki Kisen Kaisha (K Line) also has long-term chartering ties with Taiwan Power Company (TPC).
28-April-2019
Trading giant Bunge obtained extremely advantageous terms on a kamsarmax deal. Kamsarmax order was placed by China’s ICBC Financial Leasing. Rival Chinese leasing houses are concerned that the Bunge deal could set a trend that gives lessors less exposure to a market recovery. In the event of a market recovery, trading giant Bunge will be able to pocket the profit. On the other hand, ICBC Financial Leasing holds the risk of an extended depression in Baltic Exchange rates. Shandong Shipping Corporation (SDSC) and ICBC Financial Leasing were co-operating on order for 4 kamsarmax bulk carriers backed by 7 year charter to Bunge. ICBC Financial Leasing’s order for 4 kamsarmax bulk carriers 81K DWT for $27 million each at Cosco Shipping Heavy Industry. Chinese leasing companies have become bold on ordering bulk carriers for their own account and chartering out. ICBC Financial Leasing rivals, including Bank of Communications Financial Leasing (Bocomm Leasing) and China Development Bank Financial Leasing (CDB FL), have unchartered ultramax and kamsarmax bulkers on order.
28-April-2019
Bangkok-listed Thoresen Thai Agencies’ sister company Thoresen Shipping has been negotiating to acquire a modern bulk carrier. Thoresen Shipping is planning to acquire 2014 built 63K DWT MV Western Santos for around $18 million. MV Western Santos was built at Jiangsu Hantong Ship Heavy Industry. MV Western Santos has been controlled by Japan’s Nisshin Shipping since 2014. Thoresen Shipping’s parent company Thoresen Thai Agencies is listed with 21 bulk carriers with an average age of 12 years. In 2018, Thoresen Thai Agencies acquired 2008 built supramax sisterships MV Thor Caliber (ex MV Albion) for around $14 million and MV Thor Chaiyo (ex MV Maritime Unity) for $14 million. In 2018, Thoresen Thai Agencies scrapped 1995 built bulk carriers MV Thor Enterprise for around $6 million and MV Thor Endeavour for around $4 million.
27-April-2019
Geneva-based Chinese grain trader COFCO International was established in 2014 by Chinese state-owned food giant Cofco Corporation. Chinese state-owned food giant Cofco Corporation is a conglomerate that monopolizes China’s food markets. Cofco Corporation aims to create an international powerhouse, therefore Cofco Corporation has acquired Nidera and Noble Group’s agribusiness. On the other hand, COFCO International has also been developing its third-party international trading company. Geneva-based Chinese grain trader COFCO International charters approximately 2,000 ships to haul 50 million tonnes of cargo per year. Out of 50 million tonnes of cargo per year, COFCO International hauls 40 million tonnes of grain cargo and 10 million tonnes of coal, iron ore, and agricultural by-products. Geneva-based Chinese grain trader COFCO International particularly charters in panamax and supramax bulk carriers for grain freight. Furthermore, COFCO International charters in a slight number of capesize bulk carriers. Chinese state-owned food giant Cofco Corporation’s trading and ship chartering arm COFCO International has a team of 45 in Geneva and Singapore offices. Furthermore, COFCO International has operational employees in Istanbul. Currently, Geneva-based Chinese grain trader COFCO International is concentrating on short-term charters than long-term contracts. According to COFCO International estimation the new-building cost of a kamsarmax at $28 million. Nevertheless, with FFA (Forward Freight Agreement) values being approximately $9,000 per day. Therefore, it would exclusively be justified to order kamsarmax new building in the $21 million range. According to COFCO International, the beginning of the South American grain export season has sustained revenues of panamax and supramax ships. Freight markets are predominantly relying on iron ore and coal cargoes. Wheat shipping from Russia decreased in 2019, while Australian supply stays undisturbed. As for soybean, Chinese imports have been struck by lower domestic conditions for animal feed as an outbreak of African swine fever. According to COFCO International, currently, China is the world’s biggest soybean consumer. China imposed a 25% tariff on soybean imports from the US in July 2018, China has raised soybean imports from Brazil.
26-April-2019
Tokyo Stock Exchange-listed shipowner and operator K Line (Kawasaki Kisen Kaisha) reported a net loss of $99 million for Q1 2019. Tokyo-based shipowner and operator K Line’s (Kawasaki Kisen Kaisha) new containership venture with compatriots NYK and MOL hit the bottom line. K Line (Kawasaki Kisen Kaisha) reported revenue of $7 billion for Q1 2019. K Line (Kawasaki Kisen Kaisha) reported a profit of $37 million for Q1 2019. Tokyo-based shipowner and operator K Line (Kawasaki Kisen Kaisha) operated to lower operating costs and improve ship efficiency. According to K Line (Kawasaki Kisen Kaisha), all the problems were due to newly established containership venture ONE. K Line (Kawasaki Kisen Kaisha) is optimistic about the near future. K Line (Kawasaki Kisen Kaisha) was founded in 1966 and operates mainly in the Japanese shore and southeast Asia dry businesses. Furthermore, K Line (Kawasaki Kisen Kaisha) operates bulk carriers between 10K DWT and 28K DWT carrying core dry bulk commodities including coal, steel, lumber, and iron ore. Tokyo Stock Exchange-listed shipowner and operator K Line (Kawasaki Kisen Kaisha) operates Liner and Ro-Ro ships services in Japan.
26-April-2019
Japanese shipowner and operator NS United has elected to merge its tanker, gas carriers, and some of the company’s bulk carriers operations. NS United aimed to strengthen its energy services. Tokyo-listed NS United Kaiun Kaisha Ltd’s two bulk carrier teams handling domestic and general services will be merged with its oil and gas team. NS United’s capesize, tramp, and short-sea operations remain separate. NS United reported a net profit of $83 million for the year ended 31 March 2019. Currently, United Kaiun Kaisha Ltd owns and operates a mixed fleet of 69 vessels.
23-April-2019
Chinese shipowner and operator Jinhui Shipping and Transportation has recently procured a pair of splendid supramax bulk carriers from Athens-based Lou and George Kollakis-led shipowner and operator Chartworld Shipping Corporation. Jinhui Shipping and Transportation has gracefully disbursed a total of $12 million for these two supramax bulk carriers, graciously offering $5.75 million for the esteemed 2001 built supramax bulk carrier MV Aigeorgis and $6.25 million for the 2002 built supramax bulk carrier MV Aifanourios. This acquisition comes as quite an intriguing surprise for Chinese shipowner and operator Jinhui Shipping and Transportation, as they have primarily focused on divesting supramax bulk carriers of a similar age during the past 18 months. Nonetheless, the supramax bulk carriers managed to command much higher prices during these sales. Chinese shipowner and operator Jinhui Shipping and Transportation believe that the purchase prices of these supramax bulk carriers are highly alluring. The acquisition of these splendid supramax bulk carriers will enable Jinhui Shipping and Transportation to further expand their overall cargo-carrying capacity while mitigating the risks associated with excessive capital allocation due to anticipated changes in maritime regulations. Jinhui Shipping and Transportation confidently stated that these supramax bulk carriers are expected to generate a steady and recurring stream of income for the company. 2001 built supramax bulk carrier MV Aigeorgis is scheduled for delivery sometime between May 2 and June 7, while the 2002 built supramax bulk carrier MV Aifanourios is expected to arrive in May. As of now, Chinese shipowner and operator Jinhui Shipping and Transportation possess a distinguished fleet of 18 ships, comprising two post-panamax bulk carriers and 16 supramax bulk carriers.
23-April-2019
Scorpio Bulkers (SALT), a New York-listed shipowner and operator, has decided to retain its multimillion-dollar investment in Scorpio Tankers, citing optimism about the company’s future and the broader product tanker sector. This decision comes amidst questions from analysts regarding the rationale and implications of this inter-company investment, made during an equity issue last year that also attracted investment from billionaire shipowner Idan Ofer. In October 2018, Scorpio Bulkers invested $100 million for a 10.9% stake in its sister company, Scorpio Tankers, with a positive outlook on the product tanker market leading up to the IMO 2020 sulfur regulations. Scorpio Bulkers’ President, Robert Bugbee, expressed confidence in the investment, suggesting that the product tanker market is performing well and potentially exceeding expectations. Scorpio Tankers’ stock has seen significant growth, trading at $26.26 in late afternoon, up from $18.70 at the start of the year. Scorpio Bulkers estimates Scorpio Tankers’ net asset value at around $40, based on recent improvements in the refinery market, with Robert Bugbee mentioning that Scorpio Bulkers (SALT) may consider selling its shares in Scorpio Tankers when the price reaches $60, $70, or $80, but it is too early to decide. While the investment has appreciated to a value of $136 million, according to Ben Nolan of Stifel, Scorpio Bulkers is reluctant to realize this gain just yet. The management expects the product tanker market to reach an inflection point due to IMO 2020, potentially leading to a significant increase in valuation. However, Deutsche Bank analyst Amit Mehrotra has raised concerns about this investment strategy, suggesting that it detracts from Scorpio Bulkers’ identity as a dry bulk company. Mehrotra questioned the focus on the product tanker market during Scorpio Bulkers’ earnings calls and suggested that the company might be compromising its financial performance due to an optimistic outlook on Scorpio Tankers. Robert Bugbee defended the strategy by highlighting that many successful shipping investors hold diversified portfolios with the primary goal of profitability. Robert Bugbee emphasized that Monaco-based Scorpio Bulkers’ investment in Scorpio Tankers aligns with this approach, focusing on generating returns for shareholders. This ongoing debate reflects differing views on the best strategy for Scorpio Bulkers amid changing market dynamics and regulatory landscapes in the shipping industry.
23-April-2019
Bermuda registered and Hong Kong-based Jinhui Shipping and Transportation Limited has signed an MOA (Memorandum of Agreement) to acquire two (2) supramax bulk carriers from Athens-based Chartworld Shipping. Jinhui Shipping and Transportation has not made any bulk carrier purchase since 2013. 2001 built supramax bulk carrier 50K DWT MV Aifanourios and 2001 built supramax bulk carrier 50K DWT MV Aigeorgis will be acquired for around $6 each if the deal is concluded. Currently, Jinhui Shipping and Transportation Limited owns and operates sixteen (16) supramax bulk carriers and two (2) post-panamax bulk carriers.
23-April-2019
Copenhagen-based shipowner and operator Dampskibsselskabet DS Norden A/S is embracing a more asset-light strategy. Recently, Dampskibsselskabet DS Norden A/S reported the sale of four (4) bulk carriers. Dampskibsselskabet DS Norden A/S controlled bulk carrier fleet decreased to 16. Furthermore, Dampskibsselskabet DS Norden A/S aims spilling into its product tanker business. Danish shipowner and operator Dampskibsselskabet DS Norden A/S took the company into a more tradeable position. Now, Dampskibsselskabet DS Norden A/S can adjust to shifts in the market. Copenhagen-listed shipowner and operator Dampskibsselskabet DS Norden A/S owned bulk carrier fleet must be of a size where the company can change the positions. Dampskibsselskabet DS Norden A/S does not want to be stuck with a long-only position. Dampskibsselskabet DS Norden A/S believes that it will be a challenge to make adequate returns by simply keeping a long-only position. To yield better margins, Dampskibsselskabet DS Norden A/S must change the fleet positions much faster, in line with the dry bulk shipping market. Since Q1 2017, Dampskibsselskabet DS Norden A/S sold 12 bulk carriers. Dampskibsselskabet DS Norden A/S has not acquired new bulk carriers since Q1 2017. However, Dampskibsselskabet DS Norden A/S acquired afew tankers during that period. Copenhagen-listed shipowner and operator Dampskibsselskabet DS Norden A/S has been gradually reducing the size of the owned fleet. Dampskibsselskabet DS Norden A/S has split the dry cargo business into two divisions. Dampskibsselskabet DS Norden A/S is now only active in the handy, supramax, and panamax segments. Dampskibsselskabet DS Norden A/S has also been growing asset-light in tanker segment. Dampskibsselskabet DS Norden A/S thinks that the asset-light strategy is well-suited to today’s business world because shipping markets and world trade have been becoming increasingly unpredictable. There has been more volatility in world trade. Thus, owning a fleet of bulk carriers is not acceptable for a corporation like Dampskibsselskabet DS Norden A/S. Danish shipowner and operator Dampskibsselskabet DS Norden A/S aims to be a knowledge-based company rather than asset-based.
23-April-2019
Seoul-based shipowner and operator Polaris Shipping managed 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy’s accident report suggests flag state (Marshall Islands) should make recommendations to the IMO (International Maritime Organization) as structural weakness of VLOC (Very Large Ore Carrier) conversions is revealed. Accident investigators have requested flag state (Marshall Islands) authorities to call on the IMO (International Maritime Organization) to close a crucial loophole in the International Convention for the Safety of Life at Sea (SOLAS) following an investigation into the loss of the 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy. On the catastrophic structural failure of the converted VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy that claimed 22 lives in the Atlantic off Uruguay on 31 March 2017, as MV Stellar Daisy sailed from Brazil to China. According to the flag state (Marshall Islands) report, the MV Stellar Daisy incident due to catastrophic structural failure of the bulk carrier’s hull. Flag state (Marshall Islands) report highlights the exclusion of VLCC-to-VLOC conversions from the Solas Chapter XII additional safety requirement for bulkers over 150 meters. Because of the MV Stellar Daisy’s technical dimensions, only its number one cargo hold had to comply with this International Convention for the Safety of Life at Sea (SOLAS) regulation to survive a flooded condition. International Convention for the Safety of Life at Sea (SOLAS) regulation is crucial because the MV Stellar Daisy could not survive the initial flooding on the day it sank. According to the flag state (Marshall Islands) report, MV Stellar Daisy suffered structural failure that caused rapid flooding of the number two and then number three port wing ballast tanks (WBTs). Afterward, progressive flooding of the cargo holds that within minutes put the MV Stellar Daisyinto a 45-degree list from which MV Stellar Daisy could not recover. In the flag state (Marshall Islands) report, structural problems were classified in the MV Stellar Daisy and other similar aging VLCC-to-VLOC conversions. Very Large Crude Carrier (VLCC)-to-Very Large Ore Carrier (VLOC) converted MV Stellar Daisy sinking proved how fatigue cracks could be catastrophic for conversions. Additionally, structural failure down to the loss of structural strength over time due to material fatigue and corrosion. MV Stellar Daisy’s size of the crack would develop and potentially lead to a loss of shell plate and cause massive, uncontrollable flooding. MV Stellar Daisy was built as a Very Large Crude Carrier (VLCC) and designed to operate for 20 years, sank at the age of 23. Most of the cracking found in the converted Very Large Ore Carrier (VLOC) was in areas of old steel. After the MV Stellar Daisy disaster, the Korean Register of Shipping conducted inspections of 18 Very Large Ore Carrier (VLOC) conversions in the Polaris Shipping fleet.
22-April-2019
German shipowner and operator Blumenthal JMK (Bluships)’s MV Puma is being unloaded in Rotterdam. Dutch media and the FNV Havens union said dockers had refused to unload 2017 built 35K DWT MV Puma due to an ITF (International Transport Workers Federation) inspector being denied access. Blumenthal JMK (Bluships) confirmed MV Puma had arrived in the Dutch port Rotterdam on Wednesday night. Blumenthal JMK (Bluships) has not explained whether ITF (International Transport Workers Federation) inspectors were being given access to its fleet. Blumenthal JMK (Bluships) was made the subject of an ITF (International Transport Workers Federation) inspection campaign this week. The move followed the detention of the 2008 built supramax dry bulk carrier 58K DWT MV Anna-Elisabeth in Australia for breach of Maritime Labour Convention standards. Union said it wants to open a dialogue with Blumenthal JMK (Bluships)’s chief executive Matthais K Reith on improving conditions on its fleet.
22-April-2019
Cosco Shipping Bulk ordered 10 newcastlemax dry bulk carriers 210K DWT at Cosco Shipping Heavy Industry Yangzhou Shipyard (Cosco HI Yangzhou). Cosco Shipping Bulk has confirmed 8 firm newcastlemax dry bulk carriers and 2 optional bulk carriers. Cosco Shipping Bulk is going to pay $54 million per newcastlemax dry bulk carrier and a total $432 million. Newcastlemax dry bulk carriers will be scrubber-fitted and the first delivery will be in H1 2021. Cosco Shipping Bulk is ordering the newcastlemax dry bulk carriers to carry bauxite from Guinea to China for state-controlled Aluminum Corp of China (Chalco) having secured a long-term COA (Contract-of-Affreightment). African country Guinea set for greater bauxite exports after mine approval of government. Chalco (Aluminum Corp of China) has been listed in Hong Kong and New York. Chalco is China’s largest producer of both alumina and aluminum. Beijing-based Chalco (Aluminum Corp of China) has entered into an agreement with the Guinea government to develop a bauxite project in Boffa. Chalco (Aluminum Corp of China) has granted mining licenses for 15 years, with options for another 15 years. West Africa Boffa, Guinea project holds around 1.75 billion tonnes of bauxite.
22-April-2019
India’s biggest private dry bulk and tanker shipowner and operator Great Eastern Shipping (GES) is considering a bond issue worth INR 10 billion ($143 million). On 6 May 2019, Great Eastern Shipping’s (GES) Borad of Directors (BOD) will gather to analyze the debt sale. Currently, Great Eastern Shipping (GES) plans to issue non-convertible debentures in a private placement during 2019. Mumbai-based tanker and bulker shipowner Great Eastern Shipping (GES) made the most of increasing markets to report a bigger profit.
22-April-2019
Japanese shipowner and operator NYK Bulk (Nippon Yusen Kabushiki Kaisha) signed the IMO (International Maritime Organization) 2020 deal with Chinese repair yards. NYK Bulk (Nippon Yusen Kabushiki Kaisha) signed a 50-ship deal with Chinese repair yards to fit BWTS (ballast water treatment systems) and scrubbers to some of NYK Bulk’s (Nippon Yusen Kabushiki Kaisha dry bulk fleet. Japan’s big three shipping companies commenced steps to comply with IMO (International Maritime Organization) 2020 Regulations. Currently, Tokyo Stock Exchange-listed shipowner and operator NYK Line (Nippon Yusen Kabushiki Kaisha) which controls around 750 vessels. NYK Line (Nippon Yusen Kabushiki Kaisha) is leveraging the company’s significant purchasing capacity to strike a price-competitive, all-inclusive bulk carrier deal with the unnamed Chinese yards at a time when dry-dock space is inadequate. Japanese shipowner and operator NYK Bulks’ (Nippon Yusen Kabushiki Kaisha deal mostly involves fitting scrubbers to the NYK Bulks’ (Nippon Yusen Kabushiki Kaisha capesize bulk carriers and VLOCs (Very Large Ore Carriers), including owned ships or those controlled through long-term charters by NYK Bulk (Nippon Yusen Kabushiki Kaisha) out of its fleet of 400 bulk carriers. Japanese shipowner and operator NYK Bulk (Nippon Yusen Kabushiki Kaisha) ordered installations to be organized during special survey dry-dockings when BWTS (ballast water treatment systems) are also due to be fitted. Japanese shipowner and operator NYK Bulk (Nippon Yusen Kabushiki Kaisha) hedges the IMO (International Maritime Organization) 2020 Regulations risk by committing some of the bulk carriers to operate high-sulfur bunkers and scrubbers, with the rest using low-sulfur bunkers. Tokyo-based shipowner and operator NYK Bulk (Nippon Yusen Kabushiki Kaisha) has already reportedly secured low-sulphur bunker oil through the fuel futures market ahead of the MO (International Maritime Organization) 2020 Regulations January deadline. Tokyo Stock Exchange-listed shipowner and operator NYK Bulk (Nippon Yusen Kabushiki Kaisha) secured an $80 million green syndicated loan to fit NYK Bulk’’s (Nippon Yusen Kabushiki Kaisha)ships with scrubbers. The scrubber installation scheme also suits NYK Bulk’s (Nippon Yusen Kabushiki Kaisha) medium-term enterprise strategy.
22-April-2019
Three (3) crewmen injured by fire on Sinotrans Ship Management 2010 built bulk carrier 93K DWT MV Great Aspirations near Lizard Point off the UK. Three (3) seafarers have experienced vital injuries and rescue helicopter picked up crewmen from MV Great Aspirations. An unknown explosion had happened on board of MV Great Aspirations. MV Great Aspirations has anchored at Falmouth for a damage assessment.
22-April-2019
The JJ Ugland Group, based in Grimstad, is in the process of divesting from one of its oldest vessels through its subsidiary, Ugland Bulk Shipping AS. The company is preparing to sell the 2001-built supramax bulk carrier 52K DWT MV Fermita for approximately $6.5 million. This impending sale comes as the MV Fermita is scheduled for a special survey (SS) in November. The pricing of MV Fermita reflects the current downward pressure on bulk carrier values, a trend evident since June when Ugland Bulk Shipping AS sold the sister vessel, the supramax bulk carrier MV Tamarita (also built in 2001), for around $8.5 million. At the time of that sale, a spokesperson from the JB Ugland Group indicated a positive outlook on the market and no urgency to sell other vintage bulk carriers. Despite earlier statements suggesting potential sales in 2018, no further transactions occurred last year. This strategy of selling older vessels aligns with JJ Ugland’s broader fleet renewal efforts, which included the acquisition of three new bulk carriers in 2017 and the expected delivery of three additional vessels from Japanese shipyards by 2020. Currently, JJ Ugland’s fleet includes 11 supramax bulk carriers and four ultramax bulk carriers navigating international waters.
21-April-2019
Norwegian shipping magnate Andreas Kjell Lund Ugland has passed away at the age of 93. Renowned for his innovative approaches in the maritime industry, Andreas Kjell Lund Ugland was a prominent figure, contributing extensively both within Norway and on international platforms. Born in Grimstad, he was educated in technical studies at King’s College, Newcastle. At the young age of 26, Andreas Kjell Lund Ugland began his career at Uglands Rederi, a shipping company founded by his father, Johan Milmar Ugland, in 1930. Together with his brother Johan Jorgen, Andreas Kjell Lund Ugland was pivotal in the operation and expansion of Uglands Rederi. The brothers collaboratively steered the company, with Andreas Kjell Lund Ugland playing a significant role in pioneering the use of limited partnerships (Komandittselskaper) during the 1960s. By 1965, under his guidance, Norway boasted the largest ore carrier fleet, and in 1971, he played a crucial role in founding Hoegh Ugland Autoliners (HUAL) with the Hoegh company, establishing a significant presence in the car carrier market. In 1995, the Ugland brothers divided their business interests, with Andreas Kjell Lund Ugland retiring and passing his shares to his sons Andreas Ove, Johan Benad, and Knut Axel Ugland. His transition of leadership was noted for its effectiveness, setting a benchmark in succession planning within family-owned businesses. Andreas Kjell Lund Ugland also made his mark as a technical expert in shipping, serving as the president of the Tanker Owners’ association, Intertanko. His contributions to the industry were recognized late into his career when nearing the age of 87, he received the innovation award at the Offshore Northern Seas (ONS) conference in Stavanger. Despite his advanced age, Andreas Kjell Lund Ugland remained actively involved in the business, working daily at the JJ Ugland office in Grimstad. His legacy is marked by a commitment to innovation and excellence in the shipping industry.
21-April-2019
Christen Sveaas-controlled Kistefos is preparing to support Western Bulk Chartering (WBC) again through an additional bond transaction, reinforcing the role of sponsor backing in keeping Western Bulk Chartering (WBC) financially flexible while Western Bulk Chartering (WBC) continues to reshape its platform after earlier restructuring. Norwegian shipping investor Christen Sveaas is associated with control of Viking Supply Ships and Western Bulk Chartering (WBC), and Christen Sveaas-controlled Kistefos is described as considering a return to the Oslo bond market in October by tapping a bond issue targeted for 2021 maturity, a step that would provide Western Bulk Chartering (WBC) with fresh funding capacity and refinancing options. The corporate history behind Western Bulk Chartering (WBC) remains central to understanding why capital markets access and sponsor support matter: in 2016, Western Bulk Shipholding (WBS) sold the profitable Western Bulk Chartering (WBC) operation together with the Western Bulk trademark to Christen Sveaas-controlled Kistefos Equity, a transaction that effectively separated an asset-light chartering platform from the remaining shipholding exposure and placed Western Bulk Chartering (WBC) under an owner positioned to support a trading-oriented model. Since that change, Western Bulk Chartering (WBC) has sought to reorganise and stabilise the business, sharpening its operating focus on chartering execution, freight market coverage, and disciplined risk management rather than long-term shipowning exposure. Western Bulk Chartering (WBC) has typically been characterised as a high-activity bulker operator that creates value by matching cargo demand with bulk carrier supply, structuring fixtures and periods, managing voyage decisions, and leveraging a broad counterparty network, and this platform approach means funding resilience is important because it underpins counterpart confidence and the ability to operate through freight market volatility. Bulk Invest, which was previously named Western Bulk, sits in the background of this restructuring story, and the post-2016 landscape left Western Bulk Chartering (WBC) operating as a distinct entity after bankruptcy-related changes, with the chartering business restructured to continue operating while the legacy structure was wound down. In that context, a new bond initiative backed by Christen Sveaas-controlled Kistefos can be viewed as part of the ongoing effort to secure stable financing for Western Bulk Chartering (WBC), maintain sufficient liquidity for day-to-day chartering operations, and give Western Bulk Chartering (WBC) room to pursue market opportunities while continuing to strengthen internal processes, operating discipline, and organisational resilience following the earlier restructuring.
20-April-2019
US-based commodities giant Cargill’s shipping arm Cargill Ocean Transportation suggests online trading platforms look beyond covering ship chartering to include pre and post-trade operations in their offerings. Jan Dieleman-led Cargill Ocean Transportation wants online chartering platforms to assist the company drive digital efficiencies. Chartering giant Cargill Ocean Transportation stated that online chartering platforms must be capable of covering commodities transactions and managing pre and post-trade processes. Cargill Ocean Transportation commented that online chartering platforms may not grow without supplementing the trading of commodities onboard ships. According to one of the world’s biggest ship operators Cargill Ocean Transportation, all contracts should be fully digitalized. Many of the newly embarked freight systems have been initiated by start-ups. Nevertheless, prominent charterers such as BHP and Clarksons are also testing the new online chartering platforms. Cargill Ocean Transportation remarked that online chartering platforms must deliver an industry-wide solution. On the other hand, up until now, there have been quite a lot of online chartering platforms, but the shipping market has been hesitant to adopt any of them. The key to being successful for any online chartering platform is the support of a lot of leading players in the dry bulk chartering market. In 2018, Archer Daniels Midland (ADM), Bunge, Cargill Ocean Transportation and Louis Dreyfus Co (LDC), and Cofco International revealed a joint project to standardize data and digitize international agricultural shipping transactions. However, the main chartering market players are going to have to collaborate for an industry solution. If there are various approaches for ship chartering and pre and post-trade processes, there may be substantial costs in integrating them. Cargill Ocean Transportation believes that a lot of money can be saved for the shipping industry by operating fewer and better online chartering platforms. US chartering and trading giant Cargill Ocean Transportation supports blockchain technology and considers that digitalizing all the documents will open up plenty of opportunities. Cargill Ocean Transportation has partnered with Descartes Labs, which utilizes satellite data to forecast forthcoming crop production. The movement towards more digitalization comes as commodities trading companies encounter shrinking margins amid fierce competition. One of the world’s biggest ship operators Cargill Ocean Transportation has been inaugurating external partnerships to design digital projects to optimize supply chains, improve trading outcomes, and assist the company’s buyers and suppliers make more reasonable business decisions.
18-April-2019
Hong Kong-based handysize specialist Taylor Maritime acquired 2003 built 52K DWT MV Ella (ex MV Tigris) from Niovis Shipping. Ed Buttery led Taylor Maritime has acquired its first larger dry bulk carrier. MV Ella (ex MV Tigris) deal took place at the end of 2018. MV Ella (ex MV Tigris) is Taylor Maritime’s oldest ship in the fleet. MV Ella (ex MV Tigris) was built at The Tsuneishi Zosen in 2003. Ed Buttery led Taylor Maritime has started acquiring secondhand Japanese-built handysize bulk carriers in 2014.
17-April-2019
Oslo Stock Exchange-listed and Hong Kong-based Jinhui Shipping and Transportation Limited’s chairman Siu Fai Ng increase his shares of the company. Jinhui Shipping and Transportation Limited’s chairman Siu Fai Ng purchased the company’s Oslo-listed shares for around $16,266 in total. Jinhui Shipping and Transportation Limited’s chairman Siu Fai Ng and his wife’s total shares increased to 4.8 million which is equivalent to 4.45% of the Jinhui Shipping and Transportation Limited. Furthermore, Jinhui Shipping and Transportation Limited’s Siu Fai Ng holds indirect stakes in the shipowning company through his majority shareholding in Jinhui Holdings and Fairline Consultants. Jinhui Holdings and Fairline Consultants are majority shareholders in Oslo Stock Exchange-listed and Hong Kong-based Jinhui Shipping and Transportation Limited.
17-April-2019
Navios Maritime Holdings, led by CEO Angeliki Frangou, is reportedly advancing its fleet renewal strategy with the sale of one of its older bulk carriers. According to shipbrokers, the 53K DWT supramax bulk carrier MV Navios Mercator, constructed in 2002, has been sold to an unidentified buyer for approximately $7 million. At the time of this report, officials from Navios Maritime Holdings were unavailable for comment regarding the sale. This transaction follows a similar sale by the New York-listed company earlier in the year, where the 50K DWT supramax bulk carrier MV Navios Meridian, also built in 2002, was sold for $6.8 million as detailed in the company’s most recent quarterly financial statement. These sales are part of a broader effort by Navios Maritime Holdings to modernize its fleet, which includes selling off older vessels. Navios Maritime Holdings, based in Athens, maintains a diverse fleet exceeding 60 owned and chartered vessels, encompassing a range from capesize to handysize bulk carriers. The fleet includes ten other bulkers that were built in the early 2000s, indicating a continued focus on updating and optimizing the company’s maritime assets.
17-April-2019
Athens-based shipowner and operator PrimeBulk Shipmanagement Ltd has completed the sale of the 2009-built supramax bulk carrier 57K DWT MV Moonray to a Chinese shipowner and operator for about $10 million, continuing its disciplined strategy of fleet renewal and asset optimization. The MV Moonray is a Dolphin 57 type supramax bulk carrier, a well-known design conceived by the Shanghai Merchant Ship Design Research Institute, which operates under the umbrella of China State Shipbuilding Corporation. The Dolphin 57 design, praised for its efficiency, solid construction, and versatility, has become a preferred choice among shipowners seeking reliable tonnage for global dry bulk operations. The Chinese shipowner and operator that acquired the MV Moonray is expected to deploy the supramax bulk carrier for international trading routes, as domestic coastal markets in China remain under pressure due to subdued charter earnings and increasingly stringent environmental regulations governing imported tonnage introduced in 2018. For Athens-based shipowner and operator PrimeBulk Shipmanagement Ltd, the sale represents a strategic divestment in a favorable secondhand market environment, allowing the Greek shipowner to monetize an ageing asset and redeploy capital toward modern, eco-efficient ships. Led by Greek shipping executive Paul Coronis, PrimeBulk Shipmanagement Ltd has established itself as one of the more agile and professionally managed privately owned shipowners in Greece’s dry bulk sector. Headquartered in Athens, PrimeBulk Shipmanagement Ltd operates a diversified fleet that spans the capesize, panamax, supramax, and handysize bulk carrier segments, maintaining long-standing relationships with leading charterers, brokers, and financiers worldwide. The Greek shipowner and operator’s management philosophy is rooted in a combination of operational discipline, market timing, and risk-balanced investment decisions. Over the years, PrimeBulk Shipmanagement Ltd has demonstrated consistent success in buying and selling ships at optimal points of the market cycle, capitalizing on asset appreciation while maintaining fleet competitiveness. The sale of the supramax bulk carrier MV Moonray follows several other asset disposals by PrimeBulk Shipmanagement Ltd in recent quarters, part of a broader effort to streamline operations and enhance fleet efficiency. The shipowner and operator’s current strategy emphasizes fleet modernization, focusing on acquiring younger, fuel-efficient, and environmentally compliant bulk carriers equipped to meet International Maritime Organisation (IMO) decarbonisation and Energy Efficiency Existing Ship Index (EEXI) requirements. PrimeBulk Shipmanagement Ltd also provides full-scale in-house management services, including technical supervision, crewing, commercial management, voyage optimization, and safety compliance, ensuring operational integrity and performance across its fleet. Under the leadership of Paul Coronis, the Athens-based shipowner and operator has successfully positioned itself as a reliable counterpart for major charterers and commodity traders in both the Atlantic and Pacific markets. The company’s emphasis on sustainability, transparency, and cost control has enabled it to maintain profitability through volatile market cycles. PrimeBulk Shipmanagement Ltd’s investment approach remains firmly opportunistic—acquiring ships during downturns and divesting older assets during peaks—reflecting the traditional yet adaptable business model that defines Greek shipping leadership. Following the sale of the MV Moonray, PrimeBulk Shipmanagement Ltd’s active fleet now comprises five bulk carriers, signaling a leaner but more efficient operating platform. The fleet reduction forms part of a long-term plan to transition toward modern, eco-ready tonnage that offers both environmental compliance and higher commercial appeal to first-class charterers (FCC). Through its consistent financial prudence, technical reliability, and market foresight, Athens-based shipowner and operator PrimeBulk Shipmanagement Ltd continues to strengthen its standing among Greece’s new-generation shipping enterprises—balancing traditional maritime values with modern asset management practices and maintaining its reputation as a strategic, performance-driven player in the global dry bulk shipping industry.
17-April-2019
Thailand-based Bangkok-listed Thoresen Thai Agencies (TTA) subsidiary Thoresen Shipping has recently procured the 2014 built ultramax bulk carrier MV Western Santos from Japanese shipowner and operator Nisshin Shipping for around $18 million. Jiangsu Hantong-built ultramax bulk carrier MV Western Santos had just concluded its most recent inspection this past February. In the previous annum, Japanese shipowner and operator Nisshin Shipping divested itself of four (4) bulk carriers and has now presented three kamsarmax bulk carriers for potential sale, aiming to accommodate a forthcoming wave of new constructions. This esteemed Japanese enterprise Nisshin Shipping presently has 47 ships pending, with 28 of them being ultramax bulk carriers, slated for construction in China. Japanese enterprise Nisshin Shipping’s current naval fleet boasts 59 ships in operation. As for Thoresen Thai Agencies (TTA) subsidiary Thoresen Shipping, 2014 built ultramax bulk carrier MV Western Santos transaction signifies their inaugural acquisition for the ongoing year. In a strategic move to rejuvenate Thoresen Shipping’s fleet, Thoresen Shipping offloaded two handymax bulk carriers from 1995 back in 2018 and subsequently incorporated two supramax bulk carriers built in 2008 into Thoresen Shipping’s fleet.
17-April-2019
UAE-based Shaikh-family controlled shipowner and operator Tomini Shipping has continued to reshape its dry bulk footprint by selling two Japanese-built supramax bulk carriers, with UAE-based shipowner and operator Tomini Shipping placing the pair with a Chinese shipowner and operator as part of a broader S&P (Sale and Purchase) strategy that blends fleet renewal with capital recycling. Dubai-based Tomini Shipping’s chartering activities are performed by Alpina Chartering in Denmark, and the combination of active S&P (Sale and Purchase) moves and an established chartering setup highlights how Tomini Shipping has worked to balance ship employment, counterparty reach, and asset decisions through different market phases. S&P (Sale and Purchase) shipbrokers have suggested that Tomini Shipping’s two other Dolphin 57 Japanese-built supramax bulk carriers may also be offered for sale, which would be consistent with a portfolio-cleanup approach where Tomini Shipping reduces older supramax exposure and reallocates capital toward ship sizes and ship profiles that better match Tomini Shipping’s forward expansion plan. In parallel, Tomini Shipping has turned to China for around $100 million in financing connected to fleet development, underlining that Tomini Shipping is pairing asset transactions with external funding to support growth rather than relying on a single financing channel. At the time referenced, Dubai-based Shaikh-family-controlled shipowner and operator Tomini Shipping operated a fleet of eleven (11) bulk carriers, and Tomini Shipping also had an orderbook covering three (3) kamsarmax and three (3) ultramax newbuilding bulk carriers, a pipeline that points to a deliberate push into modern ships that can deliver stronger efficiency, stronger commercial appeal, and more competitive operating economics for charterers. Taken together, the Japanese-built supramax sales to a Chinese shipowner and operator, the market talk around additional Dolphin 57 Japanese-built supramax bulk carriers potentially being for sale, and the China-linked financing effort show Tomini Shipping actively managing both sides of the balance sheet—moving ships out, lining up funding, and keeping a steady build toward a larger, more modern bulk carrier fleet supported by Dubai-based oversight and Alpina Chartering in Denmark for chartering execution.
17-April-2019
Athens-based Tsakos Group’s dry bulk shipping arm Tsakos Conbulk Services (TCB) S.A. chartered out two (2) kamsarmax bulk carriers on a long-term basis. Nikolas Tsakos-led shipowner and operator Tsakos Group owned 2019 built kamsarmax bulk carrier 82K DWT MV Psarros D and 2019 built kamsarmax bulk carrier 82K DWT MV Betty K chartered out $11,000 per day for two years. Tsakos Conbulk Services (TCB) S.A. orders new vessels when backed by long-term employment. 2019 built kamsarmax bulk carrier 82K DWT MV Psarros D and 2019 built kamsarmax bulk carrier 82K DWT MV Betty K will be delivered soon to an unidentified FCC (first-class charterer) for two years. Tsakos Conbulk Services (TCB) S.A. ordered kamsarmax bulk carriers MV Psarros D and MV Betty K at Jiangsu Yangzijiang Shipbuilding. Jiangsu Yangzijiang Shipbuilding will deliver MV Psarros D and MV Betty K to the Tsakos Conbulk Services (TCB) S.A. next week. Two-year charters are common for capesize bulk carriers but not for small bulk carriers. Athens-based Tsakos Group has mainly been active in the tanker sector. Tsakos Group’s first kamsarmax bulk carrier order in a decade. Currently, kamsarmax bulk carrier charter rates are around $8,900 per day. Lately, long-term charter rates and spot rates have been plunging. Tsakos Group incorporates Tsakos Energy Navigation Limited (TEN), Tsakos Shipping & Trading, Tsakos Columbia Shipmanagement (TCM) S.A, Tsakos Shipping (London) Ltd, Maria Tsakos TCM Academy, Tsakos Maritime Philippines Inc (TMPI), Argosy Insurance Company Ltd, Tsakos Industrias Navales S.A., and Tsakos Conbulk Services (TCB) S.A.
17-April-2019
The esteemed Zeaborn Group of Germany has elegantly procured the share previously held by New Mountain Capital in Zeamarine. This notable acquisition materialized after the formation of a collaborative venture the preceding year, amalgamating the commercial endeavors of Intermarine, Zeaborn Chartering, and Rickmers-Line, subsequently establishing one of the globe’s most preeminent MPP carriers. After a distinguished tenure spanning over a quarter-century with Intermarine, Mr. Andre Grikitis has gracefully chosen to relinquish his position as the Chief Executive Officer of Zeamarine. In his stead, Zeaborn Ship Management GmbH & Co. KG.’s illustrious managing partner, Mr. Ove Meyer, is poised to ascend to this pivotal role.
16-April-2019
International Transport Worker’s Federation (ITF) has risen inspection operations on Germany’s one of the oldest shipping company Blumenthal JMK (Bluships). After the detention of Blumenthal JMK (Bluships) operated 2008 built supramax bulk carrier 58K DWT MV Anna Elisabeth in Australia for breach of Maritime Labour Convention standards, International Transport Worker’s Federation (ITF) has extended investigations for seafarers’ living conditions, standards and wages. International Transport Worker’s Federation (ITF) is going to use its global network of 147 inspectors around the world to check seafarers’ standards on Blumenthal JMK (Bluships) operated bulk carriers. Previously, the International Transport Worker’s Federation (ITF) revealed the state of food stores on Blumenthal JMK (Bluships) operated bulk carriers. Blumenthal JMK (Bluships) operated bulk carriers were examined after seafarers’ accusations. International Transport Worker’s Federation (ITF) has been trying to communicate with Blumenthal JMK’s (Bluships) CEO Matthais K Reith on developing conditions on the company’s fleet and improve its business practices in line with other world-class shipping companies. Furthermore, the International Transport Worker’s Federation (ITF) requests Blumenthal JMK (Bluships) to comply with ITF agreements. In recent years, some responsible ship charterers have been preferring International Transport Worker’s Federation (ITF) certified ships during charter negotiations.
16-April-2019
Australian mining giant Rio Tinto exported 14% less iron ore in Q1 2019 due to a series of cyclones and has decreased the end of 2019 estimations. In March 2019, Rio Tinto reported that iron ore production was affected by cyclones. Furthermore, Rio Tinto’s iron ore production was also impacted by the fire at Cape Lambert A in January 2019. Cape Lambert A is an iron ore terminal with a capacity of loading more than 85 million tons per year. In March 2019, due to cyclones, Port of Port Hedland closed for 92.5 hours, Port of Dampier closed for 132 hours and Port of Ashburton closed for 109 hours. Rio Tinto’s iron ore exports reached 69 million tons in Q1 2019 versus 71 million tons in Q1 2018. These unfortunate events will impact the Australian mining giant Rio Tinto’s Q2 2019 performance and year-end reports. Australian mining giant Rio Tinto decreased 2019 year-end guidance for Pilbara exports to 333 million tons from 350 million tons. According to Rio Tinto, Q1 2019 operational performance is better than Q1 2018. Australian mining giant Rio Tinto aims to continue providing unsurpassed returns to the company’s shareholders in the short, medium, and long term. Rio Tinto completed Amrun bauxite mine in advance and produced 13 million tons of bauxite in Q1 2019.
16-April-2019
Sanko Steamship Co Ltd (Sanko Kisen KK), after a hiatus of seven years, has placed a newbuilding order with Tsuneishi Shipbuilding in Japan. The Tokyo-based shipowner Sanko Steamship Co Ltd (Sanko Kisen KK) has ordered an 82K DWT built kamsarmax bulk carrier, set for delivery in the Q4 2020. Although Sanko Steamship Co Ltd (Sanko) announced the order for the vessel equipped with a scrubber on its website, it did not provide details about the shipyard, the cost, or the rationale behind the order. It’s worth noting that not many shipping companies have chosen to equip ships of this size with scrubbers. However, with upcoming environmental regulations, there’s a perceived advantage in having a scrubber installed. Sanko Steamship Co Ltd (Sanko Kisen KK) anticipates a continued price disparity between high-sulphur and low-sulphur fuels and has expressed concerns about the availability of low-sulphur fuel. The impending IMO 2020 regulation is cited as a significant factor for this deal. Given the passage of time, fleet renewal becomes essential for Sanko Steamship Co Ltd (Sanko Kisen KK). The Sanko Steamship Co Ltd’s (Sanko Kisen KK’s) current financial health is stable, attributed to favorable market conditions in the recent past. Sanko Steamship Co Ltd’s (Sanko Kisen KK’s) shareholder has shown support for this new order. Historically, Sanko Steamship Co Ltd (Sanko Kisen KK) was a significant player in the shipping industry, managing around 200 vessels. However, Sanko Steamship Co Ltd (Sanko Kisen KK) faced insolvency in 2012, only to recover from the bankruptcy in 2014. Presently, Sanko Steamship Co Ltd (Sanko Kisen KK) is under the control of the US-based Elliott Management Corp and has a fleet of three bulkers: a capesize (currently on sale) and two panamaxes. One of the panamax bulk carriers is scheduled for scrubber retrofitting this summer. Today, Sanko Steamship Co Ltd (Sanko Kisen KK) operates as a standard company with a primary focus on the dry bulk sector, working diligently to rebuild relationships with bulker clients.
15-April-2019
Under the leadership of Lars Christian Skarsgard, the Oslo-listed entity, Belships, acquired 2016 built ultramax bulk carrier 63K DWT MV Sofie Victory. This lavish transaction, amounting to a hefty $24.15 million, saw the vessel transition from the ownership of Sofie Victory AS. The distinguished MV Sofie Victory had previously been a jewel in the portfolio of Espen Galtung Dosvig's EGD Ultra Eco, with EGD holding a dominant 80% stake. The remaining quintile of ownership was vested with the Cyprus-based conglomerate, Blossom Shipmanagement. The financial intricacies of the deal encompassed $14 million as debt, a liquid payment of $2 million in cash, with the residual sum manifesting as new shares in Belships. The esteemed 2016 ultramax bulk carrier, MV Sofie Victory, sails under the operational prowess of Primbulk Shipmanagement from Greece. Additionally, it holds a time charter to ED&F Man Shipping, valid until March 2021, with a rate anchored to prevailing indices but guaranteeing a floor that towers above the extant market benchmarks. Upon the integration of this acquisition, Belships' fleet will burgeon to comprise 17 supramax and ultramax bulk carriers. This is complemented by the anticipation of a fresh addition to their arsenal, set for debut in the first half of 2020. The procurement of MV Sofie Victory, accompanied by the ensuing issuance of shares, is emblematic of Belships' strategic endeavor to amplify its shareholder base, thereby enhancing the fluidity of its shares in the market. In a recent crescendo of expansions, just the previous week, Belships added another feather to its cap. It procured the Tsuneishi Cebu-forged, 58,000 DWT 2008 supramax bulk carrier named MV Viola for a sum of $13 million from its compatriot, the Wenaas Group. This acquisition marked the culmination of Wenaas Group's exclusive ownership and heralded Belships' inaugural foray into S&P (Sale and Purchase) post its merger with Lighthouse Navigation.
15-April-2019
Pola Maritime, after a hiatus exceeding two years, has elegantly procured the 2016 built handysize bulk carrier 37K DWT MV Glorious Sunrise. Pola Maritimea tendered a sum of $18.5 million to Singapore-based shipowner and operator PCL (Pacific Carriers Ltd) for the resplendent MV Glorious Sunrise crafted in Imabari. Curenty. It’s worth noting that Singapore-based shipowner and operator PCL (Pacific Carriers Ltd) had previously secured 2016 built handysize bulk carrier 37K DWT MV Glorious Sunrise in October 2017, acquiring it from Japan’s esteemed Nippo Shipping at a price that remains enshrouded in secrecy. Established in Cyprus in 2006, the Russian-owned private enterprise, Pola Maritime, presently commands a flotilla of ten bulk carriers. This prestigious armada comprises nine handysizes and a singular handymax bulk carriers.
14-April-2019
Taipei-based shipowner and operator Taiwan Navigation Company (TNC) continues to streamline and modernize its fleet by entering into newbuilding contracts with Japan’s Oshima Shipbuilding. These contracts involve the construction of two Kamsarmax bulk carriers, each with a capacity of 81K deadweight tons (DWT). Anticipated delivery for these Kamsarmax vessels is slated for the year 2022, and the combined value of the contracts stands at $66.22 million. This decision follows Taiwan Navigation Company’s (TNC) earlier orders placed in March with Namura Shipbuilding for two 80K DWT bulk carriers. Taiwan Navigation Company (TNC) has emphasized that these eco-friendly bulk carriers will gradually replace older vessels in their existing fleet, allowing them to maintain a fleet with an average age below six years old by the year 2022. Currently, Taiwan Navigation Company (TNC) operates a fleet consisting of 20 bulk carriers, and they have an additional six vessels on order. These strategic moves reflect Taiwan Navigation Company’s (TNC) commitment to modernization and fleet optimization within the maritime industry.
13-April-2019
Minnesota-headquartered trading giant Cargill’s shipping arm Cargill Ocean Transportation forecasts an upside in bulk carrier rates despite current shipping market weakness. Chartering giant Cargill Ocean Transportation states that recovery in Brazilian and Australian iron-ore exports and a US-China trade agreement can push up earnings in Q4. Climate and industrial incidents, coupled with trade and geopolitical tension, have pushed spot earnings for bulkers below $10,000 per day this year across the ship classes. US chartering and trading giant Cargill Ocean Transportation believes capesize bulk carrier rates are presumably bottoming out if the iron-ore supply disruptions in Brazil and Australia can be settled. Brazilian mining giant Vale had anticipated iron-ore sales to fall to 75 million tonnes in 2019 after a burst dam forced the Vale to close several mines in January. Cyclone Veronica provoked Rio Tinto to decrease iron-ore production by six million tonnes and BHP by 14 million tonnes on an annualized basis. In other words, 100 million tonnes of iron-ore losses in 2019. Nevertheless, some shipping market players foresee firm iron-ore prices will incentivize the mining goliaths to increase shipments as soon as they can. Chartering giant Cargill Ocean Transportation expects that panamax and supramax bulk carrier earnings have rebounded since February the commencement of the grain export season in South America. Cargill Ocean Transportation expects that the ship chartering environment should strengthen further if the US and China can find a resolution to their trade conflict. Afterward, Chinese imports of US soybean could recover from approximately 25 million tonnes to 35 million tonnes per annum. Cargill Ocean Transportation expects that China would buy more US soybean when the export season commences in September. Cargill Ocean Transportation stated that the sentiment will improve. Cargill Ocean Transportation has long been a supporter of free trade, however geopolitical and trade tensions have played an increasing role in seaborne trade in the past year. Chartering giant Cargill Ocean Transportation will operate in a volatile environment whether it’s due to disruptions to supply chains or geopolitics. Cargill Ocean Transportation believes that every charterer must have a reasonable risk-management capability.
13-April-2019
Scorpio Bulkers (SALT), under the leadership of Emanuele Lauro, has entered into a sale and leaseback agreement with AVIC International Leasing, a branch of the Chinese aerospace and defense giant, Aviation Industry Corp of China. This deal involves the sale of six bulk carriers, all built in 2015 with a deadweight tonnage (DWT) of 77K. The vessels involved in this transaction are the MV Antares, MV Bravo, MV Hydra, MV Leo, MV Lyra, and MV Maia, which will be transferred to AVIC International’s balance sheet for the next eight years. This strategic move is set to bolster Scorpio Bulkers’ liquidity by a total of $62.4 million, inclusive of $9.8 million allocated for the installation of a scrubber on each ship, after settling some existing debts. The transaction is anticipated to be completed within this quarter. Following the sale, Scorpio Bulkers will continue to operate these vessels under an eight-year bareboat charter agreement, with an option to purchase the ships after two years and a mandatory buyback at the lease’s conclusion. Scorpio Bulkers, based in Monaco, will maintain a diversified fleet comprising 55 ships, including 17 kamsarmax and 37 ultramax bulk carriers, plus an additional chartered-in ultramax bulk carrier, after the sale of two kamsarmax bulk carriers. This transaction follows a similar strategy as Scorpio Bulkers’ sister company, Scorpio Tankers, which executed a sale and leaseback deal for 21 ships last year, underscoring the Scorpio group’s proactive financial management and strategic fleet operations amidst the dynamic maritime industry landscape.
12-April-2019
A second vessel linked to Greek shipping magnates George and Stathis Gourdomichalis, the 30K DWT handysize bulk carrier MV Fearless (built 2001), has been seized amidst ongoing legal proceedings initiated by the Danish charterer Pacific Gulf Shipping Co. This action follows the earlier seizure of the 52K DWT supramax bulk carrier MV Vigorous (built 2005) in Portland, Oregon, in December. Court documents recently made public reveal that MV Fearless was arrested in Houston after Pacific Gulf Shipping Co. filed a lawsuit against several companies associated with the Gourdomichalis brothers in February. The legal disputes stem from issues with the 73K DWT panamax bulk carrier MV Adamastos (built 1995), which was abandoned in 2015 after being detained by Brazilian authorities due to over 40 deficiencies found while the vessel was loading soybeans destined for Japan and Singapore. The vessel subsequently broke free from its moorings and ran aground, leading to its declaration as abandoned in January 2015 amidst reports of insufficient provisions for the crew. Pacific Gulf Shipping Co. pursued an arbitration in London, resulting in a $19.2 million award against Adamastos Shipping & Trading, the registered owner of the MV Adamastos. Efforts to enforce this award led to the seizure attempts of MV Vigorous, initially in South Africa (where it was unsuccessful) and subsequently in Portland (where it was successful). Following the posting of a $9.5 million bond by Vigorous Shipping & Trading, MV Vigorous resumed sailing. The Houston lawsuit mirrors earlier legal actions in Portland, asserting that Blue Wall Shipping & Trading Ltd, Phoenix Shipping & Trading SA, and the ship registration companies involved are controlled by the Gourdomichalis brothers, and thus Pacific Gulf Shipping Co. should be able to collect from them as per the arbitration award related to the MV Adamastos. New details emerged from the discovery in the Portland case, indicating complex financial arrangements and minimal funding in the accounts of Adamastos Shipping & Trading prior to the chartering to Pacific Gulf Shipping Co. The complaint further reveals that Phoenix Shipping & Trading SA is majority-owned by the Gourdomichalis brothers through two other entities, Thalassa Gourdomichalis and Alastor Gourdomichalis, with the remaining 12.5% held by George Gourdomichalis’ son through a company called Golden Hind. It characterizes the ownership and mortgage of the MV Adamastos as a “complex financing scheme” that allowed the brothers substantial control with minimal financial input. Legal representatives for Blue Wall Shipping Ltd. have dismissed the veil-piercing allegations as groundless and are prepared to contest them vigorously, according to Bruce Paulsen, an attorney with Seward Kissel. Meanwhile, MV Fearless remains anchored in the Gulf of Mexico off Galveston. Despite nearly being released in mid-March after legal arguments suggested that a company down the charter chain had not yet established liability on the part of Pacific Gulf Shipping Co., a judge reversed his decision following an emergency motion by Pacific Gulf Shipping Co. Last Friday, further arguments were heard on a second motion for reconsideration by the registration company of MV Fearless.
11-April-2019
Chinese state-owned food giant Cofco Corporation’s trading arm COFCO International stated that newbuilding bulk carrier costs are too high for ship investments. One of the world’s biggest bulk carrier charterers COFCO International showed little interest in ship investments as low values in FFA (Forward Freight Agreements) may point to weak charter rate conditions forward. Geneva-based Chinese grain trader COFCO International stated the company expects a sustainable return for any ship investments. There is remarkably low long-term demand from charterers. Since Q4 2018, FFA (Forward Freight Agreements) values have weakened by over 20% across ship segments. In contrast, new-building ship price tags have increased due to steel prices and yards under pressure from their banks not to fetch loss-making deals. According to Chinese state-owned food giant Cofco Corporation’s trading arm COFCO International, currently, there is a significant mismatch between ship prices and FFA (Forward Freight Agreements) values. According to Geneva-based Chinese grain trader COFCO International, the weakness in freight markets has mainly resulted from lower Chinese coal and soybean imports and disruptions to Brazilian and Australian iron ore exports. On the other hand, panamax and supramax bulk carriers’ revenues have rebounded as the grain export season of South America commences, capesize bulk carriers’ rates are still plagued by lower-than-normal iron ore shipments. According to Geneva-based Chinese grain trader COFCO International, currently, the Brazilian soybean export volumes are declining every month.
10-April-2019
Singapore-based shipowner and operator Eastern Pacific Shipping (EPS) controlled fleet increases by almost $700 million in a year. Furthermore, diversified shipowner and operator Eastern Pacific Shipping (EPS) ordered $1.8 billion worth of vessels. Currently, Idan Ofer-led Eastern Pacific Shipping (EPS) held its rank as Singapore’s biggest shipowner. In 2018, Eastern Pacific Shipping (EPS) ordered four (4) LR2 tankers and seven (7) ULCVs (Ultra Large Container Vessels). After Eastern Pacific Shipping (EPS), Singapore’s biggest shipowners are Ocean Network Express (ONE), Ocean Tankers, Pacific International Lines (PIL), and Hafnia respectively.
10-April-2019
Ohio based US-flag lake-fitted bulk ship operator Interlake Steamship has ordered the first new Great Lakes fitted bulk carrier since 1983. Great Lakes fitted bulk carrier will be constructed at Wisconsin Shipyard. Wisconsin Shipyard is owned by Italian Fincantieri Bay Shipbuilding. Great Lakes fitted bulk carrier will be delivered to Interlake Steamship in the middle of 2022. Great Lakes fitted bulk carrier will have a self-unloading mechanism and will be the first laker built in the Great Lakes area since 1983. Great Lakes fitted bulk carrier will be 28K DWT.
Interlake Steamship is the biggest privately-owned US-flag shipowner and operator on the Great Lakes. Interlake Steamship owns and operates nine (9) Great Lakes fitted bulk carriers. Interlake Steamship is led by president Mark Barker. Interlake Steamship and Fincantieri Bay Shipbuilding had a prolonged business connection. Fincantieri Bay Shipbuilding has completed exhaust-gas scrubber installations, as well as regular maintenance and regulatory dry-dockings on Interlake Steamship’s bulk carriers.
10-April-2019
Dry cargo stakeholders are keenly observing the market in anticipation of a potential capesize sale this week, which could pave the way for an uptick in transactions and set a new pricing benchmark. Remarkably, no capesize has been sold for further trading this year, marking an unparalleled hiatus since the last transaction in December. The shipping community has been speculating that Sanko Steamship Co Ltd (Sanko Kisen KK) controlled 2005 built capesize bulk carrier 177K DWT MV Euro Fortune might be the vessel to end this sales drought and clarify the prevailing ambiguity about ship values. While bids for the ship are believed to be around $12 million, counter-offers have yet to be made. Japanese sellers have become more selective, not accepting as many offers as before. They would have ideally aimed for a figure closer to $13 million. 2005 built capesize bulk carrier 177K DWT MV Euro Fortune is currently the sole capesize in Sanko Line’s fleet. Sanko Steamship Co Ltd (Sanko Kisen KK) recently sold one of its two panamaxes, 2006 built panamax bulk carrier 76K DWT MV Ocean Wind, and just last week, Sanko Steamship Co Ltd (Sanko Kisen KK) commissioned a scrubber-equipped kamsarmax newbuild from a Japanese shipyard. Although the capesize sale and purchase market has seen limited activity, the combination of weak rates and subdued market sentiment has prompted brokers to adjust their paper prices downward. Shipbrokers believe that a successful sale of the 2005 built capesize bulk carrier 177K DWT MV Euro Fortune could rejuvenate the market by providing a definitive price point.
10-April-2019
Taiwan Stock Exchange-listed shipowner and operator Wisdom Marine Lines Co Ltd has quadrupled earnings in 2018 as revenue increased. Chun-Sheng Lan-led shipowner and operator Wisdom Marine Lines Co Ltd reported a net profit of $58.3 million for 2018. Wisdom Marine Lines Co Ltd reported revenue of $428 million for 2018. Wisdom Marine Lines Co Ltd reported operating costs of $309 million for 2018. Last week, Taipei-based shipowner and operator Wisdom Marine Lines Co Ltd disclosed plans to raise almost $71 million from the sale of bonds and new shares for fleet expansion, installation of BWTS (ballast water treatment systems), and debt repayments. Wisdom Group’s subsidiary Wisdom Marine Lines Co Ltd offers to sell up to 80 million new shares which will be used for fleet expansion. In March 2019, Wisdom Marine Lines Co Ltd stated the company would order a 38K DWT handy bulk carrier at Namura Shipbuilding for around $25 million and a 63K ultramax bulk carrier bulker at Tsuneishi Shipbuilding for around $31 million. Taiwan Stock Exchange-listed shipowner and operator Wisdom Marine Lines Co Ltd will take the delivery of the bulk carrier new buildings in 2021. Currently, Wisdom Marine Lines Co Ltd has a fleet of 132 bulk carriers.
9-April-2019
Croatian ship owner and operator Uljanik Plovidba is being investigated over alleged improper gains from a newbuilding contract. Croatian tanker and bulker owner Uljanik Plovidba has been probed due to the alleged misconduct of the former managing director for four newbuilding contacts at unrelated shipbuilder Uljanik Group’s 3 Maj yard in 2009. Croatian Uljanik Plovidba directors resigned after the arrest of 12 managers. From 4 newbuilding contracts Croatian Uljanik Plovidba directors potentially wrongfully benefited around $8.76 million (HRK 58 million). 3 Maj is not listed as having built any such ships for Uljanik Plovidba previously. The investigation is being conducted against the former managing director as a responsible person within Croatian tanker and bulker owner Uljanik Plovidba. Uljanik Plovidba is expressly denying any and all allegations that it potentially wrongfully benefited as alleged. Furthermore, Uljanik Plovidba has a claim for compensation around HRK 80 million arising from a cooperation agreement. On 7 March 2019, Uljanik Plovidba has filed a request for mediation with the Croatian general attorney office. This was a mandatory procedure before filing a claim for compensation against the Croatian government. After the rejection of the rescue plan, Uljanik Plovidba most probably will be bankrupt. Beginning of April 2019, Croatian Uljanik Plovidba director Dragutin Pavletic resigned after being arrested with 11 other people in connection with an investigation into financial damage at the 3 Maj shipyard. Last summer, Uljanik Plovidba pointed out that it is completely independent from its former parent group. On 23 July 2018, Dragutin Pavletic resigned from Uljanik Group’s supervisory board in order to avoid the two companies being perceived as linked. Croatian government rejected a $1 billion-plus debt restructuring of Uljanik Group.
9-April-2019
Greek Angelicoussis family company Alpha Bulkers Shipmanagement sold 2000 built capesize bulk carrier 170K DWT MV Alpha Millennium for around $11 million for scrap. The sale price includes 390 tonnes of bunkers onboard. Furthermore, Athens-based shipowner and operator Alpha Bulkers Shipmanagement sold 2000 built capesize bulk carrier 169K DWT MV Marvellous for around $11.5 million for scrap. The sale price includes 500 tonnes of bunkers onboard. Till April 2019, around 2.7 million DWT of capesize bulk carriers has been sold for demolition. Capesizes bulk carriers have been for 35 consecutive days below operating expenses. This is the third-longest loss-making period capesizes bulk carriers have experienced since 2010. Capesize bulk carriers demolition sales have been boosted by strong demand on the Indian subcontinent.
Alpha Bulkers Shipmanagement has renewed its fleet with four (4) kamsarmax bulk carrier new-buildings. Greek shipowner and operator Alpha Bulkers Shipmanagement is controlled by Anna Angelicoussi-Kanellaki and Fragiskos Kanellakis. Alpha Bulkers Shipmanagement sister-company John Angelicoussis-led Maran Dry Management sold 1999 built capesize bulk carrier 172K DWT MV Anangel Destiny for around $9 million for scrap. Additionally, Maran Dry Management sold 1999 built capesize bulk carrier 171K DWT MV Anangel Dynasty for around $9 million for scrap.
9-April-2019
The prominent Australian mining conglomerate, BHP (once recognized as BHP Billiton), is said to be contemplating a reduction in its workforce by as much as 30%. Notably, BHP’s freight division seems to be exempt from these rumored cuts. BHP, the world’s preeminent mining entity, is allegedly poised to eliminate around 700 administrative positions. These prospective cuts will not impinge upon BHP’s core mining operations, but rather target the ancillary departments such as human resources, technology, and commerce. The freight division, responsible for overseeing BHP’s expansive maritime logistics, is regarded as too diminutive to be implicated in this global initiative, as per insiders acquainted with BHP’s strategies. BHP’s commissioned vessels transport in excess of 300 million tonnes of commodities like iron ore, coal, and copper across the globe each year, embarking on over 1,500 journeys. Currently, BHP is refining its operational procedures, eradicating redundancies, minimizing bureaucratic layers, and enhancing its decision-making efficiency. This overhaul commenced a year prior, with the external affairs and finance divisions concluding their transformation the preceding December. It’s noteworthy that BHP is actively engaging with its global workforce to elucidate these impending shifts and foster a more streamlined, agile, and efficient organizational model. Earlier in the year, BHP faced criticism for its choice to terminate the contracts of 80 Australian seafarers employed on two bulk carriers that transported iron ore domestically. These seafarers operated on the Marshall Islands-registered Mariloula and the Maltese-registered Lowlands Brilliance, both affiliated with BHPB Freight, a BHP subsidiary. Their voyages constituted the final Australian-manned routes transporting iron ore from BHP’s Port Hedland facilities to the steel factories in Port Kembla, then conveying coal to China before journeying back to Port Hedland. The utilization of Australian crews for what’s colloquially termed the “golden triangle” was mandated by Australian maritime regulations.
9-April-2019
Greek shipowner and operator Cosmoship Management SA acquired three (3) handysize dry bulk carriers for $27 million in total from Bocimar. Cosmoship Management acquired 2012 built handysize bulk carrier 33K DWT MV CMB Giulia, 2011 built handysize bulk carrier 32K DWT MV CMB Adrien, 2012 built handysize bulk carrier 32K DWT MV CMB Catrine. Belgium shipowner and operator Bocimar has been reducing its exposure to the handysize sector. In 2018, Bocimar sold a dozen such handysize bulk carriers in a ship-exchange deal with Oskar Wehr. After the latest Cosmoship Management transaction, Bocimar left with a single handysize dry bulk carrier 2009 built 29K DWT MV Argenmar Mistral in its fleet. Piraeus-based shipowner and operator Cosmoship Management’s entire bulker fleet consists of handysize bulk carriers and customarily favors ships it has ordered or bought as new-buildings. Nikos Savvas-led shipowner and operator Cosmoship Management’s almost all bulk carriers have been trading with the company since they were new. The last time Cosmoship Management SA acquired a bulk carrier on the secondhand market was in 2017. Cosmoship Management SA should not be confused with Cosmoship Maritime, a separate Athens-based company.
9-April-2019
Hong Kong-listed shipowner and operator Pacific Basin Shipping acquired three (3) more second-hand bulk carriers as the company’s fleet expansion campaign continues. CEO Mats Berglund-led shipowner and operator Pacific Basin Shipping acquired three (3) modern second-hand supramax bulk carriers which are planned to deliver over the next three months. Three (3) modern second-hand supramax bulk carrier acquisitions will boost the Pacific Basin Shipping’s owned fleet to 115 bulk carriers. In the Q1, Pacific Basin Shipping took delivery of two (2) of four (4) bulk carriers the company arranged to acquire last May. Furthermore, a modern supramax Pacific Basin Shipping purchased for cash at the end of 2018. Pacific Basin Shipping concluded the sale of a vintage small handysize bulk carrier. Including chartered ships, Hong Kong-listed shipowner and operator Pacific Basin Shipping operated an average of 220 bulk carriers overall during Q1. Currently, Pacific Basin Shipping has $342 million in cash and eight (8) debt-free bulk carriers. Currently, the gap between handysize and supramax bulk carriers’ newbuilding and secondhand prices remains noteworthy and is discouraging new ship ordering. Pacific Basin Shipping expressed 2019 has started weaker than the last two years with a more pronounced Chinese New Year plunge compounded by the US-China trade war, Chinese regulations on coal imports and iron ore infrastructure troubles in Brazil. In April, Pacific Basin Shipping has secured cover for 36% of its handysize revenue days at around $9,360 per day. Pacific Basin Shipping believes that the longer term fundamentals for handysize segments are positive.
9-April-2019
Wood Resources International (WRI) published that China imports of logs reached another record high in 2018. This is the third sequential year of year-on-year increases. China log import volumes reached around 40 million cubic meters. New Zealand (44%) is a leading supplier of logs to China. Russia’s log export share has fallen to 18% in 2018.
8-April-2019
Ocean Yield, a prominent player in the maritime leasing sector, has recently expanded its fleet through the acquisition of two ultramax bulk carriers from Scorpio Bulkers. The vessels involved in this deal are the 63K DWT MV SBI Libra and MV SBI Virgo, both built in 2017. The transaction, amounting to $42 million en bloc, signifies a strategic diversification for Ocean Yield. Under the terms of the agreement, these vessels will be placed on 11-year bareboat charters back to Scorpio Bulkers. During this charter period, Scorpio Bulkers will retain purchase options starting from the end of the fourth year. Additionally, both Ocean Yield and Scorpio Bulkers have committed to investing up to $3 million each for the installation of scrubbers on the MV SBI Libra and MV SBI Virgo, with delivery to Ocean Yield expected within this quarter. This acquisition marks a significant expansion for Ocean Yield, diversifying its fleet beyond its existing seven handysize bulk carriers. Lars Solbakken, CEO of Ocean Yield, expressed enthusiasm about this opportunity to enhance and diversify the company’s portfolio. Scorpio Bulkers, despite being a new counterparty for Kjell Inge Rokke’s Ocean Yield, has existing leaseback arrangements with Ocean Yield’s sister company, Scorpio Tankers. This deal is part of Scorpio Bulkers’ broader strategy to strengthen its cash position, anticipating a liquidity boost of $17 million upon closing the transaction. Out of this, $14 million will be allocated to debt repayment, with the remainder financing the scrubber installations. Earlier in the year, Scorpio Bulkers engaged in similar sale and leaseback transactions, including a deal with China’s CMB Financial Leasing for seven bulk carriers and a separate agreement for the MV SBI Samba. Ocean Yield has been notably active in sale and leaseback transactions, having recently acquired and leased back a suezmax tanker from Okeanis Eco Tankers. Last year, the company completed leaseback deals with Interlink Maritime and Louis Dreyfus for bulkers, a duo of tankers from Ardmore Shipping, and a set of container ships from CMB. This strategy of acquiring and leasing back vessels is a cornerstone of Ocean Yield’s growth and diversification in the maritime leasing market.
7-April-2019
Nasdaq-listed shipowner and operator Eagle Bulk Shipping (EGLE) has a positive outlook for ultramax and supramax bulk carriers. Notwithstanding the difficulties fallen upon the capesize segment since the Vale dam collapse, Eagle Bulk Shipping (EGLE) is optimistic about ultramax and supramax segment. Currently, ultramax and supramax bulk carrier charter rates have rebounded to around $9,000 per day. However, capesize bulk carrier charter rates are around $4,400 per day. Eagle Bulk Shipping (EGLE) has been constructive, particularly as Eagle Bulk Shipping (EGLE) looks toward IMO (International Maritime Organization) 2020 regulations. Eagle Bulk Shipping (EGLE) intends to install 34 scrubbers on its fleet by IMO (International Maritime Organization) 2020 regulations. Eagle Bulk Shipping (EGLE) wants to take advantage of an anticipated wide-cost spread between high-sulfur and low-sulfur bunkers. Currently, New York-listed shipowner and operator Eagle Bulk Shipping (EGLE) owns and operates 30 supramax bulk carriers and 16 ultramax bulk carriers.
7-April-2019
German ship financing bank Nord/LB withdraws from the maritime sector. German shipping lender Nord/LB is pulling out of ship financing as it looks to restructure with a capital injection of $4 billion. Nord/LB is taking an enormous hit on the remaining $11 billion maritime books. Nord/LB expects a refinancing deal with the German Savings Banks Association (DSGV). Nord/LB has been dropping NPL (Non-Performing Loans) in shipping at a quick rate and has taken tremendous provisions on the maritime book in recent years. Nord/LB will completely withdraw from ship financing and will focus on energy, infrastructure, property, and aircraft.
6-April-2019
German shipowner and operator Aug Bolten joins MPC Capital’s bulker technical management joint venture Ahrenkiel Vogemann Bulk (AVB). Merger will be expanded Ahrenkiel Vogemann Bulk (AVB)’s market position significantly. After accession of Aug Bolten, the company is renamed as AVB Ahrenkiel Vogemann Bolte. A new joint venture will manage 17 dry bulk carriers with an average age of 6 years. AVB Ahrenkiel Vogemann Bolte will focus management of the handysize segment and two (2) new-buildings under construction. AVB Ahrenkiel Vogemann Bolte’s partners are open for further growth with potentially additional partners. Ahrenkiel Vogemann Bulk (AVB) was established in 2016 and offers management services to third parties. German MPC Capital joined forces with compatriot Reederei H Vogemann. In the beginning, the company was focusing on the management of supramax and pamanax bulk carriers and the fleet included three ships from Hamburg’s KG Reederei Roth.
6-April-2019
One of the world’s largest supramax bulk carrier operators Western Bulk Chartering (WBC) has moved to strengthen its balance sheet by raising fresh equity to meet an imminent bond repayment, with Norwegian bulker operator Western Bulk Chartering (WBC) securing a new tranche of funding specifically targeted at clearing the remaining liability under the company’s $31 million bond. Western Bulk Chartering (WBC) is preparing to use the proceeds to repay the outstanding balance, and the plan calls for $15 million of equity to be raised with the commitment underwritten by Western Bulk Chartering (WBC)’s two major shareholders, Kistefos and Ojada, underscoring continued sponsor backing at a moment when liquidity and covenant confidence matter. Oslo-based bulker operator Western Bulk Chartering (WBC) is expected to repay the $28 million outstanding portion of the bond, which is due to mature this month, and Western Bulk Chartering (WBC) has positioned the refinancing step as a way to stabilise funding, improve financial resilience, and create a more robust platform to support growth rather than allowing a near-term maturity wall to constrain commercial activity. Chief Executive Officer Jens Ismar described the transaction as an extremely reasonable solution for Western Bulk Chartering (WBC), highlighting that Western Bulk Chartering (WBC) benefits from clear support by its major shareholders, a factor that can be decisive for counterparties, owners, and lenders when assessing credit risk in volatile freight markets. The funding move also fits Western Bulk Chartering (WBC)’s broader operating identity as a high-activity chartering house whose business model has historically been weighted toward short-term commitments, where Western Bulk Chartering (WBC) aims to stay nimble across cycles, adjust exposure quickly, and use freight market volatility to generate margins through timing, positioning, and spread capture rather than relying solely on long-duration fixed income streams. Western Bulk Chartering (WBC) has argued that this approach allows Western Bulk Chartering (WBC) to turn volatility into opportunity, searching for arbitrage situations across routes, cargo programs, and regional imbalances, while using market data and operational execution to keep ships employed and reduce ballast inefficiency. Western Bulk Chartering (WBC) said it is aiming for improved results in 2019, but Western Bulk Chartering (WBC) has also emphasised caution after a disappointing Q4 2018, and Norwegian bulker operator Western Bulk Chartering (WBC) has repositioned its tonnage portfolio to reflect a lower dry bulk market environment, focusing on the mix of ships, trading patterns, and exposure profile that best fits prevailing rate conditions. Oslo-based Western Bulk Chartering (WBC) is associated with operating scale, with Western Bulk Chartering (WBC) operating around 150 bulk carriers per year, a level of activity that supports strong market visibility and provides Western Bulk Chartering (WBC) with continuous flow of pricing signals on freight, ship supply, port dynamics, and cargo demand across bulk carrier segments. Western Bulk Chartering (WBC) has stated that it seeks to exploit volatility to capture arbitrage opportunities, and Western Bulk Chartering (WBC) also pointed to preparations around the IMO (International Maritime Organization) 2020 sulfur cap as a potential catalyst for market dislocation and opportunity in H2 2019, as owners and charterers reprice ships based on fuel economics, scrubber positioning, and compliance-related trading decisions. Alongside commercial positioning, Western Bulk Chartering (WBC) has also invested in operational capability and technology, and in 2018 Western Bulk Chartering (WBC) invested in new cloud-based software systems, with Oslo-listed bulker operator Western Bulk Chartering (WBC) upgrading to a cloud-based voyage management system and a group email system, initiatives designed to improve voyage execution, reporting speed, coordination, and decision-making across a fast-moving chartering environment. Western Bulk Chartering (WBC) has signalled further investment in technology covering both chartering and operations, aligning with a strategy where faster data capture, improved voyage management, and tighter operational control can translate directly into better net earnings through reduced voyage costs and improved fixture timing. The corporate backdrop also remains relevant: in 2016, Western Bulk Shipholding (WBS) sold its profitable Western Bulk Chartering (WBC) arm and the Western Bulk trademark to Christen Sveaas-controlled Kistefos Equity, and the continuing involvement of Kistefos as a major shareholder in Western Bulk Chartering (WBC) reinforces the long-running sponsor relationship that now underpins the equity raise and the bond repayment plan. Taken together, the guaranteed equity injection, the planned retirement of the maturing bond, and the emphasis on short-term trading agility illustrate how Western Bulk Chartering (WBC) is combining shareholder support with an asset-light commercial model to reinforce its financial footing while positioning Western Bulk Chartering (WBC) to pursue opportunities created by freight market dislocation, regulatory change, and shifting dry bulk trade patterns.
5-April-2019
Tokyo Stock Exchange-listed shipowner and operator K Line (Kawasaki Kisen Kaisha) has embarked on a review of the shipowner’s operations on the company’s 100th anniversary. Tokyo-based shipowner and operator K Line (Kawasaki Kisen Kaisha) will concentrate on bulk, tankers, and gas, car carrier sectors. Previously, Japanese shipowner and operator K Line (Kawasaki Kisen Kaisha) spin-off of container operations into the ONE joint venture with compatriots MOL and NYK. K Line’s (Kawasaki Kisen Kaisha) mixed fleets and enterprise risks will be evaluated systematically by market performance. K Line (Kawasaki Kisen Kaisha) appointed Yukikazu Myochin as the new CEO. Yukikazu Myochin took over the top position on 1 April 2019, as Eizo Murakami became chairman. Japanese shipowner and operator K Line (Kawasaki Kisen Kaisha) expressed sincere gratitude to all the stakeholders including clients, partners, and shareholders who have given their endless support to the company for 100 years. Furthermore, K Line (Kawasaki Kisen Kaisha) announced strategies to cut the company’s chartered fleet to increase earnings.
4-April-2019
Singapore-based shipowner and operator Eastern Pacific Shipping (EPS) put the company’s supramax fleet in CTM Pool (C Transport Maritime Pool). Idan Ofer-led Eastern Pacific Shipping (EPS) controlled supramax bulk carriers joined the RSA (Supramax Revenue Sharing Agreement). In 2017, Eastern Pacific Shipping (EPS) joined the RSA (Supramax Revenue Sharing Agreement) with one ship. Afterward, Eastern Pacific Shipping (EPS) added four (4) supramax bulk carriers to the RSA (Supramax Revenue Sharing Agreement). CTM Pool (C Transport Maritime Pool) stated the return of the Eastern Pacific Shipping (EPS) emphasized the core strengths of the RSA (Supramax Revenue Sharing Agreement), which is its flexibility. CTM Pool (C Transport Maritime Pool) controlled the RSA (Supramax Revenue Sharing Agreement) has no minimum period and just a three-month exit notice, plus no withdrawal fees and zero day-to-day management expenses. RSA (Supramax Revenue Sharing Agreement) only charges a 1.25% commission. Currently, CTM Pool (C Transport Maritime Pool) controlled RSA (Supramax Revenue Sharing Agreement) has 17 members with 65 bulk carriers. Eastern Pacific Shipping (EPS) bulk carriers are commercially managed by Idan Ofer-led Eastern Pacific Chartering (EPC).
3-April-2019
In 2018, despite some improvements, Grieg Star of Norway reported another loss. The parent company, Grieg Group, however, saw an increase in its overall net profit, reaching $80 million compared to the previous $54.19 million. This was on the back of revenues amounting to approximately $1.15 billion, a slight decrease from about $1.17 billion in 2017. Overall, 2018 was a positive year for the Grieg Group, marked by growth in turnover across all segments. The shipping sector witnessed improved market conditions and greater synergies from the G2 Ocean joint venture, leading to enhanced earnings for the bulker division, Grieg Star. However, this division still faced a pre-tax deficit as the recovery in the open-hatch market continued at a slow pace. G2 Ocean has now become the world’s largest open-hatch shipping company. After hitting a low in 2016, conventional dry bulk operations bounced back to profitability. There was also an uptick in earnings for open-hatch operations, spurred by renewing several cargo contracts. During the year, the company divested its break bulk terminal in Squamish, Canada. Grieg Shipbrokers’ operations performed well in 2018, despite challenging market conditions. This was the first full year of operation for its subsidiaries in Hong Kong, Shanghai, and Singapore, which concentrated on chartering large bulk carriers. Particularly, the offshore department made significant strides in contracting, long-term chartering, and the buying and selling of service vessels for the aquaculture industry. Although there’s increasing activity in offshore service vessels, the prices achieved remain low. Looking forward, the group acknowledges the continued uncertainty in the shipping market, influenced by disrupted iron ore supply and Chinese restrictions on coal imports. Efforts are ongoing to enhance freight earnings and cut costs. The company expects a steady growth in world seaborne pulp demand from America to Asia and anticipates a moderate rate scenario in open-hatch going forward. The newly formed joint venture, Grieg Maas, with Maas Capital at the end of 2018, is set to become the group’s primary platform for dry bulk ship owning.
3-April-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers and Germany based ER Capital abandon $115 million worth four (4) capesize bulk carrier deal. Capeize bulk carriers price tags have noticeably fell since the mid of 2018. Star Bulk Carriers and Germany based ER Capital have mutually agreed to waive options on:
- MV ER America (180K DWT built 2010)
- MV ER Bayonne (180K DWT built 2010)
- MV ER Borneo (180K DWT built 2010)
- MV ER Buenos Aires (180K DWT built 2010)
3-April-2019
In the aftermath of the Brumadinho dam collapse, which resulted in numerous fatalities and significant disruptions to global trade, Vale has seen the temporary resignation of its CEO, Fabio Schvartsman. This incident underscores the ongoing challenges within the dry bulk shipping sector, which faces a prolonged period of market depression, potentially extending over a decade, even as Vale’s iron ore export volumes might recover and US-China trade tensions may ease. The return of spring in the Northern Hemisphere brings renewed discussions among dry bulk shipowners about the Baltic Dry Index, with sentiments varying from optimism to frustration. Shipowners, whether privately owned or state-operated, express dissatisfaction with the current market rewards, highlighting the crucial role of ocean shipping in global trade. The sector’s disappointment is amplified by a series of impediments including trade wars, extreme weather events, and the catastrophic impact of the Vale dam failure, all of which contribute to the depressed spot market despite a strong demand outlook. Shipowners argue that their fleet adjustments last year were prudent and did not contribute to the current market downturn, feeling unjustly penalized by the market’s irrationality. Some speculate that the Vale disaster’s impact is being exaggerated by charterers or speculators to manipulate earnings. However, the reality suggests that the dry bulk market’s challenges are deeply rooted in systemic issues, including a surplus of tonnage from ships delivered between 2010 and 2013, which will continue to affect the market for the foreseeable future. The problem is further compounded by a common bias among shipowners to focus on positive developments, leading to overordering of vessels. This tendency towards optimism has resulted in a tonnage surplus that is unlikely to be resolved until the current fleet ages out of the market. According to Liu Xunliang of the China Newbuilding Price Index, a meaningful recovery in the dry bulk sector is contingent upon the exit of this excess tonnage, potentially aligning with a future economic upturn. Until then, the industry must navigate through a prolonged period of adjustment and recalibration.
2-April-2019
Oslo Stock Exchange-listed Norwegian shipowner and operator Belships has executed its inaugural acquisition after its merger with Lighthouse Navigation. This acquisition was the procurement of a sophisticated geared supramax bulk carrier. The transaction was sealed for the 58,700 DWT supramax bulk carrier at an elegant sum of $13 million, a deal orchestrated with the illustrious Wenaas Group of Norway. Although Belships has opted for discretion regarding the ship's moniker, indications point towards MV Viola, crafted in 2008, being the sole vessel fully possessed by Wenaas Group. Half of the purchase's financial obligation shall be settled in liquid assets, while the remainder shall be arranged through the allotment of Belships' equity. The monetary commitment will utilize resources from the substantial $140 million financing that Belships garnered from a coalition of Scandinavian financiers in the heart of March. Foreseeing fleet augmentation, Belships has prudently allocated a fraction of this newfound financial reservoir. Guiding this venture is the newly appointed chief executive, Lars Christian Skarsgard, who graced Belships with his presence on 15 March, having previously held a prestigious role at Fearnleys as the overseer of sales and procurement. The newly annexed MV Viola, an exquisite creation from Tsuneishi Heavy Industries in the Philippines, is anticipated to join the Belships' fleet in this year's second quarter. With the transaction of MV Viola, Wenaas Group elegantly strides closer to a graceful departure from ship proprietorship, while Belships exhibits a fervent desire to augment its maritime collection. The Wenaas Group, with its eclectic investment ensemble ranging from luxurious hotels to alpine ski sanctuaries and equities, jointly possesses their two remaining bulk carriers, the 75,700 DWT MV Ogna and MV Goya, with the distinguished JL Mowinckels Rederi of Bergen. Interestingly, the Panamax bulk carrier MV Ogna was showcased for sale in March 2018, yet remained unacquired due to preliminary offers failing to satisfy the shipowner's aspirations. Upon MV Viola's integration, Belships' fleet shall comprise an impressive 16 supramax and ultramax bulk carriers. Additionally, the company anticipates the addition of an ultramax bulk carrier, a creation from Japan's renowned Imabari shipyard, in the inaugural half of 2020.
2-April-2019
New York-listed shipowner and operator Safe Bulkers (SB) stays optimistic for Q3 2019. Capesize rates have been decreased to $3,460 per day due to the Vale dam disaster. Vale dam disaster took 40 million tonnes off the dry bulk market. Limassol and Athens-based Safe Bulkers (SB) estimate the dry bulk market will be a bit challenging on the large bulk carriers. Polys Hajioannou-led shipowner and operator Safe Bulkers (SB) believes that bulk carrier charter rates should recover soon. New York-listed shipowner and operator Safe Bulkers (SB) assumes that more promising economic indices are coming out of China. Furthermore, Safe Bulkers (SB) believes the US-China trade war will come to an end. Safe Bulkers (SB) guesses the supply and demand are eventually balanced. Currently, New York-listed shipowner and operator Safe Bulkers (SB)has a fleet of 14 panamax bulk carriers, 10 kamsarmax bulk carriers, 13 post-panamax bulk carriers, and 4 capesize bulk carriers.
2-April-2019
A prominent Chinese shipowner has expressed optimism about the dry bulk market’s recovery, anticipating that Brazilian miner Vale will rebound from the setbacks caused by the Brumadinho dam disaster and subsequent mine closures. The unnamed state-owned company suggests that the market’s negative reaction has been disproportionate to the actual impact on export volumes and expects a resurgence as Brazilian exports increase throughout the year. Despite uncertainties about the extent of production cuts, Vale’s contractual obligations and penalties for failing to meet volume commitments make them hesitant to offer cargoes on the spot market. However, industry players believe Vale will compensate for lost production with alternative sources in the latter half of the year, fueling optimism for a dry bulk shipping market recovery. Contrastingly, the China Newbuilding Price Index views the dam disaster not as the sole cause but as a trigger for a long-term downturn in the dry bulk sector, driven by an oversupply of shipping capacity, potentially lasting over a decade. Despite this, the Chinese shipowner notes that Vale has made strides in recovering production volumes, especially with the court-approved reopening of the Brucutu mine, contributing to a less severe production downturn than initially feared. The expected increase in iron ore exports from Brazil, bolstered by Vale and Anglo American’s contributions, promises real growth in export volumes. Additionally, the expansion of Vale’s S11D project in northern Brazil is anticipated to significantly boost iron ore exports, further supporting market recovery expectations. The Chinese shipowner also points to the potential for increased spot market volumes, even considering the addition of new Valemax vessels, suggesting that there remains scope for growth in iron ore shipments. Independent Brazilian mines could also supplement Vale’s supply, integrating seamlessly into its transportation network. However, Vale’s own projections are more conservative, estimating a best-case disruption of 50 million tonnes and a worst-case scenario of up to 75 million tonnes of ore production. The company also indicated that reactivating idle capacity could take up to three years. Recent concerns over Vale’s tailings dams may further complicate mine reopenings, casting a shadow over the optimistic outlook presented by the Chinese shipowner.
1-April-2019
Minnesota-headquartered trading giant Cargill’s shipping arm Cargill Ocean Transportation has reported a drag on the company’s earnings from the gloomy Vale dam disaster in Brazil in January. The Vale dam disaster in Brazil killed at least 206 people. The Vale dam disaster in Brazil provoked iron ore futures prices in China to increase sharply and capesize bulk carrier freight rates to plunge enormously. Chartering giant Cargill Ocean Transportation communicated that the shipping rates commenced strengthening by quarter-end, but concerns about a downshift in international growth resumed to weigh on shipping markets. Cargill Ocean Transportation’s teams captured greater efficiencies across the company. Cargill Ocean Transportation has concentrated on growth goals. One of the world’s biggest ship operators Cargill Ocean Transportation reported net earnings of $566 million for the quarter. Cargill Ocean Transportation reported revenue of $26.9 billion for the quarter.
1-April-2019
The 52K DWT supramax bulk carrier MV Vigorous, loaded with wheat intended for Yemen, has finally been released from its arrest after being anchored on the Columbia River for over three months. The vessel, associated with Greek shipping tycoons George Gourdomichalis and Stathis Gourdomichalis, was embroiled in a lengthy legal battle that reached the federal courts in Portland, Oregon, late last year. Vigorous Shipping & Trading, the ship’s registered owner, along with plaintiff Pacific Gulf Shipping Co., have reached an agreement on a $9.5 million substitute bond for the bulker, which was initially seized in early December to secure a $22.6 million arbitration award. The bond, financed through a loan, was officially posted on March 20. On the same day, Vigorous Shipping & Trading notified the court of its intent to appeal the decision made on February 19, which denied their motion to require a bond for the ongoing attachment of the ship. This motion, like most filings since mid-December, is under a protective order, with court records only indicating the denial. The MV Vigorous was detained on December 3 after Danish firm Pacific Gulf Shipping Co. filed a lawsuit against several companies linked to the Gourdomichalis brothers, including Blue Wall Shipping and Phoenix Shipping & Trading, in an effort to collect on the arbitration award from the abandonment of the panamax bulk carrier 73K DWT MV Adamastos in 2014. The MV Adamastos, which had been chartered by Pacific Gulf Shipping Co., experienced a series of issues leading to its detainment off Brazil after an inspection revealed 42 deficiencies, and subsequently breaking free from its moorings and running aground. The legal actions by Pacific Gulf Shipping Co., which also attempted to seize the MV Vigorous in South Africa, argue that George and Stathis Gourdomichalis operate several legal entities as extensions of themselves to manage the sizable arbitration award. However, attorneys for Vigorous Shipping & Trading contend that the lawsuit merely portrays standard operations typical of a shipping company.
1-April-2019
Nasdaq-listed Greek shipowner and operator Seanergy Maritime’s (SHIP) CEO Stamatis Tsantanis observes a phenomenal capesize buying opportunity in the dry bulk market. According to Seanergy Maritime (SHIP), capesize charter rates should recover in the Q2 2019. BCI (Baltic Capesize Index) has plunged to 122 points since the 25 January Vale’s dam collapse. According to Seanergy Maritime (SHIP), it’s an incredible buying opportunity for the capesize bulk carriers. Currently, the price tag for a five-year-old capesize bulker is around $36 million. Seanergy Maritime (SHIP) anticipates the US-China trade relations should improve soon. Seanergy Maritime (SHIP) is highly optimistic about the dry bulk market.
1-April-2019
Dubai-based Shaikh-family-controlled shipowner and operator Tomini Shipping is advancing discussions for leasing structures with China leasing companies, targeting roughly $100 million of funding to cover six (6) bulk carrier newbuildings and reinforcing how UAE-based shipowner and operator Tomini Shipping continues to use leasing as a core tool for fleet growth. UAE-based shipowner and operator Tomini Shipping has six (6) dry bulk carriers on order at Chinese shipyards, and Tomini Shipping has already shown a willingness to route ship finance through China-based leasing platforms, using those arrangements to support expansion while keeping capital allocation flexible. In earlier financings, the six (6) dry bulk carriers on order at Chinese shipyards were initially backed by a United Arab Emirates bank, but Tomini Shipping later transferred the financing to a China leasing company, a shift that highlights Tomini Shipping’s ability to refinance when conditions and counterparties offer better commercial outcomes. Tomini Shipping has emphasized that many Chinese leasing corporations operate with a highly commercial mindset and move extremely fast, and UAE-based shipowner and operator Tomini Shipping has described its ship finance transaction with a Chinese leasing company as smoothly managed, suggesting that Tomini Shipping values speed of execution and transaction certainty when structuring fleet funding. The ownership framework behind these decisions remains tightly controlled: UAE-based shipowner and operator Tomini Shipping’s principal shareholders are its chairman, Imtiaz Shaikh, and the Imtiaz Shaikh family, and Tomini Shipping traces its roots to being formed as the shipping arm of the Shaikh family’s Pakistan-based cotton trading business. Over time, UAE-based Shaikh-family controlled shipowner and operator Tomini Shipping has concentrated exclusively on the dry bulk sector, aligning fleet decisions and financing choices around a single segment rather than diversifying into unrelated ship types. At the time referenced, Tomini Shipping operated a fleet of seven (7) supramax and one (1) ultramax bulk carrier, giving Tomini Shipping a core trading footprint in ship sizes that are widely employable across minor bulks and mainstream commodity routes, while the six (6) bulk carrier newbuildings on order indicate that Tomini Shipping is actively scaling the platform with additional modern capacity. Dubai-based Tomini Shipping’s chartering activities are performed by Alpina Chartering in Denmark, and the combination of an established chartering interface with aggressive lease-backed growth supports Tomini Shipping’s ability to add tonnage while keeping commercial execution, charterer coverage, and voyage planning aligned with market opportunities. By pursuing China leasing funding for the six (6) bulk carrier newbuildings, Dubai-based Shaikh-family-controlled shipowner and operator Tomini Shipping is effectively pairing Chinese shipyard supply with Chinese capital, a structure that can streamline delivery-linked financing and reduce friction during construction and handover. Taken together, the leasing talks, the existing track record of refinancing from a United Arab Emirates bank to a China leasing company, the Shaikh-family ownership under Imtiaz Shaikh, the exclusive dry bulk focus, the operating fleet of seven (7) supramax and one (1) ultramax bulk carrier, and the chartering setup through Alpina Chartering in Denmark all point to a consistent Tomini Shipping playbook: grow the fleet through repeatable financing channels, secure modern ships on order, and maintain a commercial framework designed to keep Tomini Shipping competitive and scalable in the dry bulk market.
1-April-2019
Taiwanese shipowner and operator Wisdom Marine Lines Co Ltd has disclosed plans to raise around $71 million from the sale of bonds and new shares for fleet expansion, installation of BWTS (ballast water treatment systems), and debt repayments. Taiwan Stock Exchange-listed shipowner and operator Wisdom Marine Lines Co Ltd offers to sell up to 80 million new shares. Chun-Sheng Lan-led shipowner and operator Wisdom Marine Lines Co Ltd has not included scrubbers in the latest new building ship contracts but Wisdom Marine Lines Co Ltd might consider installing scrubbers at a later stage. Separately, Wisdom Marine Lines Co Ltd’s BOD (Board of Directors) has approved a plan to raise $45 million via sales of secured bonds in the Taiwan Stock Exchange for installing BWTS (ballast water treatment systems) on the company’s existing fleet and repaying debt. The five-year bonds will be attached with an annual interest rate of 0.86%. Taiwan Cooperative Securities will be the underwriter for Wisdom Marine Lines Co Ltd’s bonds. Wisdom Marine Lines Co Ltd reported a net profit of $60 million on operating revenues of $433 million in 2018. Currently, Taiwan Stock Exchange-listed shipowner and operator Wisdom Marine Lines Co Ltd has a fleet of 131 bulk carriers. Furthermore, Wisdom Group’s subsidiary company Wisdom Marine Lines Co Ltd has 14 bulk carrier new building orders in China and Japan. Wisdom Marine Lines Co Ltd is the world’s third largest shipowner of handysize bulk carriers by the number of vessels.