29-May-2019
Norwegian shipowner and operator JJ Ugland’s subsidiary, Ugland Bulk Shipping AS, is actively pursuing strategies to secure more of its supramax bulk carriers on both short and long-term period charters. The privately owned Norwegian company, which boasts a fleet of nearly 50 bulk carriers, also highlighted that its 58K DWT supramax bulk carrier MV Lunita, constructed in 2014, has been chartered out until 2023 following an off-market transaction last autumn. Additionally, the ultramax bulk carrier 63K DWT MV Jorita, built in 2019 and delivered to JJ Ugland’s subsidiary Ugland Bulk Shipping AS in January, is currently engaged at an index-linked rate until mid-2021. Knut Nikolai Ugland, who took over the leadership of JJ Ugland after his grandfather Johan Jorgen Ugland passed away in 2010, is poised to assume control of the broader JJ Ugland Group when he reaches 35. Notably, Knut Nikolai Ugland spent a year working at the German bulker behemoth Oldendorff Carriers last year. The principal entity under him, Uglands Rederi, operates a fleet that includes 16 trading supramax bulk carriers and has two ultramax bulk carriers on order in Japan. Uglands Rederi recently reported a pre-tax profit of $4.6 million for the previous year. Additionally, JJ Ugland owns the Nymo shipyard, which experienced a significant improvement in performance last year.
28-May-2019
Athens-based shipowner and operator Alma Maritime Ltd. sold 2003 built capesize bulk carrier 176K DWT MV Iron Fritz for around $12 million. MV Iron Fritz passed SS (special survey) in February 2018. Stamatis Molaris-led shipowner and operator Alma Maritime Ltd. acquired 2003 built capesize bulk carrier 176K DWT MV Iron Fritz (ex MV Houheng Sunrise) in November 2011 from Henghou Industrial Investment in November 2011. Alma Maritime Ltd. was established in 2008. Furthermore, Stamatis Molaris controls sister tanker company Empire Navigation. In September 2017, Greek shipowner and operator Alma Maritime Ltd. sold 2017 built capesize bulk carrier 181K DWT MV Cape Claudine for around $30 million. Currently, Greek shipowner and operator Alma Maritime Ltd. owns and operates four (4) capesize bulk carriers and four (4) suezmax tankers.
28-May-2019
Athens-based, New York-listed shipowner Diana Shipping (DSX) is ensuring that all shareholders participating in its buyback offer receive an equitable deal, especially given the oversubscription of shares. While the Greek shipowner and operator Diana Shipping (DSX) had 5.9 million shares offered for resale, they aimed to buy back only up to 3.1 million units. To ensure fairness, Diana Shipping (DSX) is prorating its buyback. This means that instead of buying back all the shares from a few shareholders and leaving others out, they will repurchase a particular percentage from each tendering shareholder. This approach guarantees that every participant can sell at least a portion of their shares. The repurchased shares are priced at $3.40 each, leading to a cumulative repurchase value of $10.6 million. Initially, on 15 April, the buyback was proposed at $3.20 per share with a cutoff date of 13 May. However, Diana Shipping (DSX) later extended the deadline and increased the share price offer by $0.20.
28-May-2019
New York-listed shipowner and operator Safe Bulkers (SB) reported a profit of $5.4 million in Q1 2019. Contract coverage on its fleet helped shield Safe Bulkers (SB) from a depressed freight market. Safe Bulkers (SB) reported a profit of $0.03 per share in Q1 2019. Limassol and Athens-based Safe Bulkers (SB) had commenced 2019 in profit despite the weakness of the charter market amid the US-China trade-war problems, disturbance of trade practices due to the Vale dam disaster, and seasonality. Polys Hajioannou-led shipowner and operator Safe Bulkers’ (SB) fleet has shorter-term charter coverage. Greek-Cypriot shipowner and operator Safe Bulkers (SB) will be installing scrubbers in about half of the company’s fleet during 2019.
28-May-2019
Eyal Ofer-led London-based Zodiac Maritime Ltd. stepped back into the capesize S&P arena in 2019, returning to second-hand dry cargo tonnage after more than six months on the sidelines and signalling a renewed willingness by London-based Zodiac Maritime Ltd. to lean into cyclical weakness when asset values soften. Market talk at the time indicated that Eyal Ofer-led London-based Zodiac Maritime Ltd. viewed the pullback in bulker pricing as an opening to rebuild exposure at discounted levels, consistent with the broader owner-operator approach that London-based Zodiac Maritime Ltd. is known for across multiple shipping segments, where timing, liquidity, and optionality matter as much as headline freight rates. The transaction centred on the 2004-built VLOC (Very Large Ore Carrier) 233K DWT MV Pacific Glory, a heavyweight dry cargo ship positioned for long-haul iron ore trades, and Mitsui OSK Lines, the Japanese conglomerate, is reported to have sold MV Pacific Glory to Zodiac Maritime Ltd. for around $14.5 million, a figure widely seen as reflecting depressed market conditions and cautious sentiment in capesize bulk carrier pricing at that stage of the cycle. Eyal Ofer-led London-based Zodiac Maritime Ltd., described by brokers as a diversified shipping enterprise with the ability to shift capital between tankers and dry cargo when relative value changes, was also linked with an established capesize platform, with market sources stating that Zodiac Maritime Ltd. at that point controlled a fleet of 25 capesize bulk carriers, including six (6) ore carriers, and with four (4) of those ore carriers delivered before 2000, highlighting how London-based Zodiac Maritime Ltd. combined modern and older tonnage while actively reviewing where renewal, disposals, and opportunistic purchases could improve the overall risk profile. The MV Pacific Glory deal also arrived after a period in which Zodiac Maritime Ltd. had directed a meaningful share of attention toward tankers, and in 2018 Zodiac Maritime Ltd. focused on augmenting and replenishing its tanker fleet with six modern assets acquired from the former Toisa fleet while also expanding its VLCC (Very Large Crude Carrier) footprint, moves that underlined how Eyal Ofer-led London-based Zodiac Maritime Ltd. balances exposure across freight markets rather than depending on a single segment. Within the dry cargo portfolio, the most recent comparable large bulker purchase by London-based Zodiac Maritime Ltd. before MV Pacific Glory was in November 2018, when Zodiac Maritime Ltd. acquired capesize bulk carrier 180K DWT MV Frontier Ambition for around $29 million, and the contrast between that higher level and the later $14.5 million headline for MV Pacific Glory reinforced the degree to which secondhand pricing had moved, encouraging London-based Zodiac Maritime Ltd. to reconsider entry points. Notably, Zodiac Maritime Ltd. had also demonstrated a willingness to monetise positions when values recovered, and in 2018 Zodiac Maritime Ltd. divested some tonnage it had acquired in the previous down-cycle and reportedly generated profits on those exits, including two capesize bulk carriers purchased from Scorpio Bulkers during the market low in 2016 and later transferred as part of a broader transaction with the New York-listed Genco Shipping & Trading, illustrating how London-based Zodiac Maritime Ltd. uses asset recycling to release capital, crystallise gains, and refresh the fleet mix. The backdrop to these decisions was a choppy start to 2019 for capesize bulk carrier activity, as uncertainty around steel values and raw materials demand weighed on sentiment following a dam collapse in Brazil, an event that disrupted confidence and contributed to a sharp fall in rates during the first quarter, with capesize bulk carrier sale and purchase momentum sliding accordingly even as selective buyers such as Eyal Ofer-led London-based Zodiac Maritime Ltd. looked for value in well-priced second-hand ships.
27-May-2019
Angeliki Frangou, the CEO of Athens-based Navios Maritime Holdings, has highlighted the significant cash flow potential of the company’s bulker fleet. During a recent conference call, Frangou detailed the operational outlook for the remaining nine months of 2019, revealing that out of 14,359 available days for the company’s ships, approximately 57% or 8,201 days are exposed to market fluctuations. She pointed out that with the current combined charter rate of $12,945 per day, the fleet is anticipated to generate $17.5 million in free cash flow. Moreover, Frangou added that an increase to the 20-year average rate could potentially yield around $91 million in additional revenue, with every $1,000 increase in charter rates expected to bring in an extra $8 million. Navios Maritime Holdings has set its daily revenue projection for the upcoming nine months at $12,601, having secured 42.9% of its available days at an average rate of $11,095. Frangou also mentioned the potential for revenue growth from dividends of affiliated companies and the impact of these dividends on days open to market rates. Highlighting the company’s financial stability, Frangou underscored a strong liquidity position, with net debt-to-book capitalization at 72.1% and a cash reserve of $129.4 million as of March 31. She reassured stakeholders by noting the absence of significant committed capital expenditures for shipping growth or material debt maturities until 2022, emphasizing the company’s strategic financial planning. Despite a net loss of $3.61 million in the first quarter, which is a significant improvement from the $41.23 million loss in 2018, the company’s revenue has seen a growth, reaching $140.28 million up from $116.88 million. Additionally, Navios Maritime Holdings reported that its subsidiary, Navios South American Logistics, has actively managed its debt by purchasing $35.5 million of its outstanding 7.375% priority ship mortgage notes due 2022 for $17.6 million. Furthermore, Navios Maritime Holdings has secured a $50 million credit facility with Navios Logistics for general corporate purposes, including potential note repurchases. This loan is structured with a fixed interest rate of 12.75% for the first year, escalating to 14.75% for the second year, and is set to mature in April 2021.
27-May-2019
The maritime firm S’hail Shipping and Maritime Services, headquartered in Qatar, has expanded its fleet with the acquisition of two panamax bulk carriers in a transaction valued at approximately $20 million. The vessels, renamed as the 76K DWT MV S’hail Al Rayan and the 74K DWT MV S’hail Al Dukhan, are scheduled to be incorporated into the fleet in June 2019, elevating S’hail Shipping and Maritime Services’ total to seven bulk carriers. This expansion is part of S’hail Shipping and Maritime Services’ strategy to augment its capability in transporting bulk cargoes. In April 2018, the Qatar Development Bank (QDB) agreed to provide a financing facility of QAR 70 million to support S’hail Shipping and Maritime Services’ initiative to acquire additional bulk carriers, aiming to achieve its expansion goal. Following this, in October 2018, S’hail Shipping and Maritime Services announced a decision to increase its share capital to facilitate the purchase of at least two more bulk carriers. The bulk carriers managed by S’hail Shipping and Maritime Services are primarily engaged in transporting gabbro, a type of rock often used in construction for buildings, roads, bridges, and other infrastructural projects. Established in December 2016, S’hail Shipping and Maritime Services has made significant strides in the maritime industry, with a focus on bolstering its fleet to meet the increasing demands of the construction and infrastructure sectors in Qatar and beyond.
26-May-2019
Many concur that Norway's maritime sphere presently stands unparalleled in numerous domains, encompassing maritime finance and avant-garde technical innovations. Nonetheless, a burgeoning sentiment prevails that this fraternity is diminishing its significance, notably as a domicile for prominent maritime magnates, especially as several ancestral maritime lineages have vanished into obscurity. In this tapestry, the Oslo Stock Exchange’s stalwart, Belships, emerges as a rejuvenating gust. This venerable entity has graced the primary list of the exchange since an era predating World War II, yet for countless decades, its equities remained virtually moribund, evincing scant trading vigor. Post its recent amalgamation with Frode Teigen's Lighthouse Navigation, Belships witnessed its fleet size burgeon to nearly 20 bulk carriers. With an unequivocal aspiration to flourish, assert its prominent position on the stock market, and remunerate shareholders, Belships traces its origins to 1918. It was then that the visionary seafarer, Christen Smith, beckoned investors to partake in the maritime venture, Skibaktieselskabet Christen Smiths Rederi. Yet, destiny’s caprices nearly led to the venture’s premature demise, as Belships' fledgling fleet grappled with formidable challenges. Smith's ingenuity led him to a groundbreaking shipping paradigm tailored for the rail industry, which, for decades, became Belships' lifeline. The enterprise became publicly traded in 1937, with the Lorentzen siblings - Axel, Frithjof, and Jorgen - emerging as pivotal stakeholders, thereby steering the company's destiny. Their progeny and their descendants would wield the reins of Belships for a span surpassing eight decades. Sverre Tidemand, a scion of the family’s third generation and a venerable age of 68, retains an esteemed position on the board and holds a significant shareholding. The previous annum heralded a monumental juncture for Belships as it coalesced with Lighthouse Navigation, augmenting its fleet in the process. As a consequence of this union, Sverre Tidemand divested a portion of his holdings, ceding control to Teigen's entities, Kontrari and Kontrazi. Lighthouse Navigation, possessing nine supramax and ultramax bulk carriers, amalgamated its fleet with Belships, while also commercially overseeing approximately 30 bulk carriers. In this merged conglomerate, Belships assumes the role of the vessels' technical overseer, whilst Lighthouse Navigation, headquartered in Bangkok, undertakes commercial stewardship. In the aftermath of this merger, the entity's ambitions for expansion became palpable. By February, the acquisition maven from Norwegian shipbroker Fearnleys, Lars Christian Skarsgard, aged 38, was meticulously selected to helm Belships. Subsequently, a buying spree ensued, with Belships acquiring three bulk carriers via distinct transactions. Transactions included acquisitions such as MV Viola from Norway's Wenaas Group, MV Sofie Victory from EGD Shipholding, and MV Sephora from Greek magnate Elias Kulukundis, with the latter being partially remunerated in Belships' equity, paving the way for further expansion. Having adorned the Oslo Stock Exchange for over eight decades, experts posit that Belships might reap the dividends of being on the primary list, rather than on less stringent platforms. However, for such benefits to materialize, the liquidity of Belships’ shares must intensify, coupled with the adoption of a dividend policy that resonates with shareholders. Teigen, aged 57, brings a vast reservoir of maritime acumen to the table, expertise not confined to Lighthouse Navigation. A description of Teigen paints the portrait of a diligent, astute maritime entrepreneur, albeit one averse to the media limelight. He holds a preponderant share in Belships and enjoys a seat on its board. Belships' merger with Lighthouse Navigation has seemingly surmounted formidable obstacles, with the erstwhile contention from Sverre Tidemand’s kin, Otto Tidemand, regarding the sale's modus operandi being ultimately quashed. Teigen and Tidemand, both board members, appear to collaborate harmoniously, with Teigen's enterprise, Sonata, retaining 10% of Belships’ equities.
26-May-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers acquired eleven (11) bulk carriers from Sophocles Zoullas led Delphin Shipping for $140 million en-block. Delphin Shipping is backed by Kelso & Company (Kelso). After the transaction, privately owned Kelso & Company (Kelso) will own about 4.6% of Star Bulk Carriers’ outstanding shares. However, Kelso & Company (Kelso) will not be represented on the board of directors (BOD) of Star Bulk Carriers. After the acquisition, Star Bulk Carriers expanded the fleet to 120 bulk carriers. Star Bulk Carriers acquired eleven (11) bulk carriers:
- MV Aqulia (56K DWT built 2012)
- MV Cepheus (56K DWT built 2012)
- MV Columba (56K DWT built 2012)
- MV D. Centaurus (56K DWT built 2012)
- MV Hercules (56K DWT built 2012)
- MV Dorado (56K DWT built 2013)
- MV Hydrus (56K DWT built 2013)
- MV Pegasus (56K DWT built 2013)
- MV Pyxis (56K DWT built 2013)
- MV Leo (56K DWT built 2013)
- MV Apus (63K DWT built 2014)
Star Bulk Carriers will pay $139 million en-block to Delphin Shipping with a combination of cash and shares. 4.503 million new shares will be issued with $80 million cash. Cash will come from a 7-year capital lease of up to $93 million with China Merchants Bank Leasing, and an extra $15 million tranche to install scrubbers on newly acquired eleven (11) bulk carriers from Delphin Shipping.
A combination of cash and share payment is far above NAV (Net Asset Value). Delphin Shipping deal is enormously accretive to recent shareholders. The Latest Delphin Shipping deal implies a value on Star Bulk Carriers of $13.21 per share.
Currently, Star Bulk Carriers’ shares are trading at 45% discount to NAV (Net Asset Value). Market players assume that Star Bulk Carriers’ huge, scrubber fitted fleet provides substantial operating leverage when the dry bulk market recovers.
Newly acquired eleven (11) bulk carriers from Delphin Shipping will be chartered by the in-house chartering department of Star Bulk Carriers. However, technical management will be performed by George Youroukos led Technomar Shipping Inc.
26-May-2019
An incident at Xixiakou Shipyard involving the MV Jin Hai Xiang, a 69,000 DWT bulk carrier built in 1994, resulted in 19 injuries. This incident occurred while the vessel, part of the Fujian Shipping Group’s fleet, was undergoing its routine five-year special survey. In response, Fujian Shipping Group has dispatched a team to the shipyard to contribute to the ongoing investigation. The MV Jin Hai Xiang is one of the 26 bulk carriers operated by Fujian Shipping Group. The injured individuals from the MV Jin Hai Xiang have been hospitalized, and their conditions are reported to be stable.
26-May-2019
German shipowner and operator Oldendorff Carriers has begun outfitting its entire fleet with LED lift bulbs to decrease its green footprint. In 2018, Henning Oldendorff led Oldendorff Carriers tried the performance of various LED manufacturer’s lights. Lubeck-based Oldendorff Carriers determined that LED lights are more efficient than conventional lights on bulk carriers. After tests, Oldendorff Carriers concluded it was beneficial to switch to LED lights on bulk carriers. German shipowner and operator Oldendorff Carriers announced the first six bulk carriers have now been fitted with LED lights and that the remaining bulk carriers will be outfitted with LED lights. Oldendorff Carriers published that with LED bulbs fitted, the workload for the crew on board will be significantly diminished, as LED lights lifetime is about five times longer compared with normal fluorescent bulbs. Oldendorff Carriers proclaimed that the use of LED bulbs will also decrease the electrical power requirement and consequently the emissions from each bulk carrier.
26-May-2019
London-based shipowner and operator Union Maritime Limited (UML) sold 2005 built panamax bulk carrier 76K DWT MV Harrow (ex MV Red Queen) for around $9 million. London-based shipowner and operator Union Maritime Limited (UML) has secured a healthy profit from the sale of MV Harrow (ex MV Red Queen) which was a good asset play. In 2016, Union Maritime Limited (UML) acquired MV Harrow (ex MV Red Queen) when the bulk carrier market bottomed out. Union Maritime Limited (UML) made around 40% profit on the 2005 built panamax bulk carrier 76K DWT MV Harrow (ex MV Red Queen). In 2016, Union Maritime Limited (UML) acquired MV Harrow (ex MV Red Queen) from Japanese shipowner Toyo Kaiun. MV Harrow (ex MV Red Queen) is due for SS (special survey) in February 2020. In 2018, London-based shipowner and operator Union Maritime Limited (UML) made a similar asset play. Union Maritime Limited (UML) sold 2008 built supramax bulk carrier 58K DWT MV Albion for around $14 million to Thoresen Shipping. In 2016, Union Maritime Limited (UML) acquired MV Albion for around $9 million. In September 2018, Union Maritime Limited (UML) acquired five (5) aframax tankers from BP Shipping. In January 2018, London-based shipowner and operator Union Maritime Limited (UML) acquired 2005 built 105K DWT MT Bryanston (ex MT Phoenix Dream) for around $13.5 million. Union Maritime Limited (UML) has three (3) ultramax bulk carrier newbuildings at Cosco Heavy Industry. London-based shipowner and operator Union Maritime Limited (UML) will take the delivery of three (3) ultramax bulk carrier newbuildings in 2020. Union Maritime Limited (UML) will be paying around $24.5 million for each ultramax bulk carrier newbuilding. Currently, London-based shipowner and operator Union Maritime Limited (UML) owns and operates a mixed fleet of 40 ships.
25-May-2019
Navios Maritime Holdings, an Athens-based shipowner and operator listed on the New York Stock Exchange, has announced significant transactions in the sale and purchase market, effectively reducing the average age of its fleet by 20%. The company has finalized the acquisition of the MV Sea Victory, a 77K DWT panamax bulk carrier built in 2014, previously chartered-in by Japanese shipowner Shoei Kisen, for approximately $14.5 million. This vessel will be rebranded as MV Navios Victory. Concurrently, Navios Maritime Holdings has divested the MV Navios Vector, a 50K DWT supramax bulk carrier constructed in 2002, for an estimated $6.5 million. Additionally, Navios Maritime Holdings has confirmed the sale of two more vessels from its fleet. The 171K DWT capesize bulk carrier MV Navios Equator Prosper, built in 2000, was sold for about $11.5 million, and the 53K DWT supramax bulk carrier MV Navios Mercator, built in 2002, also fetched around $6.5 million. Following these transactions, the company oversees a fleet of 60 vessels, with two more expected to be sold. As of May 20, Navios Maritime Holdings has successfully chartered out 82.6% of its available days for the rest of 2019, indicating a solid booking rate that supports operational stability. The company has shown significant financial improvement, narrowing its net loss to $3.61 million in the first quarter from a loss of $41.23 million in the same period of 2018. Revenue also increased to $140.28 million from $116.88 million. Navios Maritime Holdings CEO Angeliki Frangou expressed satisfaction with the company’s performance in the first quarter of 2019, particularly highlighting an adjusted EBITDA of $68.5 million. These strategic moves in the sale and purchase market, coupled with effective chartering activities, reflect Navios Maritime Holdings’ commitment to fleet modernization and financial health.
23-May-2019
The Belgian capesize powerhouse Bocimar, a key player in the bulk carrier market, has successfully negotiated a solid sale price for one of its older vessels. Benoit Timmermans, the CEO of Bocimar, confirmed the sale of the 171K DWT capesize bulk carrier MV Mineral China, constructed in 2003. According to shipbrokers, the vessel, built by Hyundai Heavy Industries, was sold for $14 million to a South Korean buyer, and it includes a three-year charter arrangement back to Bocimar at a rate that remains undisclosed. For Bocimar, the MV Mineral China has proven to be a lucrative investment. Acquired in September 2003 for $45 million, the vessel was initially chartered to Navix Line for five years at a daily rate of $20,500. While the MV Mineral China has been successfully sold, it wasn’t the only vessel from CMB’s subsidiary Bocimar considered for sale. In October 2018, Bocimar listed the 177K DWT capesize bulk carrier MV Mineral Oak (built in 2010) for sale, though it remains on the market. The MV Mineral Oak is jointly owned with Canada’s Oak Maritime on a 50:50 basis. However, Bocimar is not just divesting assets; it’s also fortifying its presence in the capesize segment. In May 2018, the company struck a deal to acquire five capesize bulk carriers from German owner Oskar Wehr, a transaction that involved exchanging 12 handysize bulk carriers and a cash payment from Bocimar. Based in Antwerp, Bocimar is not only a prominent shipowner but also a founding member of Capesize Chartering. This alliance, established in 2016 by four leading bulker owners, operates as a major spot player in the capesize bulk carrier sector, managing a fleet of over 60 bulk carriers.
23-May-2019
Athens-based Vafias family-controlled shipowner and operator Brave Maritime Corporation Inc. invested $63 million in one capesize bulk carrier and two LPG carriers. Nikolaos Vafias-led shipowner and operator Brave Maritime Corporation Inc. acquired 2005 built capesize bulk carrier 176K DWT MV Cape Aria (ex MV Maritime Power) for around $12.5 million. Vafias Group acquired 2007 built LPG tanker 38K cbm Viking River for around $20 million. Vafias Group acquired a new building LPG tanker 11K cbm which will be delivered in 2021. 2005 built capesize bulk carrier 176K DWT MV Cape Aria (ex MV Maritime Power) acquisition is similar to the Brave Maritime Corporation Inc.’s countercyclical venture in the same space in 2016. Brave Maritime Corporation Inc. is the dry bulk shipping arm of the Vafias Group. Vafias Group also controls Athens-based tanker and LPG shipowner and operator StealthGas. StealthGas is led by Harry Vafias. Harry Vafias took five years away from shipping around the turn of the last decade after passing the operations of Brave Maritime Corporation Inc. over to his son in 2008. In 2013, Harry Vafias returned to the dry bulk shipping markets with a new vehicle Eco Dry Ventures. In 2013, Harry Vafias-controlled Eco Dry Ventures started in the handysize bulk segment. Nevertheless, as dry bulk freight rates declined to historic low levels in 2016, Harry Vafias made profitable asset plays in the capesize bulk segment. Athens-based Vafias Group made a 40% gain in selling 2006 built capesize bulk carrier 177K DWT MV Moneqasque Eclat and 2008 built capesize bulk carrier 177K DWT MV Tigerlily only months after the capesize bulk carriers were bought. Brave Maritime Corporation Inc. is the dry bulk shipping arm of the Vafias Group. Athens-based Vafias family-controlled StealthGas is best known for LPG and tanker acquisitions.
23-May-2019
Athens-based shipowner and operator Empire Bulkers Ltd was excused by the United Kingdom High Court from liability for damaged deck cargo due to the wording of a B/L (Bill of Lading). Empire Bulkers Ltd operated 2016 built handysize bulk carrier 34K DWT MV Elin was loaded steel cargo from Thailand to Algeria. Empire Bulkers Ltd operated MV Elin confronted troublesome seas and some of the steel cargo was lost or damaged. The important B/L (Bill of Lading) clause asserted that Empire Bulkers Ltd is not responsible for loss or damage to cargo loaded on deck and on-deck cargo is at the shipper’s risk. Cargo interests Globtainer, Algerian Qatari Steel, and AIG Europe. The cargo interests claimed that the cargo loss or damage was caused by the Empire Bulkers Ltd’s breach of duty. Cargo interests Globtainer, Algerian Qatari Steel, and AIG Europe claimed that the Empire Bulkers Ltd failed to exercise due diligence to make the ship seaworthy at the start of the voyage. However, the judge pronounced that as a matter of plain language and good commercial sense the shipowner’s interpretation of the clause should be preferred. The judge explained the meaning of the phrase that Empire Bulkers Ltd is not liable for any loss or damage to deck cargo howsoever arising. On a valid format of the B/L (Bill of Lading), the shipowner is not liable for any loss of or damage to any cargo carried on deck, including loss of or damage to any cargo carried on deck caused by the unseaworthiness of the ship and/or the shipowner’s negligence.
23-May-2019
Athens-based New York-listed shipowner and operator EuroDry (EDRY) is anticipating better days for dry bulk shipping in Q3 2019. The Brazilian mining giant Vale reclosed its mines after the dam disaster but EuroDry (EDRY) still anticipates a firm second half of a three-year outlook that indicates a more promising supply-demand balance. Higher ship charter rates should also arise from limited fleet growth caused by downtime for environmental compliance and slow-steaming. According to Aristides Pittas-led shipowner and operator EuroDry (EDRY), the existing fundamentals look extremely advantageous as the new building order book stands at only 1% of the anticipated fleet. EuroDry (EDRY) assumes that the recent shipping market slowdown is due to short-term elements and that in the medium-term and long-term, the fundamental supply-demand balance is supporting an improving shipping market. According to New York-listed shipowner and operator EuroDry (EDRY), panamax and supramax bulk carriers were much less affected by the Vale dam disaster. EuroDry (EDRY) anticipates the coal trade to increase due to the strong demand for electricity and the grain trade would rebound. According to EuroDry (EDRY), IMO (International Maritime Organization) 2020 regulations may add uncertainty to the future. In May 2018, Aristides Pittas-led shipowner and operator EuroDry (EDRY) spun off from sister container ship company Euroseas (ESEA). Aristides Pittas-backed Euroseas (ESEA) is the sister company of EuroDry (EDRY).
23-May-2019
Copenhagen-listed shipowner and operator Dampskibsselskabet DS Norden A/S signed a three-year COA (Contract of Affreightment) with Qatar Vinyl Company. Dampskibsselskabet DS Norden’s A/S three-year COA (Contract of Affreightment) with Qatar Vinyl Company will commence in Q3 2019. Dampskibsselskabet DS Norden A/S will carry salt cargoes from West Coast India to Qatar every month with a supramax bulk carrier. Dampskibsselskabet DS Norden A/S signed a three-year COA (Contract of Affreightment) with Qatar Vinyl Company for approximately 500Ktons of salt annually. Danish shipowner and operator Dampskibsselskabet DS Norden A/S increased the number of fleet in the Arabian Gulf, which permits Dampskibsselskabet DS Norden A/S to further expand the activities in the region. Copenhagen-based shipowner and operator Dampskibsselskabet DS Norden A/S expressed the three-year COA (Contract of Affreightment) with Qatar Vinyl Company would make utilizing the fleet in the Arabian Gulf more efficient. Dampskibsselskabet DS Norden A/S has been expanding the company’s presence in the Middle Eastern area.
22-May-2019
The Oslo Stock Exchange-listed Norwegian maritime enterprise, Belships, is contemplating another equity issuance to further its expansion aspirations post its amalgamation with Frode Teigen's Lighthouse Navigation. They anticipate raising an equivalent of $15 million in equity, contingent upon prevailing market dynamics, as indicated in their inaugural quarterly report. Belships envisions broadening its shareholder landscape and enhancing the liquidity of its shares. In the initial quarter, Belships acquired three pre-owned bulk carriers, combining cash and freshly minted shares, signaling an openness to analogous dealings in forthcoming times. The firm speculates the availability of more ships-for-shares transactions and remains poised to chase such lucrative endeavors, whilst also forecasting growth avenues via outright cash purchases of bulk carriers and extended vessel charters. The commencement of this year witnessed Belships grappling with a pronounced decline in its net profit margins. The first quarter for the Norwegian establishment yielded a net outcome of $2.5 million, a stark contrast to the $14.2 million recorded in the prior quarter's conclusion. The per-share earnings for this interval plummeted to $0.01, a significant drop from the previous $0.11. The Oslo-featured maritime conglomerate, Belships, however, witnessed its net profit surge in the final trimester of 2018, buoyed by a $12.8 million acquisition windfall stemming from Belships' takeover of Lighthouse Navigation. Recent revelations from Belships' quarterly report indicate the chartering of another one of its bulk carriers. The 2015 constructed ultramax bulk carrier, MV Belsouth, weighing 63,300 DWT, was recently commissioned to Western Bulk Chartering for a span ranging between six to nine months. The net proceeds from MV Belsouth are projected to resonate at $11,950 daily for the residual 2019. Furthermore, Belships illuminated details regarding the deployment of an ultramax, procured for $24.2 million in April. The 2016 crafted ultramax bulk carrier, MV Sofie Victory, operates under an index-aligned time charter with ED&F Man Shipping until March 2021, with a foundational net rate pegged at $10,800 daily. Subsequently, two other ultramax bulk carriers extended their time-bound commitments to Cargill in April. MV Belnippon, a 2015 fashioned ultramax bulk carrier, is now allied with the commodity magnate for an additional seven to nine months, at a net rate of $10,900 daily. In tandem, Cargill extended its engagement with MV Belforest, another 2015 manufactured ultramax bulk carrier, for a duration of 11-13 months at a consolidated daily rate of $10,800.
22-May-2019
Singapore-based restructured New Noble Group is looking for new banking and trade finance partners after its rebirth in December 2018. Totally New Noble Group has been formed from the ashes of Old Noble. Noble Group was a commodity trader and bulk carrier owner. Old Noble Group’s all of the assets and business being transferred. Creditors have taken over 70% of the New Noble Group, with 20% held by shareholders of the Old Noble Group and 10% by Noble’s management. New Noble Group had started operations with a strong liquidity position including more than $525 million of cash and 3 year committed trade finance and hedging facility following the successful refinancing. New Noble Group’s management continues to actively engage with new and prospective banking and trade finance partners as part of ongoing efforts to diversify working capital funding. New Noble Group’s BOD and management are focused to make sustainable profit and consolidate a position in Asia. New Noble Group comprises commodities management business under the name of Noble Trading Company and Noble New Asset Company. Noble Trading Company’s long-term annual EBITDA target for 2019 is between $175 million to $200 million remains unchanged. Noble Trading Company’s trading volumes are targeted to reach between 75 million and 80 million tonnes in 2019.
21-May-2019
Diana Shipping (DSX), an Athens-based shipowner and operator listed in New York, has further cemented its relationship with Singapore’s Koch Shipping, signing its third charter agreement this year with the company. The Greek shipowner has now agreed to a time charter contract for one of its capesize bulk carriers, the 2005 built MV Baltimore, boasting a 177K DWT. The agreement, which starts on Sunday, is set at $15,000 per day for a duration of 19 to 22 months. This contract is expected to generate an estimated revenue of roughly $8.3 million for its minimum duration. Earlier this year, Greek shipowner and operator Diana Shipping (DSX) entered into a similar length contract with Koch Shipping for another one of its vessels, the newcastlemax bulk carrier San Francisco, which has a 208K DWT and was built in 2017. This followed a 14 to 17-month agreement in February for the capesize bulk carrier Houston, a 177K DWT vessel built in 2009. Currently, Athens-based New York-listed shipowner and operator Diana Shipping’s (DSX) fleet comprises 45 dry bulk carriers.
21-May-2019
Athens-based New York-listed shipowner and operator EuroDry (EDRY) reported a net profit of $0.4 million for Q1 2019. EuroDry (EDRY) reported earnings of $0.18 per share for Q1 2019. EuroDry (EDRY) reported revenue of $$5.7 million for Q1 2019. New York-listed shipowner and operator EuroDry (EDRY) considers that the current shipping market downshift is due to short-term factors and that, in the medium and long term, the essential supply-demand balance is supporting an improving shipping market. New York-listed shipowner and operator EuroDry (EDRY) anticipates more elevated charter rates soon due to low order books, exhaust gas scrubber dry-dockings, and slow-steaming. Currently, Athens-based New York-listed shipowner and operator EuroDry (EDRY) has a fleet of seven (7) bulk carriers. In November 2018, Aristides Pittas-led shipowner and operator EuroDry (EDRY) acquired 2004 built panamax bulk carrier 75K DWT MV Star of Nippon. In May 2018, Aristides Pittas-led shipowner and operator EuroDry (EDRY) spun off from sister container ship company Euroseas (ESEA). Euroseas (ESEA), a sister company of EuroDry (EDRY).
21-May-2019
CarVal Investors owns 49.6% of Monaco-based Oslo OTC (Over The Counter) listed shipowner and operator GoodBulk Ltd. Furthermore, CarVal Investors sold 13 capesizes to GoodBulk Ltd in 2017. Recently, CarVal Investors sold 2017 built handysize bulk carrier 37K DWT MV Alpine and 2017 built handysize bulk carrier 37K DWT MV Summit. CarVal Investors sold MV Alpine and MV Summit to White Lake Shippingfor around $14.5 million each. In February 2019, CarVal Investors sold 2016 built handysize bulk carrier 35K DWT MV North Star and 2016 built handysize bulk carrier 35K DWT MV Grand Marais. CarVal Investors sold MV Merel D (ex MV North Star) and MV Maryam D (ex MV Grand Marais) to Alliance Maritime for around $32.5 million en bloc. In 2013, CarVal Investors commenced ship purchases as a private-equity fund. Furthermore, CarVal Investors primarily investing in other shipping companies since 2013. In May 2019, Besides 49.6% of GoodBulk Ltd, CarVal Investors holds a 6.5% stake in Diamond S Shipping and 0.5% of Golden Ocean Group. In October 2016, CarVal Investors obtained a 16.7% stake in Hunter Maritime Acquisition.
21-May-2019
CarVal Investors owns 49.6% of Monaco-based Oslo OTC (Over The Counter) listed shipowner and operator GoodBulk Ltd. Furthermore, CarVal Investors sold 13 capesize bulk carriers to GoodBulk Ltd in 2017. Recently, CarVal Investors sold 2017 built handysize bulk carrier 37K DWT MV Alpine and 2017 built handysize bulk carrier 37K DWT MV Summit. CarVal Investors sold MV Alpine and MV Summit to White Lake Shipping Group (W.L Shipping Ltd.) for around $14.5 million each. Management BV manages the bulk carriers of Gravelor Shipping Ltd which is an affiliate of the White Lake Shipping Group (W.L Shipping Ltd.). In February 2019, CarVal Investors sold 2016 built handysize bulk carrier 35K DWT MV North Star and 2016 built handysize bulk carrier 35K DWT MV Grand Marais. CarVal Investors sold MV Merel D (ex MV North Star) and MV Maryam D (ex MV Grand Marais) to Alliance Maritime for around $32.5 million en bloc. In 2013, CarVal Investors commenced ship purchases as a private-equity fund. Furthermore, CarVal Investors primarily investing in other shipping companies since 2013. In May 2019, Besides 49.6% of GoodBulk Ltd, CarVal Investors holds a 6.5% stake in Diamond S Shipping and 0.5% of Golden Ocean Group. In October 2016, CarVal Investors obtained a 16.7% stake in Hunter Maritime Acquisition.
20-May-2019
Tor Olav Troim’s 2020 Bulkers has successfully raised $70.2 million as it prepares to join the Oslo Stock Exchange, distinguishing itself as a Newcastlemax specialist. This fundraising effort, supported by both new and existing shareholders, involved the issuance of 7,800,000 shares at $9 each. The capital raise occurred during a particularly active week in the Norwegian capital markets, coinciding with Arne Fredly’s Hunter Group raising almost $80 million. Initially, 2020 Bulkers was expected to sell its ships prior to delivery, but earlier this year, the strategy was shifted towards operating the vessels. This marks Troim’s first foray into pure shipowning. The transition to the Oslo Stock Exchange comes after the company’s early phase in Oslo’s over-the-counter market. The recent placement saw key players such as Magni Partners, Halvorsens Fabrikk, Titan Credit Master Fund, and MH Capital, associated with Tor Olav Troim, agreeing to purchase $8 million of the shares. The exact investment contributions from these entities after the placement’s completion remain undisclosed. A consortium of financial institutions, including Clarksons Platou Securities, Danske Bank, DNB Markets, Fearnley Securities, Nordea Bank, Pareto Securities, and Skandinaviska Enskilda Banken, facilitated the fundraising for 2020 Bulkers. The company has eight scrubber-equipped Newcastlemax bulk carriers under construction at New Times Shipyard in China, scheduled for delivery between September 2019 and May 2020. Three of these vessels have secured charters with Koch Supply and Trading’s Koch Shipping Pte Ltd. The first ship is contracted on an indexed rate for three years, while the other two have one-year contracts at rates around $20,000 per day, significantly higher than the current rates for standard capsize bulk carriers. Last week, Koch Shipping Pte Ltd chartered the 177K DWT MV Baltimore from Diana Shipping on a 19 to 22-month contract at $15,000 per day. However, the 2020 Bulkers vessels are larger, state-of-the-art, and equipped with scrubbers, justifying their higher charter rates. Marius Halvorsen, CEO of 2020 Bulkers, indicated the company’s focus is not on expanding the fleet but rather on maximizing dividends from the existing ships. 2020 Bulkers will join Troim’s other venture, Borr Drilling, on the Oslo Stock Exchange, while his Golar LNG is listed in the US. Additionally, Troim is working on an independent listing for Golar’s LNG carrier fleet.
20-May-2019
Athens-based shipowner and operator Meadway Shipping & Trading Inc sold 2005 built supramax bulk carrier 53K DWT MV Delfa for around $8 million to a Vietnamese shipowner and operator. In 2010, Meadway Shipping & Trading Inc acquired MV Delfa from Soechi Lines for around $25 million. Athens-based shipowner and operator Meadway Shipping & Trading Inc last sold a bulk carrier in April 2017, when Meadway Shipping & Trading Inc sold the sistership 2007 built supramax bulk carrier 53K DWT MV Lark to Meratus Line for $7.5 million. Meadway Shipping & Trading Inc was established by Dionysios Dellaportas in 1989 as a shipbroking company. In 2011, Meadway Shipping & Trading Inc opened an office in Singapore and recently opened an office in Dubai. Currently, Athens-based shipowner and operator Meadway Shipping & Trading Inc. own and operate a fleet of eleven (11) bulk carriers.
20-May-2019
Japanese shipowner and operator K Line’s (Kawasaki Kisen Kaisha) car carriers struggle to rebound from the challenging shipping market. Currently, the car carrier market encounters uncertain periods. Tokyo Stock Exchange-listed shipowner and operator K Line (Kawasaki Kisen Kaisha) profited from long-term agreements, occasionally of up to 10 years with giant car companies. However, the US-China trade war, slowing economic growth, and longer-term structural shifts in the automotive industry have left the shipowners like K Line (Kawasaki Kisen Kaisha) with many challenges. Currently, around 15 million cars are carried by sea. The car carrier sector is struggling to rebound from a poor market. Car manufacturers have resumed investing in emerging markets, where demand is growing. K Line’s (Kawasaki Kisen Kaisha) car carriers team has been struggling because trading patterns have been shifting rapidly and the car carrier market is more competitive. Currently, more than 400 terminals worldwide are called by car carriers. Slowing passenger car volume expansion has seen shipowners like K Line (Kawasaki Kisen Kaisha) forced to order car carriers with stronger ramps and more hoistable decks, as well as funding in land-based automotive logistics. PCC (Pure Car Carrier) operators like Wallenius Wilhelmsen and Hoegh Autoliners have concentrated on terminals and inland services. Ro-Ro companies such as Stena moved into the car carrier sector, which constructed competition for PCC (Pure Car Carrier) players such as United European Car Carriers and K Line European Sea Highway Services.
20-May-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers reported a $5.3 million loss for Q1 2019 due to exhaust gas scrubber installations. In Q1 2018, Star Bulk Carriers reported a $9.9 million profit. In Q1 2019, Star Bulk Carriers reported $166 million revenue but voyage expenses increased to $44 million and charter-in hire costs increased to $22 million. Furthermore, Star Bulk Carriers reported heftier dry-docking costs of $9 million due to scrubber installations. Star Bulk Carriers reported ship operating expenses of $39 million in Q1 2019. Petros Pappas led shipowner and operator Star Bulk Carriers will install scrubbers to 40 bulk carriers till the end of May 2019. Star Bulk Carriers expects to have a fully scrubber fitted fleet by January 2020 IMO (International Maritime Organisation) deadline. In 2018, Star Bulk Carriers acquired 34 capesize bulk carriers to its fleet. Currently, Star Bulk Carriers has a mixed fleet of 111 bulk carriers. Star Bulk Carriers is planning to install scrubbers in the entire fleet by 2020. Star Bulk Carriers schemed to install scrubbers on 52 bulk carriers through the drydocking period. Additionally, 50 more bulk carriers will be installed scrubbers while operating at sea. Star Bulk Carriers want to take advantage of what may be a prosperous 2020 for scrubber fitted bulk carriers. Star Bulk Carriers seek to maximize the operating days in 2020. Therefore, Star Bulk Carriers scheduled all drydocks to an earlier time in 2019 that would otherwise be due in 2020. In Q1 2019, Star Bulk Carriers reported an adjusted net loss of $8.5 million in Q1 2019 versus an adjusted profit of $11.9 million in Q1 2020. Adjusted net loss was due to a $3.09 million unrealized loss on forward freight agreements (FFA) and bunker swaps. In Q1 2019, Star Bulk Carriers reported a $0.09 loss per share, versus $0.18 earnings per share in Q1 2018. In Q2 2019, 76% of Star Bulk Carriers’ fleet had been fixed for at $10,006 per day which indicates an improvement in revenue for Q2 2019.
19-May-2019
Norwegian shipowner and operator Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) has received approval from Oslo Bors to include its securities on the Oslo Axess market within the upcoming six weeks. As per the filing on Monday, the listing should commence no later than the 5th of July this year. Before the first day of listing, Klaveness Combination Carriers (KCC) needs to meet the listing requirements set by Oslo Axess, according to the filing. In January, Klaveness Combination Carriers’ (KCC) board was authorized during a general meeting to issue new stock valued at $2.34 million in conjunction with the initial public offering.
19-May-2019
2020 Bulkers, under Tor Olav Troim’s leadership, has successfully raised $70.2 million as it prepares to list on the Oslo Stock Exchange, specializing in Newcastlemax vessels. This capital raise saw the issuance of 7.8 million shares, each priced at $9, with both new and existing shareholders participating. The fundraiser coincided with a bustling week in the Norwegian capital markets, notably alongside Arne Fredly’s Hunter Group, which raised close to $80 million. Originally anticipated to sell its vessels before delivery, 2020 Bulkers shifted its strategy earlier in the year, choosing instead to operate them. This pivot marks Troim’s first foray into solely owning a shipping venture. The transition to the Oslo Stock Exchange follows its initial presence on the city’s over-the-counter market. The company’s move comes amidst rival Polaris Shipping’s exploration of a Norwegian capital listing. Key stakeholders such as Magni Partners, Halvorsens Fabrikk, Titan Credit Master Fund, and MH Capital committed to purchasing $8 million of the offered shares. The exact investment proportions from each entity remain undisclosed post-placement. Various financial institutions, including Clarksons Platou Securities, Danske Bank, DNB Markets, Fearnley Securities, Nordea Bank, Pareto Securities, and Skandinaviska Enskilda Banken, were instrumental in facilitating the capital raise for 2020 Bulkers. The company currently has eight scrubber-equipped Newcastlemax bulk carriers under construction at New Times Shipyard in China, slated for delivery between September 2019 and May 2020. Three of these vessels have already secured charters with Koch Supply and Trading’s arm, Koch Shipping Pte Ltd. The charter rates, reportedly higher than typical capsize vessels, include a three-year indexed rate for the first vessel and one-year agreements for two others at rates around $20,000 and $22,000 per day. This development follows the recent charter by Koch Shipping Pte Ltd of the MV Baltimore, a 177K DWT ship built in 2005, from Diana Shipping, indicating a robust market for such ships. Marius Halvorsen, CEO of 2020 Bulkers, emphasized the company’s intention to prioritize dividends rather than fleet expansion. With this listing, 2020 Bulkers will join Tor Olav Troim’s other venture, Borr Drilling, on the Oslo Stock Exchange, complementing his Golar LNG, which is listed in the US. Additionally, Tor Olav Troim is pursuing an independent listing for Golar’s LNG carrier fleet.
19-May-2019
Athens-based shipowner and operator Meadway Shipping & Trading Inc sold the 2005 built supramax bulk carrier 53K DWT MV Delfa for approximately $8 million to a Vietnamese shipowner and operator, after having acquired MV Delfa in 2010 from Soechi Lines for around $25 million. The last time Athens-based shipowner and operator Meadway Shipping & Trading Inc sold a bulk carrier was in April 2017, when Meadway Shipping & Trading Inc sold the sistership 2007 built supramax bulk carrier 53K DWT MV Lark to Meratus Line for $7.5 million. Meadway Shipping & Trading Inc was founded by Dionysios Dellaportas in 1989 as a shipbroking company. In 2011, Meadway Shipping & Trading Inc expanded by opening an office in Singapore and more recently established a presence in Dubai. Currently, Athens-based shipowner and operator Meadway Shipping & Trading Inc own and operate a fleet of eleven (11) bulk carriers.
19-May-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers rely on the future of exhaust gas scrubbers. In the second week of May 2019, environmental groups called for the entire banning-order on exhaust gas scrubbers. On the other hand, IMO’s (International Maritime Organisation) Marine Environment Protection Committee (MEPC) approved the European Union’s February 2019 request to harmonize IMO (International Maritime Organisation) scrubber rules over 2020. NASDAQ listed shipowner and operator Star Bulk Carriers will be paying around $175 million for scrubber installations on 102 bulk carriers by 2020. However, Star Bulk Carriers is not excessively concerned over the IMO (International Maritime Organisation) possible ban. According to Star Bulk Carriers, the chances of an open-loop scrubber IMO (International Maritime Organisation) ban is extremely small in the international sea. Furthermore, open-loop scrubbers are not practically a cause of contamination at all. Contemporary seawater tests revealed scrubber pollutant levels in ports to be well within the European Union (EU) limits. Additionally, it might be complicated for the IMO (International Maritime Organisation) to modify any significant regulations about open-loop scrubbers before 2022.
18-May-2019
A celebrated figure in ship management has relocated to Hamburg, taking command of one of Zeaborn Ship Management GmbH & Co. KG. Rob Grool has assumed the role of CEO for Zeaborn Ship Management GmbH & Co. KG, succeeding Holger Strack, who served as the provisional head since the dawn of the year. Throughout his illustrious 39-year maritime tenure, Rob Grool’s repertoire boasts engagements with several esteemed shipping conglomerates, including Wallem, Seaspan, and most recently, Vroon. Rob Grool brings to the fore a distinguished industry nexus, deep-rooted proficiency across all facets of ship management and operations, coupled with vast international acumen and years of leadership distinction. Rob Grool is acclaimed for overseeing clients’ vessels with the discerning perspective of an owner. Through our recent acquisition of Claus-Peter Offen Tankschiffreederei (CPO Tankers), the trajectory has been set for Zeaborn Ship Management GmbH & Co. KG to stand as a comprehensive service provider in the ship management domain.
17-May-2019
After 15 years, Ta-Ho Maritime Corp, the shipping division of Taiwan Cement Corp (TCC), has welcomed the new eco-friendly cement carrier MV TAHO AFRICA into its fleet. This vessel is the first in the Ta-Ho Maritime Corp lineup to be fully equipped with all-rounded, automatic, zero-pollution technology. The main engine of MV TAHO AFRICA incorporates the latest hydraulic electronic control systems and a fuel-efficient design. It exceeds the International Maritime Organization (IMO) standards for emissions, reducing nitrogen oxide (NOx) emissions by more than 15% compared to conventional standards. Additionally, compared to older diesel engines, it cuts carbon dioxide (CO2) emissions by 15% and nitrogen oxides by about 20%. The new eco-friendly cement carrier MV TAHO AFRICA aligns with UN Climate Action initiatives and sustainable marine protection, highlighting Taiwan Cement Corp’s (TCC’s) dedication to advancing towards a Circular Economy. This ship represents a significant step forward for Taiwan Cement Corp (TCC) as it embarks on a new journey to achieve further environmental milestones.
16-May-2019
A conveyor belt has collapsed on Athens-based shipowner and operator Laskaridis Shipping Ltd controlled 2017 built ultramax bulk carrier 63K DWT MV Leonidas during loading operations at Puerto Patillos Port in Chile. Greek Laskaridis family-controlled shipowner and operator Laskaridis Shipping Ltd controlled 2017 built ultramax bulk carrier 63K DWT MV Leonidas was loading salt cargo when the incident occurred. Chile’s Maritime Authority will commence an investigation. Puerto Patillos Port Authority informed that one person had suffered minor injuries at the incident. Puerto Patillos Port Authority is assessing the best option to clear the MV Leonidas, minimizing damage to MV Leonidas and the port.
16-May-2019
Vale has reported detecting movements at its Gongo Soco iron ore mine in Brazil, posing potential risks to a nearby dam. Although iron ore production at the Gongo Soco mine ceased in April 2016, Vale’s safety concerns are not expected to impact its production forecast or the outlook for the capesize market significantly. Structural issues at Vale’s Brazilian facilities, including a catastrophic dam collapse that resulted in over 300 fatalities, have already reduced the iron ore market by 40 million tonnes amid tensions between the US and China. Vibrations were observed at the mine’s North slope in Barao de Cocais, Minas Gerais, where operations have been halted since 2016. Vale indicated that any potential material displacement would likely be contained within the mine pit but could still affect the nearby Sul Superior tailings dam, located 1.5 km away. The company is assessing the potential impact on the dam’s structure while monitoring both the pit and the dam. In early February, more than 450 people were evacuated from the vicinity of the Sul Superior dam as a precaution, following a tragic incident two weeks prior when Vale’s Brumadinho tailings dam at the Feijao iron-ore mine collapsed, causing over 300 deaths. Following the disaster, Vale closed 50 tailings dams for inspection. Recently, Vale adjusted its 2019 iron ore and pellets sales forecast to the lower or mid-range of its 307 to 332 million tonnes projection. The initial production cuts impacted the capesize market significantly, depressing asset values, but current firm fixing rates for capesize bulk carriers suggest they might be undervalued, as indicated by Cleaves Securities. The firm predicts an exceptionally long expansionary cycle for the dry bulk market. Vale plans to decommission its remaining 10 inactive upstream tailings dams, including the Sul Superior dam, as part of its announced strategy in January.
15-May-2019
Athens-based George Economou-led shipowner and operator DryShips disbursed $100 million to BWTS (Ballast Water Treatment Systems) and scrubbers and EGS (Exhaust Gas Scrubbers). New York-listed Greek shipowner and operator DryShips anticipates Q1 operating income plunges mainly due to the expenses. DryShips anticipates 1,300 off-hire days across all the fleet. George Economou-led shipowner and operator DryShips has planned and commenced executing a general future-proofing strategy for its fleet update. George Economou publicized schedules to dedicate $350 million to install EGS (Exhaust Gas Scrubbers) on all the fleet under DryShips and private company TMS.
15-May-2019
The Greek dry bulk company Pavimar SA has completed the purchase of two Sanoyas-built panamax bulk carriers from Triton Navigation, a Netherlands-based company with ties to Japan’s Sumitomo Corp. The Athens-based Pavimar SA invested a total of $27.6 million for the 2009-constructed panamax bulk carriers, MV Lake Dahlia and MV Triton Gannet. This acquisition price surpasses the fair market value estimated at $26.51 million for the duo, but it’s noteworthy that both MV Lake Dahlia and MV Triton Gannet have recently undergone Special Surveys (SS). Established by Ismini Panagiotidi in 2014, Pavimar SA’s fleet now comprises 14 bulk carriers.
15-May-2019
Lisbon-based shipowner and operator Portline Bulk International has been fined $1.5 million in the United States pollution case after one crew member confirmed a bogus oily water separator (OWS). Portline Bulk International operated 2001 built supramax bulk carrier 51K DWT MV Achilleus had falsified entries in an oil record book which is used to track the disposal of bilge water. Portline Bulk International has agreed to pay $1.5 million after the company admitted in a plea deal. United States Coast Guard (USCG) inspectors identified the false documentation on board of MV Achilleus. Portline Bulk International’s two (2)engineers face fines of up to $250,000 and a maximum of six (6) years in prison. If the United States’ judge approves the Portline Bulk International plea deal, 33% of the fine would go to whistle-blowers of MV Achilleus. Frequently, Oily Water Separator (OWS) is bypassed by running bilge water through a hose that is the so-called Magic Pipe among seafarers. Magic Pipe system is to hook up the bypass hose a day or two after the ship left port and leave it connected, under the deck plates, during the oceanic voyage. Before entering a new port, the hose is disconnected and hidden in a ship’s storage room.
14-May-2019
Chinese shipping giant Cosco Shipping Bulk’s sister company Singapore-listed Cosco Shipping International reported revenue of $2.5 million in Q1 2019. Cosco Shipping International reported a net profit of $2.1 million in Q1 2019. Nevertheless, bulk carrier charter rates were lower in Q1 2019. Cosco Shipping Bulk’s sister company Singapore-listed Cosco Shipping International primarily concentrated on supramax bulk carriers. Currently, Cosco Shipping International owns and operates three (3) bulk carriers.
13-May-2019
The managers of the Sea Stallion Pool have set their sights on commercially managing a fleet of approximately 40 modern handysize bulkers. According to Oliver Harms, the Director of Chartering and Operations at German shipping company Aug Bolten, the expansion is expected to come from existing and non-pool members who are attracted by Hamburg-based Sea Stallion Pool’s ability to outperform the market. Aug Bolten, which is the commercial manager of the pool, has been expanding and recently added a fifth ship from its newest member, Athens-based shipowner and operator M/Maritime, to bring the total number of bulk carriers in the pool to 27. Although Greek John Mytilineos-backed M/Maritime entered the Sea Stallion Poo with 2019 built handysize bulk carrier 37K DWT MV Charisma GR at the end of April, the Sea Stallion Pool managers have expressed their ambition to expand Sea Stallion by up to 10 bulk carriers, increasing the fleet to about 40 bulk carriers. Sea Stallion Pool was founded in 2013 by Greek Xylas-family controlled Ariston Navigation. Sea Stallion Pool is teamed up with Lydia Mar, the Piraeus-based affiliate of Aug Bolten, which is controlled by Gerhard Binder. Aug Bolten is Germany’s second-oldest shipping company. Sea Stallion Pool began operating with a fleet of just eight (8) eco-optimized 36K DWT handysize bulk carriers.
Today, Sea Stallion Pool has six (6) members, but Oliver Harms expressed they want to remain a medium-sized, owners-minded pool. Other members include Castleton Commodities Shipping. Athens-based shipowner and operator M/Maritime, which joined in October, is the newest member. M/Maritime has five (5) bulk carriers in the handysize pool, as well as two more under construction that will be included. Oliver Harms said that further growth is likely should existing pool members take on new projects, either through time charters or acquisitions. But he believes the key to attracting new members could be the excellent performance of the pool, which has consistently outperformed the market. Bulk carriers in the pool earned 22% over the benchmark Baltic Exchange Baltic Handysize Index (BHSI), which measures time charter rates for 28,000-dwt, non-scrubber fitted geared bulkers. The bulk carriers earn up to 8% over the more recently introduced Baltic Exchange Baltic Handysize Index (BHSI 38), which measures rates for similar ships of 38K DWT. Despite the current market being pretty low, Oliver Harms still believes that in the second part of the year and going forward, the fundamentals for the handysize market are not too bad. The market for handysizes this week remains in the doldrums at about $7,623 per day, according to the Baltic Exchange Baltic Handysize Index (BHSI 38), and $5,711 for the BHSI. The bulk carriers are mainly operated in the spot market but obtain a small premium owing to their fuel-efficient, eco-friendly designs. Oliver Harms is optimistic that the prospects for the handysize bulker market remain positive. Sea Stallion Pool members have invested in the handysize sector for the long term, not for short-term asset play, and this provides some stability to the pool going forward. The Sea Stallion Pool is one of several cooperative measures involving Aug Bolten. In April, Sea Stallion Pool teamed up with MPC Capital’s bulker technical management joint venture Ahrenkiel Vogemann Bulk, which manages 17 ships.
13-May-2019
Offshore consultancy firm Aqualis and London-based shipbroking and services firm Braemar Shipping Services have reached an accord wherein Aqualis will acquire Braemar Shipping Services’ adjusting, marine, and offshore business divisions, encompassing the majority of Braemar Technical Services. The amalgamated entity shall bear the name AqualisBraemar, with Braemar Shipping Services emerging as the principal stakeholder, possessing 26% ownership, which may potentially increase to 33% contingent upon business performance. AqualisBraemar will comprise four primary business segments: Adjusting, Marine, Offshore, and Renewables. The esteemed CEO David Wells, hailing from Aqualis, shall spearhead the organization, with its headquarters situated in London. By offering joint and enhanced expertise, AqualisBraemar shall be better equipped to facilitate the clients’ growth. Completion of the transaction is anticipated by the conclusion of June.
13-May-2019
Turkish shipowner and operator Densay Shipping sold two (2) 2010 built supramax bulk carriers 57K DWT MV SSI Invincible and MV SSI Expedition to Changjiang National Shipping Group Corporation for around $25 million total. In 2016, Densay Shipping acquired MV SSI Invincible and MV SSI Expedition for around $13.5 million from a bank-driven deal. Densay Shipping struck again with successful asset play in S&P (Sale and Purchase) market. Changjiang National Shipping Group Corporation is a unit of China Merchants Group. Currently, Changjiang National Shipping Group Corporation has a fleet of 40 ships. In recent years, Densay Shipping has completed profitable asset plays. Densay Shipping has picked substantial profits from buying and selling ships. In 2016, Densay Shipping acquired MV SSI Invincible and MV SSI Expedition from Seoul based Chang Myung Shipping as the MV CS Azalea and MV CS Champ. In 2018, Turkish shipowner and operator Densay Shipping sold 2007 built handysize bulk carrier 32K DWT MV SSI Spring for around $10.5 million to Taylor Maritime. In 2017, Densay Shipping acquired MV SSI Spring from a Japanese shipowner for around $6.5 million. In April 2019, Densay Shipping took the delivery of ultramax new-building bulk carrier 63K DWT MV SSI Splendid from Jinling Shipyard. Densay Shipping will take the delivery of another ultramax new-building bulk carrier at the end of 2019. In April 2019, Densay Shipping acquired 2012 built supramax bulk carrier 56K DWT MV SSI Invincible II (ex MV Naess Resolute) from Naess Ship Management for around $10 million. Currently, Densay Shipping has a fleet of 14 bulk carriers. Turkish shipowner and operator Densay Shipping was established in 1992 by Tayfun Gunerhan.
13-May-2019
Diana Shipping (DSX), a company led by Simeon Palios, experienced a notable surge in stock prices today, driven by strategic adjustments making its shares more appealing for resale, according to industry analysts. Athens-based New York-listed shipowner and operator Diana Shipping’s (DSX) stock saw a 10.3% increase, closing at $3.31. This uptick followed their announcement to both extend the tender offer deadline from last month and enhance the share price. Specifically, Greek shipowner and operator Diana Shipping (DSX) raised the price for 3.13 million shares by $0.20, settling at $3.40, and extended the tender’s concluding date by a fortnight to 28 May. Although it’s not given for stock prices to respond positively to such adjustments, this significant movement is logical given that the new price represents a 13% increment from the previous day’s closing value. Concurrently, the Time Charter Equivalent (TCE) rates for dry bulk shipping have experienced a gradual increase over the recent fortnight, rising to $9,153 per day from the prior rate of $8,845 for supramax bulk carriers.
13-May-2019
Bangkok-listed Thoresen Thai Agencies’ (TTA) subsidiary Thoresen Shipping reported a net income of THB 87 million ($2.8 million) in Q1 2019 versus the THB 166 million in Q1 2018. In Q1 2019, Thoresen Shipping reported a 65% decline in net profit. A surge in Q1 2019 revenue could not help Thoresen Shipping. Thoresen Shipping reported revenue of THB 1.7 billion, but this revenue was partially offset by operating expenses of THB 1.4 billion. In Q1 2019, Thoresen Thai Agencies subsidiary Thoresen Shipping reported an average TCE (Time Charter Equivalent) of $9,024 per day. According to Thoresen Shipping, dry bulk freight rates declined due to the US-China trade dispute, cyclone in Australia ,and Lunar New Year celebration. In Q1 2019, Thoresen Shipping operated an average of 41 bulk carriers. Currently, Bangkok-listed Thoresen Thai Agencies’ (TTA) subsidiary Thoresen Shipping has an owned fleet of 21 bulk carriers.
12-May-2019
Hong Kong and Qingdao-based Chinese shipowner and operator Agricore Shipping ASL has acquired the company’s second bulk carrier and appears poised to acquire a third, entering the shipowning realm with minimal fanfare. Agricore Group’s subsidiary Agricore Shipping ASL is the driving force behind the $9 million purchase of the 2005 built post-panamax bulk carrier 81K DWT MV ASL Jupiter (ex MV Alam Pintar) from PCL Shipping in Singapore. In 2018, Agricore Shipping ASL made the company’s initial acquisition by procuring 2001 built panamax bulk carrier 82K DWT MV ASL Venus (ex MV Hai Jing) from ICBC Financial Leasing. Previously, Agricore Shipping ASL acquired 2011 built supramax bulk carrier 57K DWT MV ASL Mercury. Hong Kong and Qingdao-based Chinese shipowner and operator Agricore Group (Agricore Shipping ASL) was established in Hong Kong in 2016. Agricore Group’s subsidiary Agricore Shipping ASL operates from Qingdao and focuses primarily on grain transportation from South America and the US Gulf to the Far East. Additionally, Agricore Shipping ASL engages in the transportation of coal, ore, fertilizers, and other commodities. Agricore Group’s subsidiary Agricore Ship Management Co Ltd manages the fleet of Agricore Shipping ASL.
12-May-2019
Norwegian shipowner and operator Belships shows 2020 hand with bunker price hedge instead of installing expensive scrubbers. Oslo-listed Belships has inked a deal to hedge the price differential between compliant 0.5% sulfur fuel oil and 3.5% sulfur fuel oil. Belships' CEO Lars Christian Skarsgard explained that "bunker price hedge" is a more efficient and cost-effective way, where Belships will not have to take any ships out of service. Norwegian shipowner and operator Belships mainly operate supramax bulk carriers and prefer to "bunker price hedge" which will not be required to invest in much-hyped scrubber technology. Nasdaq-listed Eagle Bulk Shipping is one of the outliers in the supramax sector in opting for the scrubber technology. Scrubbers are mainly preferred on among the larger bulk carriers. Belships says its initial move has secured exposure for 24,000 tons of bunkers for 2020 at a fixed price differential of $198 per ton. Belships' trading fleet will be physically ready by January 2020 to comply with the International Maritime Organisation (IMO) sulfur cap regulations. According to Belships, bunker price differential hedge reduces downside risks and represents an efficient alternative to costly installations of scrubbers, whilst retaining full utilization of the fleet and the flexibility to adjust the position as the market develops. Installing scrubbers would cost Belships around $3 million to $4 million per ship to fit scrubbers on its supramax bulk carriers. Furthermore, these supramax bulk carriers would be at the shipyard for 3 to 4 weeks each to install scrubber. Norwegian shipowner and operator Belships has been a dominant player in the supramax sale and purchase market. Belships has a fleet of 18 bulk carriers and 1 newbuilding for delivery in 2020. Oslo listed Belships was historically known for employing ships on period deals. Belships' charter strategy is more mixed after the merger with spot cargo focused Lighthouse.
12-May-2019
The esteemed George Youroukos-led Technomar Shipping has secured two post-panamax vessels from the prominent German enterprise, Zeaborn Ship Management GmbH & Co. KG. Insights from shipbroking connoisseurs reveal that the two exquisite 2004 vessels, forged by Hyundai Heavy, named MV E.R. Santa Barbara and MV E.R. Montecito, have been procured by the Hellenic shipowner at a handsome sum of $15.5 million apiece. This transaction further encompasses a charter stipulation. Over recent months, Technomar Shipping has displayed an escalating interest in augmenting its containership assembly, having assimilated numerous pre-owned vessels from German magnates.
10-May-2019
Ariston Navigation controlled 2015 built handy bulk carrier 36K DWT MV Alkyon will be sold subsequent critical legal fight. MV Alkyon is owned by Stallion Eight Shipping. MV Alkyon has been waiting at an anchorage area near Falmouth, UK. MV Alkyon will be sold on 18 June 2019 through sealed tenders. NatWest Markets (formerly Royal Bank of Scotland) are published as the petitioners by high court order. Greek Stallion Eight Shipping failed in a high court appeal. Stallion Eight Shipping had disputed MV Alkyon should be released unless the bank presented a cross-undertaking in damages for the loss emerging from the arrest. In March 2018, NatWest Markets (formerly Royal Bank of Scotland) informed the shipowner that the market value of the MV Alkyon was around $15 million. Therefore, the bank asked extra security for around $1.7 million. Stallion Eight Shipping opposed that appraisal and provided by the bank with higher estimates. NatWest Markets (formerly Royal Bank of Scotland) seized MV Alkyon in the UK on the basis of the appraisal assigned by shipbrokers. Greek Stallion Eight Shipping has referred to numerous other appraisals by fairly prominent shipbrokers that find MV Alkyon was worth up to $3 million higher at the time. MV Alkyon’s arrest could have been avoided because the loan-to-value shortfall would not have existed at all or would have been extremely lower than the $1.7 million directed by moneylenders. Greek Stallion Eight Shipping defended on the grounds that the bank’s appraisal was much substantially off-market and not in compliance with the mortgage terms. Stallion Eight Shipping claimed that the bank did not utilize its authorities in good faith or in pursuit of lawful commercial aims. Stallion Eight Shipping challenged that a conceivably catastrophic damage occurred as the unique income-producing ship is out of operation. UK appeal court acknowledged that to uphold Stallion Eight Shipping’s appeal would run counter to the principle that a petitioner in rem may arrest as of right.
9-May-2019
Diana Shipping (DSX), a Greek shipowner and operator, reported financial results showcasing a shift in fortunes from the previous year. The company registered a profit of $1.5 million attributable to common shareholders for the period, a significant turnaround from the $4.5 million loss reported in the same timeframe a year prior. However, the earnings per share stood at $0.02, which fell short of analysts’ expectations by the same amount. This period’s revenue witnessed an increase, reaching $60.3 million as compared to the previous year’s $48.4 million. This revenue surge can be attributed to the higher average time charter rates. However, this was somewhat offset by the decreased revenue resulting from the sale of two ships in December 2018. These ships were the MV Alcyon (built 2001) and the MV Triton (built 2001), sold for $7.4 million and $7.3 million, respectively. Further indicating the volatility of the shipping market, the Time Charter Equivalent (TCE) rates reported an increase, moving from $10,416 in the previous year to $13,453 in the current period. Athens-based New York-listed shipowner and operator Diana Shipping (DSX) has been proactive in its fleet management strategy. In mid-February, Diana Shipping (DSX) announced their intentions to sell two panamax bulk carriers, the MV Danae and MV Dione, both built in 2001, at a selling price of $7.2 million each. Furthermore, an agreement was reached on 10 April to offload the 2004-built panamax bulk carrier, MV Erato, by 10 June 2019.
9-May-2019
In the face of President Donald Trump’s recent elevation of tariffs, the shipping industry exhibits robust fortitude. Today, despite the Trump administration amplifying tariffs on nearly half of Chinese imports from 10% to 25%, the equity market in various sectors remained largely unperturbed. This new tariff adjustment encompasses $250 billion of Chinese merchandise, ranging from televisions to soybeans. New York’s eminent shipping conglomerates, responsible for transporting 90% of commodities via waterways, have gracefully weathered this storm, maintaining a steady stock trajectory throughout the day. The imposed tariffs on Chinese imports may not detrimentally affect the demand for dry bulk, given that its flow predominantly moves eastward, according to Poe Fratt of Noble Capital Markets. However, potential retaliatory actions by China, which may entail sourcing grains, inclusive of soybeans, from alternative countries besides the US, could indeed influence the dry bulk demand. Shares of the dry bulk entity, Seanergy Maritime, saw a modest decline of less than 4% to $1.78 by late afternoon, while its counterpart, Globus Maritime, experienced a 2% decrement to $2.88. In contrast, International Seaways observed an augmentation of nearly 4% in its stock value, reaching $20.18, and Scorpio Tankers ascended by over 3% to $27.58. The recent tariff threats unleashed by President DonaldTrump left some analysts apprehensive about a pervasive negative impact on shipping. Conversely, some opined that President Donald Trump might eschew actualizing these tariffs, proposing that his social media declarations were merely stratagems to expedite trade discussions with China. Poe Fratt highlighted that the dry bulk market is profoundly influenced by the regulated iron ore supply from Brazil, a consequence of the Vale mine catastrophe. Additionally, China’s curtailing of coal imports has contributed to market dynamics, Poe Fratt mentioned. Poe Fratt further elaborated that the somewhat languid freight rates observed in February have undergone a mild resurgence, contingent on the resolution of trade disputes and the velocity of iron-ore and coal deliveries into China. Analyst Jon Chappell of Evercore ISI remarked that the tariff developments predictably cast an adverse shadow on dry bulk equities, with some diminishing by a substantial 12.5% over the week. Yet, the overarching concern remains the possible detrimental repercussions on China’s economy and the subsequent influence on its commodity import demand. The influx of steel from China is unlikely to suffer, as the primary steel suppliers for the US are domestic, supplemented by Canada and Mexico, noted Jefferies analyst Randy Giveans. Given the limited crude oil, LNG, or LPG imports from China to the US, the overall trade of dry bulk and boxship might remain largely unaffected. In culmination, there is a prevailing anticipation of a trade agreement materializing in the ensuing months. It’s expected that China will consent to a substantial procurement of a diverse array of products from the US, ameliorating the trade disequilibrium between the nations, which would augur well for both shipping revenues and equities.
8-May-2019
Athens-based shipowner and operator Anbros Maritime SA sold 2002 built supramax dry bulk carrier 52K DWT MV Aghia Skepi (ex MV Vega Eternity) for around $6 million to Chinese shipowner. MV Aghia Skepi (ex MV Vega Eternity) was one of Anbros Maritime’s four (4) bulk carriers. MV Aghia Skepi (ex MV Vega Eternity) was built at Sanoyas Shipbuilding. Anbros Maritime has not acquired any bulk carriers in the last five (5) years. In July 2012, Anbros Maritime acquired MV Aghia Skepi (ex MV Vega Eternity) from Marubeni Corp for around $16 million. Currently, Anbros Maritime SA has a fleet of four (4) bulk carriers. In February 2014, Anbros Maritime acquired 2005 Tsuneishi Shipbuilding built panamax bulk carrier 76K DWT MV Gorgoypikoos from Cido Shipping for around $23 million. Current market value of MV Gorgoypikoos is around $9 million. A few years ago Anbros Maritime sold most of its vintage bulk carriers.
8-May-2019
Danish shipowner and operator Clipper Bulk is slashing 40 employees and terminating its Tokyo office as a business transformation. Clipper Bulk revealed a significant shift in business and infused capital into the business. Fresh funds and diminished costs will support the business to flourish again. Clipper Bulk will concentrate on operating rather than fully-owning tonnage. Previously, Clipper and V.Ships Ship Management had bulk carrier management deal. Clipper Bulk clarified that recapitalization and strategy transformation is partially driven by Clipper Bulk’s experience in Q1 2019 where the shipping market really collapsed. Clipper Bulk is decreasing size and costs. Clipper Bulk is slashing 40 employees. Jensen family would remain the controlling shareholder of Clipper Bulk with Frank Jensen as Chairman. Last month, Clipper Bulk revolutionize the company by selling all bulk carrier fleet. Before selling all the fleet, Clipper Bulk was listed with 15 bulk carriers from handysize up to panamax bulk carriers. Clipper Bulk has no longer fully-owned bulk carriers but does still own a handful of bulk carriers under joint-venture structures. Clipper Bulk emphasized that the dry bulk market is performing in an extra inconstant way. Clipper Bulk has been decreasing its fleet significantly over the last quarter. Clipper Bulk has an operating fleet of around 80 bulk carriers, including two pools. Clipper Bulk’s power in niche businesses and in modest joint ventures.
8-May-2019
Finnish shipowner and operator ESL Shipping has said serious technical problems with its new LNG-fuelled bulk carriers have been mainly fixed. In 2018, LNG-fuelled bulk carriers 25K DWT MV Viiki and 23K DWT MV Haaga were delivered from Chinese Shipyard Jinling. In February 2019, ESL Shipping confronted with serious technical problems" with their cranes, supplied by Cargotec MacGregor. In Q1 2019, profitability was hit as a result of the extensive and serious problems in the conventional mechanics of Cargotec MacGregor cranes. As a result of these crane problems on both ships, ESL Shipping had significant loss of income and additional costs. ESL Shipping was forced to identify other transport options with lower profitability during the repairs, which were carried out under warranty. At the end of Q1 2019, Cargotec MacGregor mainly finished repair works. ESL Shipping profit rose despite lots of troubles. ESL Shipping explained that the financial performance of new LNG-fuelled bulk carriers can only reach the targeted level starting from Q2 2019. In Q1 2019, Finnish shipowner and operator ESL Shipping has reported an operating profit of EUR 3.2 million ($3.58 million). In Q1 2018, ESL Shipping had reported EUR 2.6 million. ESL Shipping’s parent company Aspo’s CEO Aki Ojanen explained that growth was driven by higher transportation volumes and the earnings of the acquired Swedish shipping company AtoB@C. LNG-fuelled bulk carriers 25K DWT MV Viiki and 23K DWT MV Haaga’s cranes remained inoperable throughout Q1 2019 and ships were unable to operate as planned. ESL Shipping group 49 ships with a total capacity of 464,000 DWT. 22 are wholly-owned by ESL Shipping. In August 2019, ESL Shipping has an option to acquire the ownership of SEB Leasing’s 2011 built bulk carrier 20K DWT MV Alppila. Currently, MV Alppila is only managed by ESL Shipping. In 2011, ESL Shipping signed a lease agreement with SEB Leasing for MV Alppila and the transfer of ownership would improve profitability. Finnish shipowner and operator ESL Shipping is aiming at revenue of EUR 200 million and an operating profit margin of between 12% and 15% in 2020.
8-May-2019
South Korean shipowner and operator H-Line Shipping ordered two (2) 208K DWT newcastlemax bulk carriers at New Times Shipbuilding. Seoul-based H-Line Shipping secured employment with Brazilian mining giant Vale. South Korean shipowner and operator H-Line Shipping will pay over $100 million. With the latest order, Seoul-based H-Line Shipping now has five (5) newcastlemax bulk carriers booked at New Times Shipbuilding. The other three (3) newbuilding newcastlemax bulk carriers were ordered at the end of 2018. H-Line Shipping will take the delivery of three (3) new building newcastlemax bulk carriers in Q4 2020. South Korean shipowner and operator H-Line Shipping secured employment on a five-year COA (Contracts of Affreightment) from mining giant Vale. South Korean shipowner and operator H-Line Shipping ordered newcastlemax bulk carriers according to IMO (International Maritime Organization) Tier III standards. Seoul-based shipowner and operator H-Line Shipping will be paying around $54 million for each newcastlemax bulk carrier. Furthermore, Seoul-based shipowner and operator H-Line Shipping has a pair of 325K DWT VLOCs (Very Large Ore Carriers) under construction at Hyundai Heavy Industries (HHI). H-Line Shipping ordered the VLOCs (Very Large Ore Carriers) in Q4 2017 on the back of a long-term COA (Contracts of Affreightment) of 25 years with mining giant Vale. Seoul-based shipowner and operator H-Line Shipping will pay more than $80 million for each VLOC (Very Large Ore Carrier). H-Line Shipping will take delivery of VLOCs (Very Large Ore Carriers) between Q4 2019 and Q2 2020. Furthermore, Seoul-based H-Line Shipping ordered two (2) LNG-fuelled 180K DWT capesize bulk carriers Hyundai Heavy Industries (HHI). Two (2) LNG-fuelled 180K DWT capesize bulk carriers will be replacing older bulk carriers committed to steel-maker Posco. H-Line Shipping will take delivery of two (2) LNG-fuelled 180K DWT capesize bulk carriers in Q2 2020. Currently, South Korean shipowner and operator H-Line Shipping is the only shipping company to have ordered LNG-fuelled capesize bulk carriers. South Korean shipowner and operator H-Line Shipping was established in 2014 when South Korean private equity firm Hahn & Co acquired 78% of Hanjin Shipping’s bulk shipping business for around $256 million. Furthermore, in 2017, South Korean private equity firm Hahn & Co acquired Hyundai Merchant Marine’s bulker fleet. Currently, South Korean shipowner and operator H-Line Shipping owns and operates 43 bulk carriers and 7 LNG carriers.
8-May-2019
DVB Bank, a prominent German ship financing institution, has successfully finalized a syndicated refinancing deal worth $175 million for the bulk carrier enterprise, Polish Steamship (Polsteam Group), aimed at refinancing 34 bulk carriers. Operating out of Frankfurt, DVB Bank took the lead as the mandated lead arranger and bookrunner for the refinancing agreement concerning the 34 bulk carriers. CIT Group joined as a lead arranger as well, with Societe Generale, BNP Paribas, Siemens Bank, and Credit Agricole participating as co-arrangers in the deal. Globally, Polish Steamship Company (Polsteam), a major state-owned bulk carrier enterprise in Poland, boasts a workforce exceeding 2,700 employees. On an annual basis, the company undertakes approximately 500 voyages, transporting over 15 million tonnes of cargo. The fleet of Polish Steamship (Polsteam Group) comprises 56 young and modern bulk carriers, with an average fleet age of about 8 years. Additionally, the company owns roll-on/roll-off passenger ships (ro-paxes) and ferries, and it has placed orders for 6 new open-hatch carriers in China, scheduled for delivery between 2019 and 2020. Following a comprehensive restructuring program and a successful return to profitability, the Szczecin-based shipowner and operator Polish Steamship (Polsteam Group) is exploring further orders for newbuilds. The year 2019 is set to witness the delivery of the last 4 bulk carriers from a previous order, which includes several vessels initially abandoned at Chinese shipyards by a former board but have since been renegotiated. In 2017, the Polish government appointed CEO Pawel Brzezicki to bring stability to the state-owned entity, Polish Steamship (Polsteam Group), which now anticipates the need for 6 to 7 newbuilds annually. CEO Pawel Brzezicki has pointed out that many of the former managers were behind the cancellation of newbuilds in 2016. This refinancing move signals DVB Bank’s continued presence in the shipping finance sector despite facing significant loan provisions. Last year, there were reports that DZ Bank was finalizing the sale of parts of its transport unit, DVB, excluding the shipping portfolio, after facing challenges in selling the business as a whole. DZ Bank was nearing the completion of sales for its aviation and land transport portfolios, with plans to then focus on maritime assets. DZ Bank has openly stated it is exploring all possible options for DVB following shipping loan provisions that amounted to $970 million, adversely affecting the German lender’s profits in 2017.
7-May-2019
Shipowner John Fredriksen is the richest Norwegian that has lived ever. When John Fredriksen was 16 years old, he started his career as a telex messenger at shipbroker company Blehr & Tenvig. Currently, Norwegian shipping tycoon John Fredriksen’s capital is around $14 billion. Norwegian shipping tycoon John Fredriksen is the most wealthy Norwegian ever, particularly if inflation is corrected. What is driving Norwegian shipping tycoon John Fredriksen, as it seems not to be generating the capital, however, that John Fredriksen has a triumphant instinct. Shipowner John Fredriksen is the most influential and most prosperous shipping man the world has ever seen. Unlike other rich Norwegians, shipping tycoon John Fredriksen focuses on running his company and is less enthusiastic in Norwegian culture. Norwegian shipping tycoon John Fredriksen established the most influential shipping companies such as Frontline, Golden Ocean Group, Flex LNG, Seadrill-Northern Drilling, and Marine Harvest etc.
7-May-2019
Monaco-based Oslo OTC (Over The Counter) listed shipowner and operator GoodBulk Ltd reported a net income of $2.6 million for Q1 2019 or $0.09 per share. John Michael Radziwill-led GoodBulk Ltd has reported the company’s eighth consecutive profitable quarter and has announced its fifth dividend in a row. GoodBulk Ltd will distribute a cash dividend of $0.34 per share. Revenue sharing deals have permitted GoodBulk Ltd to protect the company from the surprising downturn in the capesize market seen in Q1 2019. Monaco-based shipowner and operator GoodBulk Ltd reported an average gross TCE (Time Charter Equivalent) rate of $13,858 per day on the company’s capesize bulk carriers, much more than the Baltic Capesize Index’s (BDI) average of $8,740 per day for Q1 2019. The preponderance of GoodBulk Ltd’s fleet is operated with charter revenue-sharing contracts, apart from five (5) capesize bulk carriers and one (1) panamax bulk carrier, which were fixed on period charters during the Q1 2019. According to GoodBulk Ltd, the fleet growth would be a fine balance with demand in 2020 but will be aided by ships exiting the world fleet to undergo tank cleaning, scrubber installations, and other operations to comply with the global sulfur cap on 1 January 2020. Currently, OTC (Over The Counter) listed shipowner and operator GoodBulk Ltd owns and operates 27 bulk carriers.
7-May-2019
United States-based Ed Coll-led Pangaea Logistics Solutions ordered two (2) post-panamax ice-class bulkers at Chinese Shipyards, with options for two (2) more post-panamax bulkers for $38 million each. Pangaea Logistics Solutions ordered post-panamax ice-class bulkers for a 10-year contract with its partner Baffinland Iron Mines in the iron ore trade on Canada’s Baffin Island. Pangaea Logistics Solutions will ship iron ore from remote Canadian territory’s ice-class trade. China’s Guangzhou Shipyard will construct post-panamax ice-class bulkers. Pangaea Logistics Solutions also holds 2 options at the Chinese shipyard in connection with the new pact with Baffinland Iron Mines. Post-panamax ice-class bulkers are scheduled for delivery in April and May 2021. Rhode Island-based Pangaea Logistics Solutions has been hauling iron ore from the remote location since 2015, with most exports to Europe. Pangaea Logistics Solutions has special relations with Baffinland Iron Mines because of the extra challenges presented with high Arctic shipping. Guangzhou Shipyard contract is also Pangaea Logistics’s first newbuilding contract in China. Guangzhou Shipyard has experience building ice-class and polar class ships. Pangaea Logistics’s new buildings are custom designed for the ice trades for subsidiary Nordic Bulk Carriers has developed over the past decade. Baffinland Iron Mines Corp shipped 4.1 million tonnes in 2017 from its Mary River Mine via the Milne Inlet Ore Terminal during an open-water season that lasts less than three months. The open-water season is between 2 August to 17 October because of the harsh arctic climate. Baffinland Iron Mines Corp aims to increase annual production to 12 million tonnes. Iron ore bound for Europe. Nordic Bulk Carriers is a subsidiary of Pangaea Logistics Solutions. Nordic Bulk Carriers has six (6) ice-class panamax ships that were built at Japanese Oshima Shipbuilding between 2010 and 2016. Nordic Bulk Carriers bought the first two (2) ice-class panamax ships from Japan’s Sanko Line in 2012 and then built similar ice-class panamax ships for its own account. Baffinland Iron Mines CEO Brian Penney was very excited about the market opportunities that these larger ice-class panamax ships present.
7-May-2019
Athens-based shipowner and operator Pioneer Marine reported improved Q1 2019 earnings notwithstanding lower dry bulk carrier rates as a consequence of the US-China trade war, Vale’s dam collapse, and Australia’s weather catastrophes. Oslo over-the-counter (OTC) listed Pioneer Marine had a good chartering strategy with a vision to operate the distressed dry bulk market. In Q1 2019, Pioneer Marine reported a $1.5 million. In Q1 2019, Pioneer Marine reported a revenue of $14.4 million. Pioneer Marin’s fleet has been covered for more than 65% during Q1 2019. Greek shipowner and operator Pioneer Marine beat the average freight rates in the handysize bulk market and secured a concrete operating cash flow. At the end of Q1 2019, Athens-based shipowner and operator Pioneer Marine reported a total liquidity of $23.3 million. Currently, Pioneer Marine has a fleet of seventeen (17) handysize bulk carriers and one (1) supramax bulk carrier.
7-May-2019
Thai-listed shipowner and operator Precious Shipping reported a net deficit of $2.6 million in Q1 2019. Khalid Hashim-led Precious Shipping reported EBITDA of $10.6 million. Precious Shipping reported total revenue of $30.5 million. Bangkok-based shipowner and operator Precious Shipping had outperformed the key bulker indices. Due to robust demand from minor bulks, Precious Shipping has not been affected by Vale’s dam disaster. According to Precious Shipping, trade tariffs have naturally change the origination of cargoes and make the shipping route more inefficient resulting in larger ton-miles sailed.
6-May-2019
Jefferies analyst Randy Giveans has suggested that Athens-based Navios Maritime Partners (NMM), a bulker and container ship company listed in New York, is currently undervalued. This assessment comes in the wake of the company’s latest financial reports, which showed a net loss of $9.52 million for the quarter ending March 31, a downturn from the $5.47 million profit reported in the corresponding period a year earlier. The loss includes a $7.3 million impairment charge related to the disposal of the MV Navios Galaxy I, a 74K DWT panamax bulk carrier built in 2001. Despite these figures, Giveans believes the company’s proactive financial management, particularly the prepayment of $73.5 million on a term loan following a $20 million capesize bulk carrier sale and leaseback agreement, signifies a strategic strengthening of its financial position. The analyst underscored the significance of Navios Maritime Partners’ actions in enhancing liquidity and initiating unit repurchases as indicators that the company’s units are trading at a considerable discount—60% of Net Asset Value (NAV), according to his analysis. Jefferies maintains its earnings per unit forecasts for 2019 and 2020 for Navios Maritime Partners. Giveans praised the company’s financial health, highlighting its $50 million in cash reserves and a net-debt-to-capitalization ratio of 36%, positioning Navios Maritime Partners favorably within its industry peer group for financial stability.
6-May-2019
Angeliki Frangou’s Navios Maritime Holdings, a New York-listed shipping company, has recently sold its oldest capesize bulk carrier, the MV Navios Equator Prosper, which was built in 2000. This 171K DWT vessel is part of a growing trend where larger bulkers are increasingly being sent to scrapyards. The sale price for the MV Navios Equator Prosper was reported at $437.50 per LDT (Light Displacement Tonnage), totaling approximately $8.8 million for the ship on an as-is basis in Singapore. This move comes amidst speculation that Navios Maritime Holdings might not directly sell ships for demolition, although the MV Navios Equator Prosper was the oldest in its fleet of ten capesize carriers, within a larger fleet of 35 bulk carriers. The shipping industry, particularly for capesize vessels, has been experiencing pressure due to a combination of global events including a catastrophic dam collapse in Brazil and ongoing trade tensions between the U.S. and China. This has contributed to an uptick in the number of large bulk carriers being scrapped. In the first four months of 2019 alone, 18 capesize vessels totaling over 3.4 million DWT have been demolished, according to BIMCO data. In a related development, Seoul-based Sinokor Merchant Marine is reported to be in the process of selling a capesize bulk carrier, the MV Geneva (built-in 1999), for demolition as well. European demolition shipbrokers have indicated that the MV Geneva, a 170K DWT vessel, has been sold for scrap to a buyer in Bangladesh for $475 per LDT, or around $9.5 million in total. The MV Geneva is believed to have already reached its final destination at the scrapyard. Requests for comments from Sinokor Merchant Marine regarding the sale have not been responded to.
5-May-2019
Nasdaq-listed shipowner and operator Eagle Bulk Shipping (EGLE) reported a profit of $29K for Q1 2019. Eagle Bulk Shipping (EGLE) has reported its second consecutive year on profit. Eagle Bulk Shipping (EGLE) reported a net revenue of $77 million and a total TCE (Time Charter Equivalent) revenue of $40 million. In Q1 2019, due to the weakness in dry bulk freight markets, Eagle Bulk Shipping (EGLE) was not able to achieve the highest TCE (Time Charter Equivalent). Eagle Bulk Shipping (EGLE) is satisfied to report Q1 2019 TCE (Time Charter Equivalent) outperformance which is over 30% of Baltic Supramax Index (BSI).
5-May-2019
Navios Maritime Partners (NMM), headquartered in Athens, experienced a shift to a loss in the first quarter, recording a net deficit of $9.52 million, compared to a profit of $5.47 million in the same period the previous year. This downturn was significantly influenced by a $7.3 million impairment charge from the sale of the 74K DWT panamax bulk carrier MV Navios Galaxy I, built in 2001, which was sold for $6 million, slightly less than the previously reported figure of $6.1 million to a Chinese shipowner. The company, which operates both bulk carriers and container ships and is listed on the New York Stock Exchange, also reported a decrease in revenue to $46.81 million from $53.05 million in 2018. Despite the challenging market conditions, CEO Angeliki Frangou highlighted the strong EBITDA of $15 million as a positive outcome, attributing the sector’s difficulties partly to the impact of a dam collapse in Brazil earlier in the year. This incident notably disrupted the iron ore supply chain to China, a crucial route for the dry bulk sector, affecting charter rates negatively. However, Frangou pointed out an improvement in market rates following the first quarter, with the current spot rate for capesize bulk carriers showing a significant increase of about 90% from the average rate observed in February and March. Furthermore, Navios Maritime Partners has been proactive in its financial strategies, completing a $20 million sale and leaseback transaction for a capesize vessel built in 2009 over 10 years, featuring an interest rate of 6.6%. Navios Maritime Partners holds an option to repurchase the vessel starting from the end of the fourth year, with a decreasing obligation to $6.3 million at maturity. Additionally, Navios Maritime Partners secured $31.4 million through a new commercial bank facility to refinance two capesize bulk carriers, enhancing its financial flexibility. To adjust its capital structure, the company announced a 1-for-15 reverse split of its common units. Looking ahead, Navios Maritime Partners has effectively contracted 84.8% of its available days for 2019, 36.2% for 2020, and 23.4% for 2021, promising revenues of $117.2 million, $82 million, and $80.8 million, respectively, for these years. The average daily charter-out rate for the fleet stands at $15,811 for 2019, escalating significantly in the following years to $27,479 for 2020, and $27,684 for 2021. Navios Maritime Partners’ fleet comprises 38 vessels with a total carrying capacity of 4.3 million DWT, including 34,000 TEU, positioning it strategically for the future despite current market challenges.
4-May-2019
Athens-based George Economou-led shipowner and operator DryShips acquired 2007 built newcastlemax bulk carrier 208K DWT MV Netadola for around $50 million from George Economou-backed Cardiff Marine. Nasdaq-listed Greek shipowner and operator DryShips the newcastlemax bulk carrier with its current lease financing and a leaseback agreement that incorporates a purchase obligation. DryShips has approved to charter 2007 built newcastlemax bulk carrier 208K DWT MV Netadola on an indexed linked contract, which DryShips can transform to a fixed-rate time charter. Greek shipping tycoon George Economou has a record of trading ships between public and private entities. Currently, diversified shipowner and operator DryShips has a fleet of more than 30 bulk carriers and tankers.
3-May-2019
Athens-based New York-listed shipowner and operator, Diana Shipping (DSX), is expanding its partnership with Ausca Shipping by adding another panamax to their list of active fixtures. Diana Shipping (DSX) announced its entry into a time charter agreement with Ausca Shipping, a Hong Kong-based firm, for its 2007-built panamax bulk carrier, the MV Arethusa, which has a deadweight tonnage of 73K. For this deal, Diana Shipping (DSX) will be receiving a daily rate of $9,150, and the agreement is slated to last for a minimum period of 12 months and can extend up to 15 months. Over the minimum contract period, Diana Shipping (DSX) is set to earn a gross revenue of approximately $3.2 million. This is not the first time Diana Shipping (DSX) is doing business with Ausca Shipping. They have already fixed three other panamax bulk carriers with the Hong Kong firm. These vessels include:
- MV Clio, built in 2005, with a deadweight of 73,691 tons.
- MV Artemis, built in 2006, with a deadweight of 76,942 tons.
- MV Dione, built in 2001, with a deadweight of 75,172 tons.
1-May-2019
New York-listed shipowner and operator Pangaea Logistics Solutions carries niche cargoes such as iron ore from remote Baffin Island in northern Canada, bauxite from Jamaica or even taking over a terminal operation as it has in Charleston, South Carolina. Lately, Pangaea Logistics Solutions signed a joint-venture partnership with Carver Maritime on a 20-year contract managing a port in Fall River, Massachusetts. Pangaea Logistics Solutions is a United States-based public company that evolved from the private Phoenix Bulk Carriers. Pangaea Logistics Solutions don’t get hurt when the freight market is poor because of niche businesses. Pangaea Logistics Solutions’ unique business model is underappreciated and the risk-reward profile is attractive. Pangaea Logistics Solutions’ unique asset-light logistics strategy offers exposure to the dry bulk market but also reduces market risk. Pangaea Logistics Solutions’ employees are entrepreneurially minded.
1-May-2019
Singapore-based Chinese-backed shipowner and operator Winning Shipping acquired 2002 built capesize bulk carrier 185K DWT MV Shinyo Challenger from Shinyo International for around $12 million. Sun Xiushun-led Winning International Group’s dry bulk shipping arm Winning Shipping has been expanding the company’s fleet through agreements in the new building and secondhand S&P (Sale and Purchase) markets. Winning Shipping ordered two (2) newcastlemax bulk carrier new buildings at Nantong Cosco KHI Ship Engineering (NACKS). Nantong Cosco KHI Ship Engineering (NACKS) is a joint venture between China’s Cosco Shipping and Japan’s Kawasaki Heavy Industries (KHI). Singapore-based shipowner and operator Winning Shipping will take the delivery of the first newcastlemax bulk carrier new building in Q4 2019 and the second newcastlemax bulk carrier new building in Q1 2020. Winning International Group’s dry bulk shipping arm Winning Shipping commenced working with Nantong Cosco KHI Ship Engineering (NACKS) in 2000 when Winning Shipping ordered two (2) 58K DWT supramax bulk carrier new buildings. Later on, Winning Shipping ordered two (2) newcastlemax bulk carrier new buildings at Nantong Cosco KHI Ship Engineering (NACKS). 2002 built capesize bulk carrier 185K DWT MV Shinyo Challenger will replace 1995 built capesize bulk carrier 185K DWT MV Winning Brother after MV Winning Brother was sold for demolition in 2018. Meanwhile, capesize market players expressed that Singapore-based Chinese-backed shipowner and operator Winning Shipping has shown interest in large bulk carrier newbuildings. Winning International Group’s dry bulk shipping arm Winning Shipping has approached shipyards under the control of China State Shipbuilding Corp (CSSC) and China Industry Shipbuilding Co, in addition to privately-owned shipyards for four (4) large bulk carrier newbuildings. Sun Xiushun-led Winning International Group was founded in 2002. Sun Xiushun was previously working at Cosco Qingdao. Winning International Group’s dry bulk shipping arm Winning Shipping started as a trader and ship operator in Qingdao. Winning Shipping established offices in Hong Kong and Singapore. Winning Shipping’s main shipping activity is transporting bauxite from West Africa to China. Sun Xiushun-led Winning International Group entered shipowning in 2007 with the acquisition of second-hand capesize bulk carriers. Winning International Group’s dry bulk shipping arm Winning Shipping acquired 39 capesize bulk carriers and two (2) panamax capesize bulk carriers in 10 years. Currently, Singapore-based Chinese-backed shipowner and operator Winning Shipping has a fleet of 32 capesize bulk carriers, two (2) supramax capesize bulk carriers, and one (1) post-panamax capesize bulk carrier.
1-May-2019
The eminent Hamburg-based ship management company, Zeaborn Ship Management GmbH & Co. KG., has recently finalized yet another significant acquisition, elegantly diversifying into the tanker sector by procuring Claus-Peter Offen Tankschiffreederei (CPO Tankers), the distinguished tanker management branch of the Offen Group. While the exact valuation remains undisclosed, Zeaborn Ship Management GmbH & Co. KG.’s rapid ascent in the industry is evident. Within a mere six-year span since its inception, Zeaborn Ship Management GmbH & Co. KG. has amalgamated numerous renowned German brands, establishing itself as one of the country’s most prestigious ship owning entities. In assimilating Claus-Peter Offen Tankschiffreederei (CPO Tankers), Zeaborn Ship Management GmbH & Co. KG remains unwavering in its strategic ambition to continually unify the maritime sector, whilst broadening its repertoire as a globally recognized, integrated shipping conglomerate. For the Offen Group, this divestiture aligns with their vision of honing their expertise exclusively on post-panamax container vessels.