30-April-2020
Oslo-based financial firm’s analyst Cleaves Securities has repeated the company’s commitment to shipping despite dropping Safe Bulkers (SB) from coverage. Limassol and Athens-based Safe Bulkers (SB) was being suspended for an indefinite duration by Cleaves Securities. Previously, Cleaves Securities pulled back in the USA. Cleaves Securities is comprehensively committed to shipping equity research. Oslo-based financial firm’s analyst Cleaves Securities assumes the low bulk carrier order-book, growing Chinese demand, and increasing Brazilian iron ore supply will sustain the dry bulk market remarkably well into the Q3 2020 and beyond. Lately, the dry bulk shipping sector has already lost coverage from large companies, such as JP Morgan, Morgan Stanley, UBS, Credit Suisse, and a group of smaller banks. Currently, Norwegian financial firm’s analyst Cleaves Securities covers 25 shipping companies.
30-April-2020
Nasdaq-listed shipowner and operator Seanergy Maritime (SHIP) raised another $5.2 million in equity. Stamatis Tsantanis-led shipowner and operator Seanergy Maritime raised around $25 million since the beginning of April 2020. Seanergy Maritime (SHIP) aims to enhance the company’s balance sheet. Currently, capesize player Seanergy Maritime (SHIP) has a fleet of ten (10) built capesize bulk carriers. Capesize bulk carrier rates emerge from historic lows while the Covid-19 pandemic made day-to-day business almost impossible. On 30-April-2020, The Baltic Exchange capesize weighted TCE (Time Charter Average ) across five routes reached at $7,263 per day. On 2-March-2020, The Baltic Exchange capesize weighted TCE (Time Charter Average ) across five routes was at $2,172 per day. However, on 3-December-2019, the Baltic Exchange capesize weighted TCE (Time Charter Average) across five routes was at $25,202 per day. Nasdaq-listed Greek shipowner and operator Seanergy Maritime (SHIP has been attempting to lift the company’s share price out of noncompliance with the Nasdaq Stock Market. On 25-September-2019, Seanergy Maritime’s (SHIP) shares reached Nasdaq’s $1 minimum bid price after getting a two-month extension. Stamatis Tsantanis-led capesize player Seanergy Maritime’s (SHIP) fleet is now generating adequate cash flows and Seanergy Maritime’s (SHIP) cash balance is quite sufficient.
29-April-2020
Norwegian investor Jakob Hatteland-led Hatteland Group purchased 5 million shares of Oslo listed shipowner and operator Belships from major shareholder Frode Teigenat for $0.60 per share. The transaction drives Jakob Hatteland-led Hatteland Group's total to 11 million shares or 5.18% of Belships. Currently, Japanese shipyard Imabari Shipbuilding has a 7% stake in Belships as part payment for a new building. Lars Christian Skarsgard led Belships is delighted to expand its shareholder base. Belships' main shareholder Frode Teigenat companies Kontrari and Kontrazi still have a total of approximately 60% of the shares in Belships. In 2018, Frode Teigenat's Lighthouse Navigation merged with Belships. After Frode Teigenat, Wenaas Group is the second-largest shareholder (8.5%), and Sverre Jorgen Tidemand's company is the third-largest shareholder (8.2%) of Belships. Currently, Belships controls around 24 bulk carriers.
29-April-2020
China Merchants Energy Shipping (CMES), a key player in Shanghai’s shipping sector, is gearing up for an expansion in its Very Large Crude Carrier (VLCC) fleet following a robust performance in the first quarter. Amid significant organizational restructuring, China Merchants Energy Shipping (CMES), part of the state-owned China Merchants Group, has received approval from its board to order two eco-friendly VLCCs from Dalian Shipbuilding Industry, at a cost of up to approximately $169 million. Details about this newbuilding contract will be disclosed once it’s signed, according to China Merchants Energy Shipping (CMES), which is among the world’s largest VLCC owners. In December, China Merchants Energy Shipping (CMES),commissioned four VLCCs from the same shipyard, totaling $332 million. The 307,000-dwt vessels are expected to be delivered between late 2021 and early 2022. China Merchants Energy Shipping (CMES),revealed this latest newbuilding plan along with its first-quarter results, showing a net profit surge to $179 million between January and March, aligning with prior forecasts. China Merchants Energy Shipping’s (CMES), oil tanker fleet reported a net profit of approximately $187.5 million. Despite variable tanker demand influenced by factors like seasonal trends, the pandemic, geopolitical dynamics, and OPEC+ production, the company managed to perform well. However, China Merchants Energy Shipping’s (CMES) bulker fleet, comprising 29 Very Large Ore Carriers (VLOCs) and smaller ships, saw a net profit decrease of about $9.5 million to $3.4 million, attributed to low raw material requirements and weak bulkers demand. China Merchants Energy Shipping’s (CMES) ro-ro division experienced a widened net loss of around $4.4 million due to subdued shipping demand. The company plans to dispose of two ro-ro ships, although further details were not specified. Additionally, China Merchants Energy Shipping (CMES) completed a takeover of the dry bulk and LNG assets of former Sinotrans & CSC group companies, valued at about $985.5 million, acquired by China Merchants Group. This acquisition brought 75 bulkers, interests in five Yamalmax LNG carriers, and their shipmanagement firms under China Merchants Energy Shipping’s (CMES) umbrella. Last year, China Merchants Energy Shipping(CMES) achieved a net profit of roughly $241.5 million, up 38.2% from 2018, with full-year revenue reaching about $2.19 billion. China Merchants Energy Shipping (CMES) announced a cash dividend distribution of approximately $101.1 million.
29-April-2020
Despite a soft dry market, Tokyo-listed Japanese shipping giant MOL (Mitsui O.S.K. Lines) declares profitable annual returns, unaffected substantially by the virus outbreak in the 2019 fiscal year. Tokyo-listed Japanese shipping giant MOL (Mitsui O.S.K. Lines) has triumphantly concluded its fiscal year of 2019, displaying a robust 21% surge in net profits. MOL (Mitsui O.S.K. Lines) reported a net gain of $305 million. MOL’s (Mitsui O.S.K. Lines) performance was largely stimulated by its subsidiary liner’s operating profit of $28 million. While MOL (Mitsui O.S.K. Lines) acknowledges the inevitable influence of the pandemic’s global economic disruption on future group profitability, MOL (Mitsui O.S.K. Lines) maintains that the fiscal year under review saw minimal impact. In the domain of containerships, Tokyo-listed Japanese shipping giant MOL (Mitsui O.S.K. Lines) implemented various strategies to counter dwindling shipments, such as flexibly reducing services. As March commenced, the situation in China ameliorated, and for a time, liftings reportedly regained momentum. The performance of MOL’s (Mitsui O.S.K. Lines) dry bulk division was more varied, burdened by considerably weaker charter rates from the outset of 2020 due to declining transport demand and the overall market deceleration. However, MOL (Mitsui O.S.K. Lines) reported a slight impact on profitability as the majority of spot contracts concluded over the year had been secured before the market downturn. In the liquid cargo market, MOL (Mitsui O.S.K. Lines) noted the plunge in oil prices led to a surge in demand for tankers as floating repositories, contributing to improved market conditions. Nonetheless, Tokyo-listed Japanese shipping giant MOL (Mitsui O.S.K. Lines) anticipates that the positive ripple effects from this tanker sector recovery will primarily be reflected in profits for the forthcoming fiscal year. On another front, MOL’s (Mitsui O.S.K. Lines) vehicle transport division did not escape the pandemic’s clutches as completed car shipments were delayed during the final segment of the fourth quarter. Nevertheless, the period of impact was brief, and Tokyo-listed Japanese shipping giant MOL (Mitsui O.S.K. Lines) asserted that the repercussion on the fiscal year’s performance under review was insubstantial.
28-April-2020
Helsinki-based shipowner and operator ESL Shipping reported an operating profit of $2.5 million in Q1 2020. ESL Shipping reported revenue of $46.6 million in Q1 2020. Finnish Aspo Group’s shipping arm ESL Shipping states pandemic provoked important differences in Q1 2020. Mikki Koskinen-led ESL Shipping has boosted supplementary funds after taking a significant hit from the pandemic in Q1 2020. Helsinki-based shipowner and operator ESL Shipping’s operating circumstances worsened during Q1 2020. ESL Shipping’s revenue was decreased due to a drop in raw material prices and dry bulk charter rates in the shipping business. Dry bulk charter rates were particularly affected by the restraints caused by the pandemic in China. Finnish Aspo Group had allocated new capital securities worth around $21.8 million at a fixed interest rate of 8.75%. Finnish Aspo Group embarked on an offer to buy back the outstanding $27.8 million, 6.75% issue sold in May 2016. Furthermore, Finnish Aspo Group’s shipping arm ESL Shipping was considering whether and when to pay its 2019 dividend of $0.12 per share.
28-April-2020
Nasdaq-listed shipowner and operator Seanergy Maritime (SHIP) chartered out another capesize bulk carrier to Glencore subsidiary ST Shipping and Transportation for 3 years. Stamatis Tsantanis-led capesize player Seanergy Maritime (SHIP) chartered out 2010 built capesize bulk carrier 178K DWT MV Knightship at a rate based on the Baltic Exchange Capesize Index’s (BCI) TCE (Time Charter Average) weighted across five routes. Glencore subsidiary ST Shipping and Transportation will get the delivery of MV Knightship after Seanergy Maritime (SHIP) installs an exhaust gas scrubber in June 2020. Additionally, in November 2019, Nasdaq-listed shipowner and operator Seanergy Maritime (SHIP) chartered out capesize bulk carriers MV Premiership and MV Squireship to Glencore subsidiary ST Shipping and Transportation. MV Knightship is the third capesize bulk carrier chartered out to the same charterers. Seanergy Maritime (SHIP) developed a good relationship with Glencore subsidiary ST Shipping and Transportation. Previously, Seanergy Maritime (SHIP) signed five (5) prosperous commercial agreements with Glencore subsidiary ST Shipping and Transportation. Seanergy Maritime (SHIP) believes that the company’s fleet is well-positioned to achieve the full upside potential of the increasing trend in the capesize market.
28-April-2020
Hamburg-based Oliver Harms-led TMA Bulk Pool is increasing the company’s handysize bulker pool by teaming up with Melbourne-based bulk carrier operator Ravensdown Shipping Services Pty Ltd (RSS). Hamburg-based TMA Bulk Pool was established by two Greek and one German shipowners in February 2020. TMA Bulk Pool was established by former members of the rival Sea Stallion Pool. In February 2020, Greek shipowners M/Maritime and Ariston Navigation have collaborated with Termgroup to establish TMA Bulk Pool. TMA Bulk Pool will focus on handysize bulk carriers. TMA Bulk Pool accepted Melbourne-based bulk carrier operator Ravensdown Shipping Services Pty Ltd (RSS) as the fourth member of handysize bulker pool. Handysize drry bulk carrierr freight rates plunged two-year low. Melbourne-based bulk carrier operator Ravensdown Shipping Services Pty Ltd (RSS) controlled 2019 built handysize bulk carrier 38K DWT MV Iris Harmony entered into TMA Bulk Pool. Melbourne-based bulk carrier operator Ravensdown Shipping Services Pty Ltd (RSS) is the shipping arm of Ravensdown Limited which imports apprroximately 1 million tonnes of fertilisers per year to New Zealand. Termgroup, M/Maritime, and Ariston Navigation pulled bulk carriers out of the Aug Bolten managed Sea Stallion Pool in order to establish TMA Bulk Pool. TMA Bulk Pool started with eight (8) bulk carriers. Howeverr, TMA Bulk Pool has already increased to 20 handysize bulk carriers. Hamburg-based TMA Bulk Pool is led by Oliver Harms. Previously, Oliver Harms was the manager of at the Sea Stallion Pool by Aug Bolten. Currently, Hamburg-based TMA Bulk Pool will focus on the handysize bulk carriers. However, TMA Bulk Pool will also focus on supramax and ultramax bulk carriers. Hamburg-based Oliver Harms-led TMA Bulk Pool face the immediate challenge of expanding as the dry bulk market for smaller bulk carriers is hitting its lowest for a while. Currently, TMA Bulk Pool manages 20 bulk carriers in the pool.
28-April-2020
Vale’s strategy to significantly reduce its Very Large Ore Carrier (VLOC) fleet is anticipated to positively affect bulk carrier rates. Currently operating over 50 VLOCs, the Brazilian iron-ore behemoth has announced plans to phase out or replace 25 of these converted Very Large Ore Carriers (VLOCs), adopting a new risk management strategy as disclosed in its Q1 2020 financial report. This move, aimed at decommissioning vessels primarily converted from Very Large Crude Carriers (VLCCs) in the 1990s, is expected to lead to their scrapping, according to industry analysts. The decision marks a shift in Vale’s logistical operations, given its history of owning bulk carriers until 2019 and its significant control over a fleet of large-sized ore carriers, including the 400K valemax bulk carriers. Although specifics on the ships’ release timeline were not provided, this initiative aligns with the need for a refreshed fleet strategy, especially in the wake of Polaris Shipping’s consideration to sell up to 10 converted ore carriers chartered to Vale. Analysts predict that the removal of these 25 Very Large Ore Carriers (VLOCs) from Vale’s fleet will tighten market supply, thereby potentially elevating bulk carrier rates. With 1,827 capesize bulk carriers available to absorb the demand, the market is poised for rate improvements, especially with expectations of increased iron ore exports and a declining order book. This scenario is further supported by anticipated economic stimulus measures driving demand for high-quality iron and bulk commodities, suggesting a favorable supply-demand trajectory. Vale’s revised 2020 iron ore production guidance—lowered to a maximum of 330 million tonnes from 355 million tonnes due to the coronavirus pandemic—reflects ongoing adjustments within the company following the tragic dam disaster in January 2019. The impact of this event continues to influence Vale’s operational and strategic decisions, including the potential for an increased number of Very Large Ore Carriers (VLOCs) being sent for recycling. The announcement of Vale’s first-quarter profit of $239 million, a significant turnaround from the previous year’s $1.64 billion loss, coincides with the positive outlook on the dry bulk market’s future. The phase-out of these 25 Very Large Ore Carriers (VLOCs), with several already sold or idle, is seen as a constructive development for the industry, potentially leading to enhanced carrier rates and market dynamics. This development, alongside the daily fluctuations in capesize bulk carrier rates, underscores the evolving nature of the dry bulk shipping market.
27-April-2020
Vale is proactively managing its fleet by planning to eliminate or alter contracts for up to 25 converted Very Large Ore Carriers (VLOCs), reflecting a strategic shift in risk management aimed at bolstering operational safety and efficiency. The specifics of the vessels involved and the schedule for these modifications remain undisclosed. This initiative aligns with Polaris Shipping’s potential sale of up to 10 converted ore carriers engaged under contracts with Vale, signaling a pivot towards adopting newer, chartered-in bulk carriers and orders for new ships from Polaris, driven by considerations around the high fuel costs associated with IMO 2020 regulations and safety concerns. This move to phase out older VLOCs, built in the early ’90s, comes after the notable sinking of the MV Stellar Daisy in 2017, which claimed the lives of 22 crew members, and the grounding of the MV Stellar Banner in February following its departure from a Brazilian terminal. Vale’s involvement in the recovery efforts for the MV Stellar Banner underscores its commitment to operational safety and preventive measures. These fleet management decisions were revealed alongside Vale’s first-quarter performance, which did not meet expectations, leading to a reduction in the 2020 capital expenditure forecast from $5 billion to $4.6 billion, attributed to the impacts of the COVID-19 pandemic on construction and maintenance activities. Vale acknowledges the possibility of further adjustments to its capital spending, indicating these are not cutbacks but delays into 2021. Additionally, Vale has postponed maintenance at various facilities, anticipating a negative impact on production, especially in base metals operations—a consequence of ongoing concerns over the pandemic’s effect on production and maintenance, previously flagged by Vale in April 2020 adjustments to its production forecasts across several divisions. This comprehensive approach to addressing both safety issues and the pandemic’s broader effects highlights Vale’s strategic responses to internal and external challenges during this period.
27-April-2020
Vale is taking a significant step in its fleet management by planning to eliminate up to 25 converted Very Large Ore Carriers (VLOCs) as part of a novel risk management strategy. This decision, aimed at enhancing operational safety and efficiency, involves either the early termination or modification of existing contracts for these vessels, though specific details about the ships or the timeline for these changes have not been provided. This move comes in the wake of Polaris Shipping’s consideration to sell up to 10 converted ore carriers currently under contract with Vale, indicating a shift towards newer, chartered-in bulk carriers and newly ordered ships from Polaris, motivated by both high fuel costs under the new IMO 2020 regulations and safety considerations. Vale’s initiative to phase out these converted Very Large Ore Carriers (VLOCs), originally built in the early ’90s, follows recent safety incidents, including the tragic sinking of the MV Stellar Daisy in 2017, which resulted in the loss of 22 crew members. Additionally, the MV Stellar Banner experienced a grounding incident in February after departing from a Brazilian terminal, prompting Vale to assist in the operational and preventive efforts to remove the iron ore cargo from the ship. These fleet adjustments were announced alongside Vale’s Q1 results, which fell below expectations. The company also revised its 2020 capital expenditure forecast downwards from $5 billion to $4.6 billion due to the coronavirus pandemic, which has impacted construction and maintenance work. Vale noted the potential for further capital spending revisions, emphasizing that any reductions are not savings but postponements to 2021. Moreover, Vale has delayed maintenance stoppages at several of its plants due to the pandemic, which is expected to affect production levels, particularly in its base metals operations. This is not the first instance Vale has highlighted the potential production and maintenance challenges posed by the coronavirus outbreak, having already adjusted its 2020 production forecasts for various divisions earlier in April. This series of strategic and precautionary measures underscores Vale’s response to both internal safety concerns and the broader impacts of the global health crisis on its operations.
26-April-2020
Athens-based New York-listed shipowner and operator Diana Shipping (DSX), which possesses a fleet of 41 dry bulk vessels, recently negotiated a time charter agreement with Koch Shipping for their capesize bulk carrier, the MV Aliki, weighing in at 180,235 DWT and constructed in 2005. The charter, effective since the past Thursday, secures a daily rate of $11,300, extending at the very latest to 15 March 2021. From this arrangement, the anticipated revenue accrual stands at approximately $2.81 million for the minimum scheduled duration, extending until 1 January 2021. Notably, in April 2018, Diana Shipping (DSX) had previously contracted the MV Aliki with SwissMarine Services for a span of 20 months, at a rate of $18,000 daily. This was a time when, according to the Baltic Exchange, the daily rate for capesize bulk carriers hovered around $7,300. As of recent observations, the capesize bulk carrier rate was noted at $8,292 per day on a Monday, witnessing a slight dip from Friday’s $8,381. However, with China’s gradual return to its normal economic rhythm, there’s potential for these rates to experience an upward trajectory. Encouraging indicators emerge from China’s steel sector, evidenced by a surge in production and increasingly stable steel prices. In a recent revelation, the World Steel Association unveiled that the production of Chinese crude steel in March amounted to 78.9 million tonnes, marking an increase from February’s 74.8 million tonnes and only a minor 1.7% decline from the previous year’s March data.
26-April-2020
New York-listed Star Bulk Carriers is planning to take its shares off of the Oslo Stock Exchange (OSE) due to inadequate stock trading since 2018. In July 2018, Star Bulk Carriers listed on the Oslo Stock Exchange (OSE) after acquiring Songa Bulk’s 15 bulk carriers. Unfortunately, the Oslo Stock Exchange (OSE) listing did not bring more liquidity to the stock of Star Bulk Carriers. Star Bulk Carriers’ trading volume averaged around 11,800 per day on the Oslo Stock Exchange (OSE). According to Star Bulk Carriers, low trading volumes in the company’s shares listed on the Oslo Stock Exchange (OSE) are disproportionate to the cost of the managerial expenses related to maintaining the Oslo Stock Exchange (OSE) listing. Therefore, sole listing on the New York Stock Exchange (NASDAQ) and a de-listing from the Oslo Stock Exchange (OSE) will result in substantial cost savings and managerial eliminations. Star Bulk Carriers will have to comply with one set of regulatory requirements. Star Bulk Carriers’ plot to take its shares off of the Oslo Stock Exchange (OSE) will submit to shareholders at Annual General Meeting (AGM) on 12 May 2020. Petros Pappas led Star Bulk Carriers’ shares declined to $5.40 on 24 April 2020. Star Bulk Carriers has been on New York’s Nasdaq Global Select Market since 2007 and has a fleet of 116 ships.
23-April-2020
The renowned Japanese shipyard, Imabari Shipbuilding, presently possesses a noteworthy 7% of shares in the Oslo-listed shipowner and operator, Belships. As of now, Imabari Shipbuilding stands as the fourth predominant shareholder in the esteemed Belships, under the leadership of Lars Christian Skarsgard. Within a forthcoming span of three weeks, Belships anticipates receiving an ultramax vessel, freshly crafted by the distinguished Japanese shipbuilder. Intriguingly, part of the vessel's financial settlement was arranged through shares of the Norwegian shipowner. The erstwhile chairman and chief executive, Frode Teigen, commands a staggering 62.8% of Belships, channeled through the twin enterprises, Kontrari and Kontrazi. The esteemed Wenaas Group of Norway secures the second position, clutching an 8.5% stake, whilst the once paramount shareholder, Sverre Jorgen Tidemand, holds a close 8.2% through his enterprise, Sonata. In the blossoming month of May, Elias Kulukundis acquired a stake slightly shy of 5% in Belships, which acted as a partial payment for the sale of the notable 55,000-dwt bulker MV Sephora, constructed in 2007. Elias Kulukundis's interest in the Norwegian conglomerate Belships is channeled through his corporation, Prospero Marine. Interestingly, the Hellenic shipowner, Prospero Marine, had once voiced intentions of increasing their share in Belships. However, there are indications that Elias Kulukundis may have divested his shares, as by the previous year's close, Prospero Marine had vanished from the roster of the top 20 shareholders in Belships — a roster inclusive of investors with a mere 0.13% stake. Historical records highlight Belships as a venerable entity on the Oslo Stock Exchange, with its roots tracing back to pre-World War II days. Nonetheless, for countless decades, Belships' shares have sadly languished, notorious for their negligible trading fluidity. A monumental merger in 2018 with Teigen’s Lighthouse Group bolstered Belships' fleet, doubling its size to nearly 20 bulk carriers, predominantly supramax and ultramax. The company's trajectory has been upward, now boasting 24 bulk carriers, with new additions underway. Once upon a time, Tidemand's Sonata reigned as Belships' majority owner. However, in a strategic maneuver, the septuagenarian divested a majority of his shares to Teigen during the merger with Lighthouse. Otto Gregard Tidemand, the younger sibling of Tidemand, once held a significant share in Belships via his corporation, Tidships. However, a division of interests between the brothers transpired in 2012.
23-April-2020
Singapore and Copenhagen based diversified shipowner BW Group subsidiary company BW Dry Cargo was selling 2010 built kamsarmax bulk carrier 83K DWT MV BW Barley for around $15 million to a Scandinavian shipowner. In June 2016, BW Dry Cargo acquired MV BW Barley for around $13 million. BW Dry Cargo was selling 2010 built kamsarmax bulk carrier 83K DWT MV BW Barley for around $15 million with a 2-year charter back to Singapore-headquartered BW Group at $11,000 per day. However, the Scandinavian shipowner abandoned the transaction. BW Dry Cargo sold MV BW Barley on subjects, but unfortunately, the Scandinavian shipowner could not perform the deal. BW Dry Cargo is watching to buy more kamsarmax bulk carriers. In 2016, during the bottom of the market, BW Dry Cargo acquired nine (9) kamsarmax and supramax bulk carriers. Currently, BW Dry Cargo has a fleet of nine (9) bulk carriers. Furthermore, BW Dry Cargo has ordered seven (7) kamsarmax bulk carriers and four (4) ultramax bulk carriers at Japanese shipyards.
23-April-2020
Bergen-based shipowner and operator Gearbulk asked Japanese shipowners to accept performance-based charter rates as the first move in a substantial restructuring of Gearbulk’s charter commitments. Kristian Gerhard Jebsen-led Gearbulk explained the financial difficulties the company could suffer if the Japanese shipowners do not renegotiate charter contracts. Gantry-crane fitted open-hatch bulker operator Gearbulk requires Japanese shipowners to accept a new charter rate based on daily earnings in the G2 Ocean Pool. Norwegian shipowner and operator Gearbulk operates specialized open-hatch bulk carriers in G2 Ocean Pool with Grieg Shipping. Gearbulk requested Japanese shipowners to prolong the long-term contracts from 10-year to 20-year which will provide shipowners a fixed income. According to Norwegian shipowner and operator Gearbulk, it is utterly impossible to operate the ships at agreed rates under prevailing dry bulk market circumstances due to the post-coronavirus recession. Gearbulk’s specialized gantry-crane fitted open-hatch bulk carriers are also of little commercial use to Japanese shipowners outside the highly-specialized trades in which the G2 Ocean Pool operates. Previously, in 2016, Japanese shipowners had granted a temporary rate reduction to Gearbulk. Bergen-based shipowner and operator Gearbulk’s open-hatch bulk carriers are provided by Funada Kaiun, Chofuku Kisen, Shichifuku Gumi, Chiba Shipping, Doun Kisen, Misuga Shipping, and Marubeni.
22-April-2020
Oslo Stock Exchange-listed Norwegian shipowner and operator Belships asserts that shipping plays an instrumental role in rejuvenating the economy. Despite the upheaval unleashed by the coronavirus pandemic, Belships, a distinguished Norwegian bulk carrier owner, remains unabated in its quest for expansion. They are adamant that shipping holds the key to extricating the global economy from the quagmire instigated by the pandemic. In a profound missive to their shareholders, chairman Peter Frolich and the astute chief executive Lars Christian Skarsgard elucidated that the commencement of this decade has been tumultuous beyond measure, with Covid-19 casting a grim shadow over both health and fiscal stability. In the face of these challenges, the diligent seafarers of Belships have been sadly detained from reuniting with their kin, while the assiduous onshore staff have adeptly transitioned to a remote working milieu. However, through thick and thin, Belships has displayed remarkable resilience in sustaining its operations. A significant portion of their fleet had the foresight of contractual coverage for 2020, which has proven advantageous. The company's executive cadre emphasizes that shipping stands as a pivotal cog in the machinery of global economic progression. Oslo Stock Exchange-listed Norwegian shipowner and operator Belships remains steadfast in its belief that shipping will usher in a renaissance amidst the prevailing tumult. Their strategic focus will persistently dwell on supramax and ultramax bulk carriers, given the diversified cargo base, which presents a more enticing risk and reward proposition. With an unyielding spirit, Belships is on a relentless pursuit of growth avenues, striving to maintain its hallmark of sterling operations bolstered by an industry-defying low-cost structure. In the year 2019, Oslo Stock Exchange-listed Norwegian shipowner and operator Belships displayed unparalleled agility in navigating vessel transactions, melding ship-for-share deals with bareboat charters equipped with purchase prerogatives. This strategic maneuvering culminated in the acquisition of nine vessels while divesting two of their seasoned ships. The prestigious Belships now boasts ownership of 23 supramax and ultramax bulk carriers. Established in 2018, Belships soon amalgamated with the Lighthouse Group within a year. It's noteworthy that Belships' legacy traces back to its listing on the Oslo Stock Exchange since 1937.
22-April-2020
Japanese shipowner Doun Kisen KK (aka Doun Kisen Co. Ltd) is outraged by Norwegian open-hatch bulker operator Gearbulk’s rate reduction call. Norwegian open-hatch bulker operator Gearbulk encourages Norwegian open-hatch bulker operator Gearbulk tonnage providers to accept the pay-as-you-earn deal on charter agreements. Norwegian open-hatch bulker operator Gearbulk stated charter agreements made in earlier years are based on new building prices and rates which are no longer sustainable. Norwegian open-hatch bulker operator Gearbulk asked Japanese shipowner Doun Kisen KK (aka Doun Kisen Co. Ltd) to approve performance-based charter rates for Gearbulk’s chartered fleet as the first step in a significant restructuring of the company’s charter burdens. The agreement is drafted in a courteous and apologetic communication to the Japanese shipowners.
22-April-2020
Torvald Klaveness and Marubeni joint venture Baumarine Panamax Pool welcomed a Japanese shipowner Shoei Kisen as the company’s expansion resumes. Norwegian shipowner and operator Torvald Klaveness and Japanese trading giant Marubeni Group co-operated panamax pool Baumarine Panamax Pool by MaruKlav Management Inc. Currently, Baumarine Panamax Pool by MaruKlav Management Inc is the world’s biggest panamax pool operator. Japanese shipowner Shoei Kisen controlled 2016 built panamax bulk carrier 85K DWT MV Nadeshiko has joined Baumarine Panamax Pool by MaruKlav Management Inc. Japanese shipowner Shoei Kisen is the ownership arm of Imabari Shipbuilding. Japanese shipowner Shoei Kisen has historically had close ties with Marubeni and was the first owner of MG Harrison. Japanese shipowner Shoei Kisen is excited to be a part of a growing Baumarine Panamax Pool. Baumarine Panamax Pool by MaruKlav Management Inc increased the operated panamax bulk carrier fleet to 30. Baumarine Panamax Pool by MaruKlav Management Inc will contribute to an even closer working relationship between shipowners in the panamax pool. The panamax pool was established by a merger of Klaveness’ Baumarine with Marubeni’s MG Harrison in January. Torvald Klaveness and Marubeni joint venture Baumarine Panamax Pool satisfy the requirements of shipowners with different strategic objectives. In April, Baumarine Panamax Pool by MaruKlav Management Inc welcomed the first scrubber-fitted panamax bulk carrier. 2013 built panamax bulk carrier 82K DWT MV Bright Pegasus has joined Baumarine Panamax Pool by MaruKlav Management Inc. 2013 built panamax bulk carrier 82K DWT MV Bright Pegasus is operated by Japan’s KMNL Lodestar. Baumarine Panamax Pool by MaruKlav Management Incorporation’s fleet target is 35 panamax bulk carriers by the end of Q2 2020, and 45 by the end of 2020. In March, Taipei-based shipowner U-Ming added a panamax bulk carrier to the Baumarine Panamax Pool.
21-April-2020
London-listed shipbroker Braemar Shipping Services is anticipating an improvement in S&P (Sale and Purchase) activity as opportunities emerge after the coronavirus recession. Braemar Shipping Services’ S&P (Sale and Purchase) had observed a decrease in S&P (Sale and Purchase) activity levels during the pandemic. According to Braemar Shipping Services, the coronavirus pandemic has complicated S&P (Sale and Purchase) activity due to travel restrictions of surveyors, shipowners, and ship-managers. On the other hand, London-listed shipbroker Braemar Shipping Services’ corporate finance business, Braemar Naves has been busier and has been obtaining new fees in March 2020. Braemar Shipping Services’ corporate finance business Braemar Naves’ market share increased out of the distressed ship-financing market following the financial crash in 2008. Braemar Shipping Services elected to drop its dividend payment for 2020. Braemar Shipping Services has been keeping liquidity and bonds under vigilant oversight. Braemar Shipping Services assumes that the company has sufficient liquidity and covenant headroom. Braemar Shipping Services maintain adequate liquidity to operate efficiently. Braemar Shipping Services’ shipbroking division achieved a strong performance. Braemar Shipping Services anticipates that the world trade gradually recovers over the next quarter after the post-coronavirus recession. Braemar Shipping Services remains positive about the outlook for the shipping market. According to Braemar Shipping Services, the dry cargo market has started to improve and is anticipated to improve as Chinese imports increase. Braemar Shipping Services’ logistics division, Cory Brothers has seen a moderately healthy start to 2020 in its agency business. Braemar Shipping Services has plans to open new offices in Athens and Geneva.
21-April-2020
Singapore based shipowner and operator Eastern Pacific Shipping (EPS) sold 1993 built VLOC (Very Large Ore Carrier) 290K DWT MV Shagang Giant to green ship recycling in India. However, MV Shagang Giant demolition deal was hit by Indian coronavirus lockdown in India. MV Shagang Giant sale did not materialize as force majeure was called by the Indian authorities on ships calling at Indian ports due to coronavirus pandemic. MV Shagang Giant steamed to Karachi from India. Under Eastern Pacific Shipping’s (EPS) new corporate ship recycling policy, MV Shagang Giant was sold to India based Shree Ram ship-breaking yard which is in line with environmental, social, and governance (ESG) prospectus. MV Shagang Giant was sold to Indian ship-breaking yard Shree Ram at the beginning of 2020 for $370 per ldt (Lightweight Displacement Tonnage). Green ship-breaking yard Shree Ram is very well known as one of India’s most advanced demolition yards in terms of its environmental and safety standards. Green ship-breaking yard Shree Ram is closely connected to cash buyer NKD Maritime and has been serving giant shipowners such as Gearbulk and NYK Line. According to sale and purchase (S&P) shipbrokers, MV Shagang Giant will be scrapped in Karachi. Although, Pakistan does not have any ship-breaking yards in line with Eastern Pacific Shipping’s (EPS) environmental policies. Currently, Eastern Pacific Shipping’s (EPS) fundamental focus is the health and safety of people. Eastern Pacific’s environmental, social and governance (ESG) policy commits the company to scrap ships at green ship-breaking yards which have a statement of compliance with the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships. Unfortunately, Indian lockdown due to coronavirus has been preventing ships from beaching in India and other ship recycling centers in the subcontinent and the Far East.
21-April-2020
Norwegian open-hatch bulker operator Gearbulk requested Japanese tonnage suppliers to reduce ship charter rates. Funada Kaiun, Chofuku Kisen, Shichifuku Gumi, Chiba Shipping, Doun Kisen, Misuga Shipping, and Marubeni chartered-out specialized gantry-crane fitted open-hatch bulk carriers to Gearbulk for a long-term. Gearbulk’s business has been hit by the coronavirus pandemic. Kristian Gerhard Jebsen-led Gearbulk pronounced that previously executed agreements were based on charter rates which are no longer sustainable. According to Gearbulk, the unexpected Covid-19 pandemic added extra pressure on an already challenging global business environment. Post-coronavirus recession came on tip of a severe dry cargo market that has strived with unsustainable low freight rates for a long time. Gearbulk has performed an extensive cost reduction programme and a bank debt restructuring. Bergen-based open-hatch bulker operator Gearbulk trust that Japanese shipowners will approve this project. Currently, Gearbulk controls a mixed fleet of 70 open-hatch, other specialized and conventional bulk carriers. Gearbulk’s open-hatch bulk carriers are operated by the G2 Ocean Pool. Mitsui OSK Lines has a 49% stake in Gearbulk.
21-April-2020
Singapore-based shipowner and operator Kumiai Navigation Pte Ltd, a wholly-owned subsidiary of Japanese shipowner Kumiai Senpaku Co Ltd, has returned to CSSC Chengxi Shipyard with an order for one 37K DWT asphalt tanker and one 50K DWT MR tanker, following its February orders of two kamsarmax bulk carrier newbuildings at Nantong Cosco KHI Ship Engineering (NACKS) and one Very Large Gas Carrier (VLGC) at Kawasaki Heavy Industries; Kumiai Navigation Pte Ltd had previously taken delivery of three asphalt tankers from Chengxi Shipyard in 2017 and 2018 and currently operates a diversified fleet of 17 ships consisting of 9 bulk carriers, 3 LPG carriers, 3 asphalt tankers, 1 molten sulphur carrier, and 1 roro ship, reflecting the company’s strategic focus on expanding and modernizing its multipurpose fleet under the long-term direction of its parent Kumiai Senpaku Co Ltd.
20-April-2020
The Navios Group, a prominent Greek shipping conglomerate, is set to distribute a fleet of 14 vessels as it proceeds with the liquidation of Navios Europe II, a private shipping company within the group. This move involves Navios Maritime Holdings and Navios Maritime Acquisition, each holding a 47.5% stake, and Navios Maritime Partners with a 5% stake in the venture. The liquidation, announced in an SEC filing by the Angeliki Frangou-led Navios Maritime, is expected to be completed in the second quarter of 2020. Navios Europe II, established in the Marshall Islands in 2015, originally acquired its fleet of five sub-panamax containerships, two feeder containerships, and seven supramax, kamsarmax, and post-panamax bulkers through loans amounting to $14m from the three Navios entities, with additional funding in 2017 and working capital loans totaling up to $43.5m. A notable aspect of the liquidation includes the full release of liabilities under a $5m junior loan by Navios Europe II and the lenders. The liquidation follows the group’s earlier dissolution of Navios Europe I in November, which resulted in the distribution of 16 ships among various group companies. This strategy appears to reflect the Navios Group’s broader efforts to streamline operations and manage liquidity amidst the challenging shipping market conditions. Fearnley Securities, commenting on the liquidation, anticipates a significant liquidity boost, particularly for Navios Acquisition, which currently benefits from lucrative VLCC charters. The investment bank projects an improvement in liquidity to $90m by the end of June and suggests that repurchasing bonds trading at a discount could be a strategic move to address upcoming maturities and potentially enhance equity value. As the vessels and equity from Navios Europe II are allocated among the Navios entities, the specific distribution and its impact on each company’s portfolio and financial health remain focal points for stakeholders and industry observers. The liquidation underscores the Navios Group’s adaptive strategies in navigating the complexities of the global shipping industry.
20-April-2020
Japanese shipowner and operator NS United is planning to report impairments due to the post-coronavirus recession. NS United warned investors for falling profit during the coronavirus pandemic. NS United anticipates that the dry bulk market will remain calm until Q4 2020. NS United forecasts total revenue of $1.3 billion for the year 2020. Japanese shipowner and operator NS United urged the investors that the actual results of operating performance could be substantially different from this estimate, depending on numerous factors. In 2019, NS United announced the company was consolidating its tanker and gas carriers operations with some of its bulk carrier companies. However, capesize, tramp, and short-sea operations remain separate. NS United forecasts a net profit of $2.3 million for the year 2020. Currently, Japanese shipowner and operator NS United owns and operates a mixed fleet of 75 vessels.
20-April-2020
Aussie mining giant Rio Tinto’s iron ore exports to China decreased by 16% in Q1 2020 compared to Q4 2019. Rio Tinto’s 2020 full-year predictions of iron ore exports to China still at 334 million metric tonnes. In Q1 2020, China’s iron ore demand increased. In Q1 2020, Rio Tinto exported 73 million metric tonnes of iron ore to China, compared to 87 million metric tonnes of iron ore in Q4 2019. In February 2020, due to tropical cyclone Damian, Rio Tinto’s iron ore exports to China were severely affected however it was recovered in March 2020. Rio Tinto’s iron ore exports to China decreased 16% in Q1 2020 due to seaborne supply interruptions and strong demand from China’s steel mills despite the impact of coronavirus. Aussie mining giant Rio Tinto has also taken advantage of low freight rates in Q1 2020 for iron ore exports to China. In Q1 2020, Rio Tinto produced 13.8 million tonnes of bauxite production which is 8% higher than Q1 2019. China’s bauxite demand increased significantly in Q1 2020, as China’s domestic reserves continue to decrease in quality and quantity due to coronavirus restrictions. Australian giant miner Rio Tinto exported 9.5 million tonnes of bauxite in Q1 2020 which is 7% higher than Q1 2019. According to Rio Tinto’s report, the company will continue to mining and will take all necessary precautions while protecting the health and safety of all employees.
20-April-2020
Nasdaq-listed shipowner and operator Seanergy Maritime (SHIP) is given several more weeks to comply with reach Nasdaq’s compliance $1 share-price minimum by extending the grace period to 25 September 2020. Seanergy Maritime (SHIP) raised almost $20 million through three (3) equity offerings to institutional and retail investors in March 2020. Greek shipowner and operator Seanergy Maritime (SHIP) studies methods to maintain the minimum bid price for at least 10 business days. Nasdaq grants extension for the compliance periods for all public companies due to the extraordinary market conditions and unprecedented turmoil in US financial markets. Greek shipowner and operator Seanergy Maritime (SHIP) sold approximately $6.8 million worth of shares, as allowed by a shelf registration recorded in August 2018.
20-April-2020
Sinokor Merchant Marine has successfully sold an aged Very Large Ore Carrier (VLOC), the MV HBIS Sunrise, built in 1992, amidst challenges posed by the closure of South Asian scrapyards due to the coronavirus pandemic. The vessel was sold for $310 per Light Displacement Tonnage (LDT) on an as-is basis for delivery in Singapore, including 2,700 tonnes of bunker fuel onboard, generating gross proceeds of approximately $11.5 million for the South Korean owner. Originally purchased as the tanker MT Orpheus Orchid from Idemitsu Tanker for $15.5 million in September 2009, Sinokor converted the vessel to the MV HBIS Sunrise, with Mitsubishi Heavy Industries being the builder. The sale to a cash buyer was made on speculative terms, with intentions to keep the crew onboard for several weeks while seeking a suitable scrapyard, in light of the significant downturn in demolition rates. The global pandemic has led to a near standstill in trading, with the main ship-breaking nations of India, Bangladesh, and Pakistan having closed their facilities since March to combat the spread of the virus. This situation has created a backlog of vessels waiting to be scrapped and has frustrated contracts and canceling dates, according to GMS, the world’s largest cash buyer of ships for recycling. As India and Pakistan begin to gradually reopen their shipbreaking yards, Bangladesh’s restrictions are expected to remain until at least April 26. Despite the market’s uncertainty, some cash buyers are cautiously offering tentative prices for ships with upcoming delivery dates, anticipating where prices might settle once operations resume. Clarksons Research notes that industry predictions suggest reopening market prices could drop below $300 per LDT, but there remains hope for a recovery in recycling rates once restrictions are lifted, potentially bolstering demand for ship demolition.
19-April-2020
Limassol based Nasdaq-listed shipowner and operator Castor Maritime got more time to comply with Nasdaq minimum listing requirements. Cyprus-based Castor Maritime’s share price is too low, but Nasdaq will be flexible on minimum compliance during the corona-virus pandemic. Nasdaq posted a written notification to Castor Maritime that the company’s stock had been below $1 for 30 business days. Nasdaq informed Castor Maritime that due to the Covid-19 pandemic, temporary relief has been granted. Petros Panagiotidis led Cypriot shipowner and operator Castor Maritime aims to observe the common stock during the compliance period. Furthermore, Castor Maritime is reconsidering its options to regain compliance with the Nasdaq Capital Market minimum $1 stock price requirement. According to Nasdaq Capital Market regulations, Castor Maritime must bring stock price back above $1 for 10 straight working days. If a company cannot bring the stock price back above $1, that company may still be eligible for another 180-day grace period. Usually, in this situation, Nasdaq-listed companies carry out a stock split to boost the price by cutting the number of shares. In Q4 2019, Cyprus-based shipowner and operator Castor Maritime reported a $530,000 profit.
19-April-2020
Copenhagen-based shipowner and operator Clipper Group subsidiary Clipper Bulk axed 24 employees due to coronavirus post-recession. Danish shipowner and operator Clipper Bulk hopes that dry bulk shipping markets will normalize. Peter Norborg-led Clipper Bulk downsizing the company and reshaping its services to match the prevailing coronavirus-hit dry bulk shipping markets. Clipper Group subsidiary Clipper Bulk operates handysize, supramax, and ultramax bulk carriers. Clipper Bulk has been reducing overhead costs amid historically low freight levels prompted by the coronavirus pandemic. Clipper Group subsidiary Clipper Bulk has been attempting numerous mitigating measures to the employees concerned. Clipper Bulk wants to adapt to the new dry bulk shipping market’s reality after coronavirus post-recession. Therefore, Clipper Bulk has been downsizing the number of employees in the depressed dry bulk shipping markets. Furthermore, Clipper Bulk has been strengthening the company’s long-term partnerships with charterers, technical and commercial managers. Clipper Group subsidiary Clipper Bulk will concentrate on niche services such as Clipper Steel. Clipper Bulk has Clipper Steel which is a service to the United States and Mexico with the part-owned IPA Steel Terminal, and Compass Rose. Additionally, Clipper Bulk has China Parcel, which is a service to China and strengthened with back-hauls into the Atlantic cargoes. Moreover, Clipper Bulk will proceed in the spot market thoughtfully. Currently, Clipper Bulk operates up to 85 bulk carriers. In recent years, Clipper Bulk opted asset-light shipping model and has been diminishing the company’s owned fleet. In March 2020, Clipper Bulk acquired the world’s oldest pool, Clipper Bulkhandling Pool, from Torvald Klaveness. Clipper Bulk operates supramax and ultramax bulk carriers in Clipper Bulkhandling Pool.
19-April-2020
The Navios Group is embarking on a strategic restructuring by liquidating Navios Europe II, a subsidiary within its expansive maritime operations. This decision sees the distribution of 14 vessels, consisting of five sub-panamax containerships, two feeder containerships, and seven bulk carriers across various classes, to its primary New York-listed entities. The liquidation, directed by Angeliki Frangou, is a significant move, aiming for completion in the second quarter of 2020. This step mirrors the group’s previous action with Navios Europe I, reinforcing its commitment to optimizing operations and enhancing financial fluidity in response to the volatile shipping market. Navios Europe II, which was established in 2015 in the Marshall Islands, had its fleet financed through $14 million in loans from Navios Maritime Holdings, Navios Maritime Acquisition, and Navios Maritime Partners, with further financial support provided in subsequent years. The dissolution agreement includes the full discharge of a $5 million junior loan, marking a comprehensive approach to settling the company’s financial obligations. Fearnley Securities has highlighted the liquidation’s potential to significantly boost liquidity for Navios Acquisition, especially beneficial given its profitable VLCC charters. The investment bank anticipates a substantial improvement in liquidity by mid-2020 and advocates for the strategic repurchase of bonds at a discount as a means to manage debt effectively and potentially increase equity value. The allocation of assets from Navios Europe II to the respective Navios entities is a pivotal development, with the potential to influence the financial and operational dynamics of the group. This liquidation reflects the Navios Group’s agile strategy in managing its extensive fleet and financial assets, aiming to maintain a competitive stance within the global shipping industry amidst challenging market conditions.
19-April-2020
Divers from the Guatemalan navy unearthed concealed cocaine within an apparatus affixed to the hull of a Cypriot merchant vessel. This revelation pertained to the 31,800-dwt MV UBC Saiki (constructed in 2002), overseen by the German proprietor, Hartmann, and operated by the Cyprus-domiciled management entity, Intership Navigation. Maritime special operatives undertook a submerged survey in Puerto Santo Tomas subsequent to the vessel’s arrival from Santa Marta, Colombia on 17th April. These aquatic experts located 30 parcels of the illicit substance concealed within a metallic cylindrical receptacle, colloquially termed a “parasite”, anchored to a fin. This contraption was subsequently detached and conveyed to the mainland. The National Civil Police of Guatemala corroborated that these parcels indeed contained cocaine, as cited by Publinews Guatemala. The governing bodies have embarked on a meticulous inquiry to delineate the provenance and intended terminus of these narcotics. The vexing issue of cartels exploiting commercial sea vessels for narcotics distribution has persistently plagued shipowners, and this recent episode underscores the unaltered modus operandi of these syndicates amidst the COVID-19 pandemic. It should be underscored that there exists no insinuation regarding the crew’s complicity. Communication efforts with Intership for additional elucidation are underway. Regrettably, the corporation is no stranger to the precarious entanglements of narcotics trafficking. One of its Polish captains, Andrzej Lasota, continues to be incarcerated in Mexico, consequent to a prior year’s mishap. Mr. Lasota anticipated his legal deliberation earlier this month, hinging on the prosecutorial decision to either forsake or persist with charges. However, the judicial hiatus in Mexico, induced by the pandemic, has deferred the proceedings to the latter part of May or June. Lasota had been at the helm of the Cyprus-flagged, 32,000-dwt multirole ship, MV UBC Savannah (established in 2000), which was apprehended on 5th August of the preceding year following the discovery of 240 kg of cocaine in one of its compartments during an anchorage at Altamira, in eastern Mexico. Intership has been ardently advocating for the dismissal of charges, postulating that Mr. Lasota’s stringent adherence to maritime protocols might have inadvertently ensnared him in this quandary.
19-April-2020
Vale has adjusted its iron ore production forecast for 2020 downwards in response to the coronavirus pandemic, but the mining giant’s output is still poised to positively influence the dry bulk market. Vale announced a revision of its top production estimate to 330 million tonnes from the previously projected 355 million tonnes, following a first-quarter decrease in volume by 18% to 59.6 million tonnes and a 7% drop in sales to 51.7 million tonnes. Despite this, Clarksons Platou Securities suggests that the revised guidance signals an anticipated increase in shipments for the rest of the year. This uptick, combined with heightened stimulus spending in China and seasonal activity boosts, is expected to foster a robust recovery in freight rates, according to managing director of research Frode Morkedal. The updated forecast still represents a notable rise, averaging at least 80 million tonnes per quarter for the year’s remainder, promising a beneficial effect on long-haul trade soon. Vale’s reduced projection marks an 8% increase from the 302 million tonnes recorded last year, following the dam disaster in January 2019, indicating a positive outlook for the iron ore trade and dry bulk shipping, as noted by Arctic Securities. Capesize bulk carrier rates, which averaged $26,000 per day in the second half of 2019, now hover around $10,000 per day, presenting potential for rate and earnings improvement. Additionally, China’s steel demand resurgence, as factories and projects resume, further supports this optimistic forecast. According to Fearnleys Securities, steel inventories in China have been decreasing since mid-March, with apparent steel demand returning to 2019 levels, fueled by infrastructure activities spurred by stimulus policies. Capesize bulk carrier rates have recently surpassed $10,000 per day, reaching a timecharter equivalent (TCE) rate of $11,123 per day on the Brazil-China route, indicating a bullish sentiment in the market. Vale’s recent charter of the MV Golden Champion for transporting iron ore across the Atlantic, along with rumored fixtures for Brazil to China shipments, underscores the dynamic and optimistic outlook for the dry bulk sector amidst ongoing challenges.
19-April-2020
With the COVID-19 pandemic affecting global trade, there’s been a significant increase in demand for ship lay-up berths, and Wilhelmsen Ship Management is actively seeking new locations in Asia and Europe to accommodate this surge. Carl Schou, president and CEO of Singapore-based Wilhelmsen Ship Management, advises shipowners considering laying up their vessels due to the pandemic and the March oil price crash to act swiftly or risk missing available slots. Before the pandemic, Wilhelmsen had only a few vessels in lay-up as the shipping markets were relatively stable. For instance, in 2019, Wilhelmsen Ship Management managed just 14 laid-up ships, including offshore installations. However, recent weeks have seen a dramatic shift, with offers sent out for 50 ships, and more confirmations and requests are anticipated shortly. The demand is particularly high from segments linked to China’s trade. Since starting lay-up management in 2009, Wilhelmsen Ship Management has laid up over 200 ships, with a peak of 73 in 2017 when their main facility in Malaysia neared full capacity. They note that the ideal lay-up location is crucial for ease of reactivation. Although traditionally managing older vessels (average age 25), Wilhelmsen Ship Management is now receiving inquiries for younger, more complex ships. Current travel and crew-change restrictions make hot layups more practical while waiting for permanent cold layup locations. Wilhelmsen is utilizing its local port agency network, Wilhelmsen Ship Service, to evaluate new locations due to travel limitations. Their current facilities include Labuan, Malaysia in Asia, and southern Norway in Europe, with more locations under consideration. The main challenge lies in finding spots with sheltered waters, good anchorages, and robust shoreside infrastructure that also allows for crew changes. Wilhelmsen Ship Management has observed that many shipowners, new to the concept of laying up ships, are concerned about high reactivation costs. However, Wilhelmsen Ship Management assures that costs can be manageable with proper maintenance during the layup. Wilhelmsen Ship Management recommends using a class-certified lay-up service provider, as it can help reduce insurance premiums and ensure effective maintenance, thus minimizing reactivation costs.
18-April-2020
London-listed shipbroker Braemar Shipping Services has been missing the comfort of communication and collaboration across office desks. Generally, Braemar Shipping Services operates with all its teams on one floor for communications between shipbrokers. However, since early March 2020, shipbrokers have been based at home. Braemar Shipping Services’ S&P (Sale and Purchase) and newbuilding teams are finding it hard to work from home.
18-April-2020
Vale is revising its 2020 iron ore production forecasts downwards due to the anticipated impacts of the COVID-19 pandemic on its operations. The mining giant now estimates its output will range from 310 million to 330 million tonnes, a decrease from the previously projected 340 million to 355 million tonnes. In the first quarter, Vale saw a significant reduction in production by more than 18%, with a total of 59.6 million tonnes of iron ore produced, and a decline in sales by almost 7%, totaling 51.7 million tonnes. Despite these setbacks, Vale indicated that the pandemic had a limited effect on its operations during the first quarter. The temporary shutdown of the Teluk Rubiah Maritime Terminal in Malaysia was noted, yet it reportedly did not affect production figures. Vale has voiced concerns over the potential for increased disruptions to its operations moving forward, especially as Brazil escalates measures to control the virus spread. The company foresees a rise in absenteeism at its sites due to enhanced safety protocols or if the virus spreads in nearby communities. Further, government-imposed restrictions to curb the pandemic might constrain Vale’s operations by affecting the availability of essential labor. The resumption of operations at the Timbopeba mine in Ouro Preto, Minas Gerais, has been postponed to the second quarter of 2020, from an initial first-quarter schedule. Despite these challenges, Vale remains hopeful that a steady ramp-up in production at the S11D mine, expected to reach around 90 million tonnes in 2020, will offset the adverse effects. Comparatively, Rio Tinto, another leading mining company, experienced a 16% drop in iron ore shipments in the first quarter of 2020 compared to the final quarter of 2019, with 72.9 million tonnes shipped. However, this represented a 5% increase over the first quarter of 2019, thanks to a robust recovery across its operations in March following February’s tropical cyclone Damian disruptions. Despite the downturn, the demand for high-quality iron ore remained resilient in the first quarter, as reported by Rio Tinto.
18-April-2020
Vale has adjusted its iron ore production expectations for 2020 downward, anticipating a greater impact from the coronavirus outbreak on its operations. The company now projects its iron ore output to be between 310 million and 330 million tonnes, a reduction from its earlier forecast of 340 million to 355 million tonnes. During the first quarter, Vale experienced an over 18% drop in iron ore production, totaling 59.6 million tonnes, and a nearly 7% decrease in sales, amounting to 51.7 million tonnes. Despite these challenges, Vale reported that its operations were relatively unaffected by the pandemic in the first quarter of 2020. However, it did temporarily suspend activities at the Teluk Rubiah Maritime Terminal in Malaysia, noting that this did not impact production levels. Vale has expressed concern that the pandemic’s effects on its operations could intensify in the future, particularly as Brazil intensifies its efforts to contain the virus. The company anticipates potential increases in absenteeism at its production sites if it becomes necessary to enhance safety measures to protect employees and if the contagion escalates in communities near its operations. Further restrictions by authorities to combat the pandemic could also affect production by limiting the minimum labor force available. Production at the Timbopeba mine in Ouro Preto, Minas Gerais, is now expected to resume in the second quarter of 2020, delayed from the first quarter. However, Vale is optimistic that these negative impacts will be mitigated by the expected gradual increase in production at the S11D mine, which is projected to reach close to 90 million tonnes in 2020. In comparison, Rio Tinto, another mining giant, reported a 16% reduction in iron ore shipments in the first quarter of 2020 compared to the last three months of 2019, shipping 72.9 million tonnes. Despite this decrease, shipments were 5% higher than in the first quarter of 2019. This improvement was attributed to a strong recovery across its network in March after the disruptions caused by tropical cyclone Damian in February 2020. Despite the challenges, demand for high-quality iron ores remained strong in the first quarter, according to Rio Tinto.
17-April-2020
Netherlands based shipowner and operator Boomsma Shipping signed a deal with eConowind to install wind propulsion on one of its multipurpose (MPP) bulk carriers. Currently, Boomsma Shipping has a fleet of ten (10) multipurpose (MPP) bulk carriers that are trading mainly on European coasts. Boomsma Shipping aims to decrease carbon footprint.
eConowind is planning to install ridged wing profiles that are acting as sails in September 2020. eConowind is improving wind-assisted propulsion solutions which is leading to fuel savings and emission reductions. eConowind’s wind propulsion system is being subsidized by the Wind Assisted Ship Propulsion (WASP) project funded by the Interreg North Sea Europe programme, part of the European Regional Development Fund (ERDF).
The new wind propulsion system will be examined and evaluated till the end of 2021. Boomsma Shipping aims to reduce bunker consumption and CO2 emissions as soon as possible before the International Maritime Organization (IMO) decarbonisation goals for 2050.
With the help of the Wind Assisted Ship Propulsion (WASP) project, Boomsma Shipping will be able to calculate the cost savings, which are assumed to be at around 10%. Boomsma Shipping will contribute to reducing the carbon footprint in the shipping industry.
16-April-2020
Following a period of heightened activity in large bulker scrapping earlier this year, the market came to a pronounced halt amidst the coronavirus pandemic, which effectively closed most prominent demolition markets in the Indian sub-continent. Yet, whispers in the industry hint at a potential revival of the recycling business. Insider information alludes to ongoing discussions regarding the 268,000-dwt VLOC MT HBIS Sunrise (constructed in 1992), a possession of South Korea’s Sinokor Merchant Marine. Potential buyers have reportedly proposed roughly $310 per ldt, while sellers have reciprocated with a counteroffer of $327 per ldt, suggesting the vessel might garner approximately $12 million. Sinokor procured this ship, formerly known as MT Orpheus Orchid, from Idemitsu Tanker at a price tag of $15.5 million back in September 2009. The latest capesize to grace the shores of Bangladesh for demolition was the 172,000-dwt MV Berge Aoraki (crafted in 2000), overseen by Berge Bulk. This behemoth was noted to be acquired by Bangladesh on 20 March, marking the ninth vessel that the Singaporean magnate has relegated for dismantling in the previous annum. Regrettably, the escalating coronavirus crisis has led to the postponement, and occasionally the annulment, of numerous demolition transactions. China Steel Express showcased the 175,000-dwt MV China Steel Excellence and MV China Steel Growth (both conceived in 2002) for a scrap sale. Alas, both vessels were subsequently withdrawn from the marketplace. Crew-related complications reportedly thwarted both purchasing and vending efforts. Cido Shipping, based in Hong Kong, had also presented its trio of remaining VLOCs for dismantling, including the 265,000-dwt MV Pacific Ruby (conceived in 1993) and the 277,000-dwt MV Pacific Garnet and MV Pacific Coral (both birthed in 1995). Yet, to date, these maritime giants remain untouched by buyers. Presently, a fleet of 10 grand bulk carriers awaits their fate for scrapping in Bangladesh. These impressive vessels linger at anchor, with their official reentry into operations slated for 25 April.
16-April-2020
Singapore based shipowner and operator Diamond Bulk Carriers sold 2013 built supramax bulk carrier 58K DWT MV Thor Chaichana (ex MV Draco Ocean) to Thoresen Shipping for about $14 million. Price tag of MV Thor Chaichana (ex MV Draco Ocean) is in line with 2013 built supramax bulk carriers.
Thoresen Shipping has not been at the sale and purchase (S&P) market since 2018. In 2018, Thoresen Shipping acquired 2008 built supramax bulk carrier 58K DWT MV Maritime Unity. Thoresen Shipping has been renewing fleet and currently has a fleet 22 bulk carriers.
In Q1 2020, 23 secondhand supramax deals has been materialized. On the other hand, in Q1 2019, 33 secondhand supramax deals materialized.
After the sale of MV Thor Chaichana (ex MV Draco Ocean), Singapore based shipowner and operator Diamond Bulk Carriers has left with a fleet of 13 bulk carriers.
15-April-2020
In April 2020, giant bulker charterers BHP-owned Rightship, Cargill, Rio Tinto and giant shipowners have joined forces to establish Dry Bulk Management Standard (DBMS). Dry Bulk Management Standard (DBMS) aims to increase cooperation in dry bulk market and conclusively improve standards for dry bulk managers and crews.
Dry Bulk Management Standard (DBMS) is voluntary based programme which is designed to allow ship managers to measure their Safety Management System (SMS) against agreed industry standards. Therefore, Dry Bulk Management Standard’s (DBMS) objective is to go beyond ISM Code measures. Dry Bulk Management Standard (DBMS) constitute new regulations to increase safety standards in dry bulk sector. Currently, Dry Bulk Management Standard (DBMS) is a voluntary programme for dry bulk shipowners and operators, but Dry Bulk Management Standard (DBMS) will become a licence to trade. By the help of Dry Bulk Management Standard (DBMS), shipping companies will subsequently meet their obligations towards society. Dry Bulk Management Standard (DBMS) will assist to perceive things differently and improve shipping standards. Dry Bulk Management Standard (DBMS) will gradually raise the level of safety of dry bulk sector.
Dry Bulk Management Standard (DBMS) will assist to improve bulk shipping company’s management system by regularly measuring their general operation, classifying their weaknesses in different aspects of their operation and allowing for the implementation of best practices and Key Performance Indicators (KPIs) that will sustain them to slowly achieve their safety and environmental objectives. Dry Bulk Management Standard (DBMS) will bring self-regulation and self-assessment to dry bulk shipping. Dry Bulk Management Standard (DBMS) will bring safety culture across dry bulk industry instead of mandatory certifications.
Dry Bulk Management Standard (DBMS) will set benchmark to dry bulk company’s management system. Dry Bulk Management Standard (DBMS) will provide guidelines, expectations and targets to dry bulk shipowners and ship-managers. These guidelines will focus on thirty (30) subjects of management practice across the four (4) most serious risk areas in bulk operations:
1- Performance 2- People 3- Ship 4- Process
Dry Bulk Management Standard (DBMS) will accelerate shipowners and ship-managers’ Safety Management System (SMS) against expectations and targets without involving the burdens of excessive inspections.
Dry Bulk Management Standard (DBMS) will not be a replacement for the International Safety Management Code (ISM Code). However, Dry Bulk Management Standard (DBMS) will provide a methodical progress to motivate ship-managers to shift from minimum compliance to operational perfection. Dry Bulk Management Standard (DBMS), will improve safety standards of the dry bulk segment. Furthermore, Dry Bulk Management Standard (DBMS) will increase dry bulk market standards and will supply an obtainable benchmark for maritime perfection.
Dry Bulk Management Standard (DBMS) resembles the Oil Companies International Marine Forum (OCIMF) which manages benchmarks for the tankers. Since 1983, Oil Companies International Marine Forum’s (OCIMF’s) SIRE programme (Ship Inspection Report Programme) has been improving safety standards of tankers and offshore rigs. Dry Bulk Management Standard (DBMS) will not be a stand still programme, guidelines and standards will continuously upgrade and modernize with on-going feedback from ship-managers. Dry Bulk Management Standard (DBMS) will provide safe, compliant, environmentally friendly operations to all dry bulk market players.
Besides giant bulk charterers BHP-owned Rightship, Cargill and Rio Tinto, Greek shipowners Enterprises Shipping & Trading and Neda Maritime Agency have also been cooperating for Dry Bulk Management Standard (DBMS).
15-April-2020
Norwegian securities firm Pareto Securities upgraded New York-listed Star Bulk Carriers’ stocks to “buy” from “hold” due to strong charter coverage through Q3 2020. Even though the dry bulk market will be in dire straits because of the coronavirus recession, Pareto Securities anticipates Star Bulk Carriers to report a modest profit in 2020. Pareto Securities upholds an optimistic prospect on Star Bulk Carriers amid dry bulk market uncertainty. On 9 April 2020, Petros Pappas led Star Bulk Carriers reported that the company has covered 45% of all fleet in both Q2 and Q3 at rates of around $11,500 per day. However, Pareto Securities has downgraded its 2020 earnings per share outlook to $0.97 from $1.27. According to Pareto Securities, Star Bulk Carriers’ forward freight agreement rates will reach to $14,500 per day in Q2 2020. Furthermore, Pareto Securities expects China to normalize its economy faster than presumed and China’s economy will soon rebound. Pareto Securities calculates that Star Bulk Carriers’ net asset value (NAT) will be $9 per share by the end of 2020. On 8 April 2020, New York-listed Star Bulk Carriers has dropped Pareto Securities as a market maker in an effort to escalate the stock’s trading liquidity on the Oslo Stock Exchange (OSE). Star Bulk Carriers reported a $16 million loss for 2019. However, Pareto Securities anticipates Star Bulk Carriers to make $93 million profit for 2020. On 15 April 2020, Nasdaq listed Star Bulk Carriers’ stocks plunged $5.89 per share in the US market.
14-April-2020
Japanese shipowner and operator Kambara Kisen Co Ltd has ordered 88K DWT kamsarmax bulk carriers from Tsuneishi Zhoushan Shipyard in China, the overseas facility of Japan’s Tsuneishi Shipbuilding, which also operates a second overseas yard, Tsuneishi Heavy Industries Cebu in the Philippines; Kambara Kisen Co Ltd, functioning as the maritime transportation arm of Japan’s Tsuneishi Shipbuilding, has secured a five-year charter agreement for the new kamsarmax bulk carriers with grain importer TIS Trade Asia, reinforcing its long-term commitment to dry bulk shipping and strengthening its commercial partnerships in the Asia-Pacific region; headquartered in Ehime Prefecture, Kambara Kisen Co Ltd has a longstanding reputation in Japanese and international shipping markets, operating a diversified fleet that includes bulk carriers, car carriers, and general cargo ships, while also engaging in logistics and ship management services as part of the broader Tsuneishi Group, and despite global shipyards facing a decline in newbuilding activity since late 2018 due to the collapse of the dry bulk market, followed by the economic impact of the coronavirus recession in 2020, Kambara Kisen Co Ltd’s latest order signals renewed optimism and fleet modernization ambitions backed by strong industrial support from its parent Tsuneishi Shipbuilding.
14-April-2020
On 1 April 2020, Greek shipowner and operator Leros Management’s 2012 built supramax bulk carrier 56K DWT MV Superior was seized in Singapore due to mortgage claim by Cross Ocean AGG II. Leros Management undertake all legal actions to release MV Superior.
MV Superior was seized via an arrest warrant issued by the High Court of Singapore due to $3.77 million mortgage claim to Cross Ocean AGG II. Luxembourg registered Cross Ocean AGG II is linked to London based Cross Ocean Partners.
In February 2019, Leros Management tried to sell its entire fleet:
- MV Superior (2012 built 56K DWT)
- MV Observator (2012 built 56K DWT)
- MV Voyager (2012 built 56K DWT)
- MV Explorer (2012 built 34K DWT)
14-April-2020
An appellate court has approved Pacific Gulf Shipping’s request to maintain control over the $9.5 million posted as security in its ongoing lawsuit against Blue Wall Shipping Ltd. Pacific Gulf Shipping argued that Blue Wall Shipping Ltd. was in the process of liquidating its assets, specifically by selling off most of its bulk carriers, and that returning the security to Blue Wall Shipping Ltd. would leave no assets to claim if Pacific Gulf Shipping were to win the lawsuit. Despite CEO George Gourdomichalis of Blue Wall Shipping Ltd. refuting claims of the company shutting down, stating that buying and selling ships is routine business, court documents reveal that Blue Wall Shipping Ltd. has indeed sold six out of eight bulk carriers during the dispute. The CEOs, George Gourdomichalis and his brother Stathis Gourdomichalis, manage Blue Wall Shipping Ltd. The lawsuit stems from the 2015 abandonment of the 73K DWT panamax bulk carrier MV Adamastos off Brazil, a case in which Pacific Gulf Shipping was awarded nearly $24 million in arbitration. Efforts to enforce this award included attempting to seize the MV Vigorous in South Africa and later attaching it in Portland in late 2018. Pacific Gulf Shipping contends that Blue Wall Shipping Ltd., along with Athens-based Phoenix Shipping & Trading SA and several shipowning entities controlled by George Gourdomichalis, should be held accountable for abandoning MV Adamastos. However, a federal court in Oregon ruled that these companies were independent entities, leading Pacific Gulf Shipping to file an appeal with the Ninth Circuit Court of Appeals in San Francisco. The appellate court has now denied Blue Wall Shipping Ltd.’s motion to uphold the lower court’s decision.
14-April-2020
Istanbul based Zihni Shipping and Trading sold 2006 built panamax bulk carrier 76K DWT MV F. Ocean (ex MV Bettys Beauty) to Korean shipowner. Asaf Guneri led Zihni Shipping and Trading did not report the price tag of MV F. Ocean (ex MV Bettys Beauty). Currently, ship sale and purchase (S&P) market players are trying to cope with coronavirus pandemic related inconveniences.
Zihni Shipping and Trading was established in 1930 and one of the biggest ship agents in Turkey. Greek Lou Kollakis led Athens based Chartworld Shipping had been operating MV F. Ocean (ex MV Bettys Beauty) since 2016.
MV F. Ocean (ex MV Bettys Beauty) is acquired by Five Ocean Corp and under control of the Korea Asset Management Corporation. MV F. Ocean (ex MV Bettys Beauty) was delivered smoothly to Korea Asset Management in the mid of coronavirus pandemic which impacts ship inspections, ship surveys, crew changes. MV F. Ocean (ex MV Bettys Beauty) was built Sasebo Heavy Industries, Japan in 2006. In 2016, Zihni Shipping and Trading acquired MV F. Ocean (ex MV Bettys Beauty) for around $8 million and current market value of such a bulk carrier is around $8.5 million.
According to Zihni Shipping and Trading, coronavirus pandemic is going to severely affect shipping business due to recession in global trade and shipowners are going to operate under depressed markets.
13-April-2020
Nasdaq-listed shipowner and operator Seanergy Maritime (SHIP) sold nearly $6.8 million worth of shares offered to institutional investors. Furthermore, Seanergy Maritime (SHIP) issued warrants to buy up to 50 million shares at $0.135 each. Seanergy Maritime (SHIP) also sold 50 million shares at $0.135 each and 5.29 million over-allotment units to the deal’s underwriters for total offering proceeds of $13.7 million. Currently, Greek shipowner and operator Seanergy Maritime (SHIP) owns a fleet of ten (10) capesize bulk carriers. At the beginning of April, Seanergy Maritime (SHIP) priced an underwritten public offering at $6 million which will be utilized for general corporate purposes. In March 2020, Stamatis Tsantanis-led capesize player Seanergy Maritime (SHIP) received extensions on two loan facilities.
12-April-2020
Geneva-based Lightship Chartering named Genco Shipping & Trading MD Sune Fladberg as new CEO. Sune Fladberg had been working at Genco Shipping & Trading since May 2018. In order to have a division of labor in Lightship Chartering, previous CEO Morten Have stepped down and will recommence as a shipbroker. In a shipbroker company, working as a shipbroker and managing the company as CEO (Chief Executive Officer) is practically unachievable. Lightship Chartering took away a praiseworthy shipbroker to be a CEO. However, Lightship Chartering required an appropriate CEO to manage the company and foresee future opportunities. Sune Fladberg has been in the shipping industry for a long time. Unfortunately, Sune Fladberg appointed as CEO at a time of coronavirus recession when some offices are closed. Lightship Chartering has offices in Athens, Beijing, Copenhagen, Dubai, Geneva, Genoa, London, and Oslo. Most of the shipbrokers have been working from homes during coronavirus pandemic and they are safely connected to cargoes for its chartering operations. In March 2020, both tankers and bulk carriers had their best month since the beginning of 2020. Tanker markets have been exceptionally strong. Furthermore, Lightship Chartering has been plotting to open an office in the Middle East, India, Japan, or China until the end of 2020. Lightship Chartering has been plotting to recruit new shipbrokers to new offices. Lightship Chartering was established in 1975 and has been a panel shipbroker for the Baltic Exchange. Lightship Chartering has been active in both dry and wet markets. Lightship Chartering has been planning to enter the Sale and Purchase (S&P) market. Recently, Lightship Chartering appointed Susanne Bonde as CFO (Chief Financial Officer).
11-April-2020
London based shipbroker Clarksons rewarded employees. CEO Andi Case and CFO Jeff Woyda returned 30% of their bonuses as executive remuneration packages to reward Clarksons’ employees. In 2019, CEO Andi Case and CFO Jeff Woyda returned around $1.6 million to Clarksons’ employees as a reward. CEO Andi Case and CFO Jeff Woyda has been returning 30% of their executive remuneration packages to the employees for the last ten years. Clarksons’ CEO Andi Case has been paid a basic salary plus bonuses as executive remuneration packages. Last year, CEO Andi Case was paid £550K as a basic salary and £3 million as bonuses. In 2019, Clarksons reported a 10% increase in profit. However, London based shipbroker Clarksons was criticized by shareholders to change Clarksons’ executive remuneration policy. CEO Andi Case and CFO Jeff Woyda’s contracts were signed in 2006 which differ from current norms of London Stock Exchange-listed companies. CEO Andi Case and CFO Jeff Woyda are phenomenal managers for giant shipbroker Clarksons. CEO Andi Case and CFO Jeff Woyda are credited with developing Clarksons into the shipping industry leader today. London Stock Exchange-listed Clarksons’ Annual General Meeting (AGM) will be held online due to coronavirus pandemic. CEO Andi Case and CFO Jeff Woyda have been contributing a substantial value to the Clarksons and their contracts will not be changed. Thus, Clarksons send a very negative message to multiple stakeholders about the topic. According to Clarksons, shipbroking is a commission-based business. CEO Andi Case and CFO Jeff Woyda’s executive remuneration packages are in line with commission-based businesses. As a shipbroker and Chief Executive Officer (CEO), Andi Case has a dual role at Clarksons. Andi Case is a leading fee-earning shipbroker and chief executive officer for Clarksons’ strategy and management. Since Andi Case became the CEO of Clarksons in 2008, Clarksons’ stock price increased around ten times. In 2019, Clarksons’ Annual General Meeting (AGM) CEO Andi Case and CFO Jeff Woyda were elected by the tremendous support of shareholders.
10-April-2020
New York-listed Scorpio Bulkers has executed a 10-for-1 reverse stock split of its common shares. Last year, in January 2019, Scorpio Bulkers’ Sister company Scorpio Tankers executed a reverse stock split in order to make its shares more attractive to investors. On 3 April 2020, at AGM (Annual General Meeting), Scorpio Bulkers’ BD (Board of Directors) approved a 10-for-1 reverse stock split of its common shares. Effective from 7 April 2020, the number of Scorpio Bulkers’ common shares decreased to 7.25 million. Emanuele Lauro led Scorpio Bulkers has executed a reverse stock split in order to increase the market price of the Scorpio Bulkers’ common shares. Furthermore, the reverse stock split will improve the marketability and liquidity of the Scorpio Bulkers’ common shares and will encourage interest and trading in the Scorpio Bulkers’ common shares. In October 2018, Scorpio Bulkers acquired $100 million of a $300 million equity sale by Scorpio Tankers. As of today, Scorpio Bulkers’ $100 million investment has lost half its value under the coronavirus recession. Lately, Scorpio Bulkers sold three (3) dry bulk carriers for $54 million en-block.
10-April-2020
Norwegian shipowner and operator Torvald Klaveness merged with Japanese trader Marubeni to establish Baumarine Panamax Pool by MaruKlav Management Inc. The world’s largest panamax pool Baumarine by MaruKlav Management Inc. has added 2013 built scrubber-fitted kamsarmax bulk carrier 82K DWT MV Bright Pegasus to the pool. Furthermore, both Torvald Klaveness and Marubeni are endeavoring to add 15 more bulk carriers until the end of 2020. Baumarine Panamax Pool by MaruKlav Management Inc. targets 35 bulk carriers till the end of Q2 2020 and 45 bulk carriers till the end of Q4 2020. Amsterdam based KMNL Lodestar is the owner of the scrubber-fitted kamsarmax bulk carrier 82K DWT MV Bright Pegasus. MV Bright Pegasus is the first ship of KMNL Lodestar in the Baumarine Panamax Pool by MaruKlav Management Inc. Depending on the pool’s performance, KMNL Lodestar might contribute two (2) more bulk carriers. Baumarine Panamax Pool by MaruKlav Management Inc. commenced in January 2020 when the dry bulk markets are plunged due to coronavirus recession. Baumarine Panamax Pool’s 20% of the fleet will be scrubber-fitted panamax bulk carriers. Furthermore, Taiwan based shipowner and operator U-Ming added a bulk carrier to Maruklav Panamax Pool in March 2020.
10-April-2020
Greek shipowner and operator Newport S.A. and subsidiary Newport Chartering acquired 2004 built panamax bulk carrier 76K DWT MV Ascanius for around $9 million from Monaco-based shipowner and operator Transocean Maritime Agencies. Athens-based Newport S.A. and subsidiary Newport Chartering acquired its fourth bulk carrier in a year. In March 2020, Transocean Maritime Agencies sold another 2008 built panamax bulk carrier 76K DWT MV Omicron Atlas (ex MV Atlas B) to Athens-based shipowner and operator Omicron Ship Management. The Oshima Shipbuilding-built MV Ascanius falls into Newport S.A.’s fleet profile. Newport S.A. prefers Japanese built bulk carriers. Currently, average benchmark prices for vintage panamax bulk carriers are at their lowest since summer 2017. George Hatzis led Greek shipowner and operator Newport S.A. and subsidiary Newport Chartering controls a fleet of seven (7) handysize and two (2) panamax bulk carriers.
10-April-2020
London Stock Exchange-listed shipping fund Tufton Oceanic Assets reported an operating profit of $0.029 per share in Q1 2020. Tufton Oceanic Assets operating profit in Q1 2020 was offset by a net fair value loss of $0.035 per share in Q1 2020. Tufton Oceanic Assets Fair value losses related to containerships and bulkers were partly offset by gains for tankers. The estimated net asset value (NAV) of Tufton Oceanic Assets was $0.969 per share in 2020, compared to $0.992 per share at the end of 2019. On 21 February 2020, Tufton Oceanic Assets paid dividends. Including the dividend of $0.0175 per share paid, Tufton Oceanic Assets net asset value (NAV) total return was a -0.6% for Q1 2020. Tufton Oceanic Assets grateful that its project of portfolio diversification and strong time charter coverage continues to insulate Tufton Oceanic Assets from the present shipping market volatility triggered basically by the coronavirus recession. In March 2020, Tufton Oceanic Assets acquired a handy bulk carrier for $7 million with an eight (8) month time charter attached. The latest bulk carrier acquisition increased Tufton Oceanic Assets’ fleet to 16 vessels. In March 2020, Tufton Oceanic Assets also acquired a tanker and sold three (3) bulk carriers. Tufton Oceanic Assets’ fleet average charter length is about three (3) years and Tufton Oceanic Assets expects minimal or no void time between charters. Tufton Oceanic Assets is looking for new opportunities to invest and the company expects that coronavirus recession will bring distressed opportunities in the near future.
9-April-2020
UAE-based shipowner and operator Tomini Shipping ultimately resolved a coronavirus-related operational standoff involving 2017 built ultramax bulk carrier 64K DWT MV Tomini Destiny, reaching terms with the crew that allowed cargo discharge in Bangladesh to move forward while reinforcing Tomini Shipping’s stated emphasis on crew welfare, risk controls, and safe shipboard procedures during an unprecedented global health crisis. In the days leading up to the settlement, MV Tomini Destiny’s 22 crew members had refused to begin discharging cargo at a Bangladesh port because of coronavirus contagion fears, specifically raising concerns that dockers and other port workers would come on board the ship during the operation and increase infection risk in close quarters. Tomini Shipping said the essential interest for UAE-based shipowner and operator Tomini Shipping was the health and safety of MV Tomini Destiny’s crew, and Tomini Shipping maintained that Tomini Shipping put in place all necessary precautions to protect the crew and to manage the interface between the ship and the shore workforce. After negotiations aimed at addressing anxiety and stress among crew members linked to the coronavirus pandemic, Tomini Shipping reached a settlement that covered the crew’s concerns, paving the way for MV Tomini Destiny to commence cargo discharge once the required protective measures were implemented in coordination with the appropriate maritime authorities. United Kingdom charity Human Rights at Sea highlighted the shipboard leadership actions taken during the episode, stating that the captain of MV Tomini Destiny had efficiently reduced potential exposure by installing razor wire to prevent uncontrolled access to MV Tomini Destiny and by limiting the number of stevedores permitted to serve during the discharging operation, a measure intended to reduce contact points and improve control over shipboard movements. United Kingdom charity Human Rights at Sea also indicated that the captain of MV Tomini Destiny operated within the framework of the International Safety Management Code and the applicable Safety Management System, underscoring that the response relied on structured safety governance rather than improvised measures. The MV Tomini Destiny situation stood out because other ships in Bangladesh ports continued day-to-day operations, illustrating how the coronavirus pandemic created uneven risk tolerances and differing interpretations of acceptable safeguards across ship operators, terminals, and port communities. For Tomini Shipping, the episode also sits within the broader reality of operating a dry bulk fleet where port calls, cargo discharging, and ship-shore interactions are unavoidable and where commercial obligations can collide with health and safety imperatives when extraordinary hazards emerge. The coronavirus pandemic increasingly exposed new business risks for shipowners and operators and sharpened the tension between commercial contracts and the duty to protect crews, and the MV Tomini Destiny case reflects how those competing interests can escalate into operational refusal when crews believe safeguards are insufficient. In this instance, MV Tomini Destiny’s experienced captain invoked Master’s Authority in what was framed as the best interests of MV Tomini Destiny’s crew, and Tomini Shipping’s subsequent settlement approach suggests that Tomini Shipping was focused on restoring operations through risk mitigation and formal coordination rather than attempting to force compliance without addressing the underlying safety concerns. By resolving the dispute and restarting discharging activity after precautions were established, UAE-based shipowner and operator Tomini Shipping demonstrated how Tomini Shipping sought to balance continuity of cargo operations with a clear priority on protecting the people working on board MV Tomini Destiny.
8-April-2020
CEO George Gourdomichalis of Phoenix Shipping & Trading SA has denied allegations that Blue Wall Shipping Ltd. is winding down its operations. Despite assertions in court filings and the recent sales of bulk carriers, Gourdomichalis insists that Blue Wall Shipping Ltd. is not shutting down. He emphasized that the sale and purchase of vessels are common practices in the shipping industry and rejected claims that any director confirmed the company is selling off its fleet as part of a wind-down. Attorneys for Pacific Gulf Shipping have claimed in documents filed with the Ninth Circuit Court of Appeals that directors of Blue Wall Shipping Ltd. admitted the company was winding down during the prolonged legal dispute over the abandonment of the now-scrapped 73K DWT panamax bulk carrier MV Adamastos. Since March 2019, Blue Wall Shipping Ltd. has sold six out of its eight bulk carriers, generating over $30 million. The most recent sale reported was the 52K DWT supramax bulk carrier MV Vigorous. Pacific Gulf Shipping has seized two of Blue Wall Shipping Ltd.’s vessels, the MV Vigorous and the 30K DWT handysize bulk carrier MV Fearless, in efforts to enforce a nearly $24 million arbitration award from London. They allege that Blue Wall Shipping Ltd., managed by Athens-based Phoenix Shipping & Trading SA, along with several shipowning companies, are corporate alter egos and thus liable for the abandonment of the MV Adamastos off Brazil in 2015. The vessel, which had multiple deficiencies, was detained by authorities, broke free of its moorings, and was eventually abandoned and scrapped. The seizure of MV Vigorous in Portland, Oregon, was temporarily resolved after Blue Wall Shipping Ltd. posted $9.5 million in security. However, Pacific Gulf Shipping’s lawsuit was dismissed by US District Judge Michael Mosman in January, who ruled that Pacific Gulf Shipping failed to prove its alter ego claims. As part of their ongoing appeal, Pacific Gulf Shipping, represented by Chaos & Co, requested that the San Francisco-based appeals court prevent the release of the $9.5 million, citing the alleged wind-down of Blue Wall Shipping Ltd. They argued that Blue Wall Shipping Ltd. might sell the remainder of its fleet in 2020, potentially leaving no entity from which to collect.
8-April-2020
In 2020, shipowners with vast cash reserves will survive the coronavirus recession. Shipowners will be burning cash reserves in 2020 due to the upturn that had been expected in Q2 2020 could be delayed. In the dry bulk sector, prevailing time charter rates and FFAs (Forward Freight Agreements) in 2020 look grim throughout the year. According to our 2020 shipping outlook, shipping companies will be facing a cash burn till unforeseeable feature and many shipowners will not be able to sustain during coronavirus recession. Furthermore, due to the low bunker prices, shipowners with higher leverage, shipowners that opted to install scrubbers will face challenging markets. In 2020, publicly listed dry bulk companies are in a better financial state than the 2014-2015 downturn. Debt-free shipping companies with healthier balance sheets will easily handle the approaching storm. Small shipping companies with eco-bulk carriers and low overhead costs will be able to survive if the coronavirus recession lasts shorter than expected. Capesize spot rates averaged $4,500 per day during Q1 2020 and scrubber-fitted capesize bulk carriers averaged $10,500 during the same period. Capesize FFAs (Forward Freight Agreements) are trading at $12,500 per day for Q2 2020. Thus, this expected dry bulk shipping upturn in Q2 2020 might be reversed or delayed due to coronavirus recession. After opening Wuhan and having normalizing daily life, China’s imports seem to be increasing, but at a very slow pace. Handysize and panamax bulk carriers could still be challenged by a lack of cargo availability in Q3 2020. On the other hand, capesize bulk carriers will have enough iron ore cargoes from Brazil and Australia. But, coal cargoes will be at risk. There will be a reduction in coal exports from the United States, South Africa, and Canada in Q3 2020. We are expecting weak steel demand in Q3 2020 from importing countries such as Europe and the United States due to slow economic activities during coronavirus recession.
7-April-2020
Ulrik Andersen has been elected as CEO (Chief Executive Officer) of Golden Ocean Group. In November 2019, CEO Birgitte Ringstad Vartdal resigned from John Fredriksen backed Golden Ocean Group. Birgitte Ringstad Vartdal had been working as CFO at Golden Ocean Group since 2010. Birgitte Ringstad was selected as CEO in 2016. Previously, Birgitte Ringstad Vartdal held the position of Chairman for Sevan Drilling Ltd. and Vice President & Head-Commercial Controlling at Klaveness Torvald Rederi AS. Birgitte Ringstad Vartdal obtained a diploma from Norwegian University of Science & Technology and Heriot-Watt University. Ulrik Andersen holds a master’s degree from Copenhagen Business School and a shipping certificate from ICS (Institute of Chartered Shipbrokers). Previously, newly appointed CEO Ulrik Andersen was managing another John Fredriksen backed company Avance Gas. Before Avance Gas, Ulrik Andersen was head of shipping at Petredec LPG, Neu Gas Shipping, and Maersk VLGC Pool. New CEO Ulrik Andersen has gained John Fredriksen’s support. Golden Ocean Group’s Board of Directors (BD) are captivated with recently elected Ulrik Andersen.
7-April-2020
Piraeus based ship management company Gourdomichalis Maritime, which was established in 1969 by Stathis Gourdomichalis, acquired 2013 built supramax bulk carrier 58K DWT MV Kavo Perdika (ex MV Easter N) from a Japanese shipowner for $15 million. In Greece, Stathis Gourdomichalis was a prominent shipowner who served as President of the Union of Greek Shipowners between 1984 and 1991. Gourdomichalis Maritime has not acquired any bulk carriers from the sale & purchase (S&P) market since 2017. 2013 built supramax bulk carrier 58K DWT MV Kavo Perdika (ex MV Easter N) was delivered last week in Japan due to coronavirus pandemic ship deliveries are not performed in other parts of the world. MV Kavo Perdika (ex MV Easter N) was built in 2013 at Kawasaki Shipyard in Japan. MV Kavo Perdika is a well-built, fuel-efficient Japanese supramax bulk carrier. After the latest purchase Gourdomichalis Maritime’s fleet increased to six bulk carriers:
• MV KAVO YERAKI (2006 built 82K DWT) • MV KAVO AETOS (2003 built 52K DWT) • MV KAVO ALKYON (2005 built 75K DWT) • MV KAVO PALOMA (2007 built 75K DWT) • MV KAVO PERDIKA (2013 built 58K DWT) • MV KAVO PLATANOS (2011 built 56K DWT)
According to CEO Theodore Triphyllis, Gourdomichalis Maritime is a long-term player. MV Kavo Perdika will trade in the fleet for a long period. In July 2019, Gourdomichalis Maritime sold 2004 built panamax bulk carrier 76K DWT MV Kavo Manali to Niriis Shipping for about $8.7 million. Gourdomichalis Maritime’s fleet has been chartered through London based Gourdomichalis Chartering Limited which is a member of the Baltic Exchange.
7-April-2020
Martyn Wade led Grindrod Shipping has been planning with subsidiary IVS Bulk (Island View Shipping). Singapore listed Grindrod Shipping endeavored to boost up the fleet. On 3 June 2019, Grindrod Shipping took control of 2019 built 60K DWT bulk carrier MV IVS Phoenix. Grindrod Shipping is chartering in MV IVS Phoenix from subsidiary IVS Bulk (Island View Shipping) for at least 3 years with 2 years extra option. Grindrod Shipping has also acquired 2010 built handysize bulk carrier 33K DWT MV IVS Knot for around $13 million in a bareboat sale-and-leaseback deal serving up to 11 years. On 30 April 2019, IVS Bulk (Island View Shipping) has also sold 2005 built bulk carrier MV IVS Kawana for around $8 million. According to Grindrod Shipping’s executives, the sale-and-leaseback deal supplements a distinct dimension to Grindrod Shipping’s longstanding connection within the Japanese market. Grindrod Shipping believes that the latest transaction would attach an implied to leverage. Singapore listed Grindrod Shipping Holdings owns and operates 32 dry bulk carriers under the brand name VS Bulk (Island View Shipping). Grindrod Shipping Holdings also operates 10 tankers under the brand name Unicorn Shipping.
7-April-2020
Adam Polemis-led Athens-based shipowner and operator New Shipping Limited acquired 2005 built newcastlemax bulk carrier 203K DWT MV Captain Leonidas (ex MV Azul Fortuna) for around $15 million from Japanese shipowner Kotobuki Kaiun in November 2019. Currently, MV Captain Leonidas (ex MV Azul Fortuna) market value is around $12 million due to coronavirus pandemic. Previously, MV Captain Leonidas (ex MV Azul Fortuna) was believed to have been bought by Eyal Ofer led Zodiac Maritime. At that time, Zodiac Maritime was expanding its fleet by acquiring secondhand bulk carriers. Adam Polemis-led Athens-based shipowner and operator New Shipping Limited registered MV Captain Leonidas (ex MV Azul Fortuna) on Bliss Holding Cooperation which shares the same Athens address with New Shipping. New Shipping has bareboat chartered four (4) newcastlemax bulk carriers to German bulker giant Oldendorff Carriers. However, MV Captain Leonidas (ex MV Azul Fortuna) will be traded at the spot market. Currently, Athens-based shipowner and operator New Shipping Limited has a mixed fleet of 38 bulk carriers and crude carriers.
7-April-2020
Mats Berglund, CEO of Pacific Basin, has articulated a cautious approach towards the company’s Sale and Purchase (S&P) activities amidst the current unpredictable market conditions, primarily due to the pandemic’s impact. The Hong Kong-based shipowner and operator has decided to halt any forthcoming secondhand bulker acquisitions, emphasizing a pause in their strategy to grow their owned fleet through the purchase of larger, high-quality secondhand bulk carriers. This decision comes after Pacific Basin took delivery of three modern secondhand bulk carriers in the first quarter of 2020, expanding its owned fleet to 117 bulk carriers. Despite the challenges posed by the pandemic, Pacific Basin’s Q1 2020 earnings remained resilient, largely due to the Pacific Basin’s diversified cargo portfolio which includes agricultural products and construction materials. The initial containment measures, particularly in China, had a delayed impact on the freight market, allowing the company to maintain a degree of normalcy in operations. However, Pacific Basin anticipates a potential negative impact on its Q2 2020 earnings, with varying degrees of effect on different cargo types due to global economic slowdowns. The pandemic has also influenced operational strategies, with the reduction in bunker fuel prices reducing the necessity for slow-steaming, a contrast to the early part of Q1 2020 when ships were transitioning to more expensive very low-sulphur fuel oil (VLSFO) in compliance with IMO 2020 regulations. Pacific Basin has benefited from the significant contributions of its 28 owned scrubber-fitted supramax bulk carriers and has hedged a portion of the fuel price spread. Looking ahead, Pacific Basin notes the global dry bulk supply growth remains high, which, coupled with weak freight rates and market uncertainties, is expected to slow net fleet growth over the longer term. The pandemic has caused delays in newbuilding deliveries and an increase in scrapping during Q1 2020, though this has recently been disrupted by the closure of South Asian scrapyards due to pandemic containment measures. Pacific Basin’s strategic adjustments reflect a broader industry trend of navigating through economic uncertainties while preparing for future market recoveries.
7-April-2020
Geneve based SAM Shipping (Shipping Asset Management) has been trying to sell handysize bulk carriers. In 2009, SAM Shipping (Shipping Asset Management) was established in Switzerland for ship trading, ship operations, and ship management services. SAM Shipping (Shipping Asset Management) has built up a fleet of handy and supramax bulk carriers. But unfortunately, SAM Shipping (Shipping Asset Management) has been in a series of legal rows with financial institutions that have led to several ship arrests.
SAM Shipping (Shipping Asset Management) has been trying to offload some of its last remaining bulk carriers: • MV SAM Wolf (2012 built 57K DWT) • MV SAM Lion (2012 built 57K DWT) • MV SAM Panther (2010 built 33K DWT)
SAM Shipping (Shipping Asset Management) has been circulating IMO Tier-II bulk carriers MV SAM Wolf, MV SAM Lion, and MV SAM Panther on the Sale and Purchase (S&P) market. In March 2020, SAM Shipping’s (Shipping Asset Management) creditor Credit Suisse repossessed 2013 built supramax bulk carrier 57K MV SAM Jaguar due to the long arrest of the MV SAM Eagle. In September 2019, Malta-based FIMBank arrested Credit Suisse financed MV SAM Eagle at US Gulf due to dispute over alleged bill-of-lading fraud.
7-April-2020
Bank of Communications Financial Leasing (Bocomm Leasing) ordered eight (8) VLOC (Very Large Ore Carrier) new-buildings at state-owned Qingdao Beihai Shipbuilding Heavy Industry. Furthermore, Bank of Communications Financial Leasing (Bocomm Leasing) ordered one (1) ultra-large containership at privately owned Yangzijiang Shipbuilding. Bank of Communications Financial Leasing (Bocomm Leasing) has bareboat chartered out the four (4) VLOC (Very Large Ore Carrier) new-buildings to Kukje Maritime Investment Corp (Kmarin) on a long-term deal. South Korean shipowning and ship-management company Kukje Maritime Investment Corp (Kmarin) has chartered out the VLOC (Very Large Ore Carrier) new-buildings to service long-term COA (Contracts of Affreightment) for mining giant Vale. Additionally, Bank of Communications Financial Leasing (Bocomm Leasing) chartered out VLOC (Very Large Ore Carrier) new-buildings MV Shandong Da Cheng, MV Shandong Da Ren, MV Shandong Da Zhi, and MV Shandong Da De to Chinese state-owned shipowner and operator Shandong Shipping Corporation (SDSC).
1-April-2020
Simeon Palios’s daughter Semiramis Paliou led Diana Shipping has continued chartering out 2013 built kamsarmax bulk carrier 82K DWT MV Myrto to Cargill till June 2021 at $10,000 per day. Previously, Diana Shipping chartered out MV Myrto to Cargill for nine (9) months. Diana Shipping expects to earn around $4.48 million from kamsarmax bulk carrier MV Myrto charter deal. Currently, kamsarmax bulk carriers are earning $6,813 per day on an average time charter equivalent, down from $9,610 per day on 7 March 2020. Besides kamsarmax bulk carrier MV Myrto, Cargill has chartered in two (2) panamax, one (1) kamsarmax, one (1) post-panamax, and two (2) capesize bulk carriers from New York-listed Diana Shipping.
1-April-2020
Amidst a period of exceptional strength in VLCC (Very Large Crude Carrier) rates over the past month, there’s been a noticeable uptick in the demand for secondhand vessels. This surge is partly driven by the need for storage units, as the Saudi Arabian oil surplus reshapes the industry. Just ten days ago, Greek shipowner Charalampos Mylonas and his company, Transmed Shipping Ltd, were reported as the purchasers of the 2004-built VLCC (Very Large Crude Carrier), MT Mediterranean Glory. Constructed by Hyundai Samho, this crude tanker was acquired from Sinokor for around $31.5 million. This week, rumors indicate that Transmed Shipping Ltd is finalizing another acquisition. Athens based shipowner and operator Transmed Shipping Ltd is said to be purchasing the 302K DWT MT Yugawasan, a Mitsubishi-built vessel, for approximately $33 million. The delivery of this 15-year-old tanker, currently owned by Japanese firm NS United Kaiun Kaisha, to Transmed Shipping Ltd is expected next month. This latest purchase marks Transmed Shipping Ltd’s third VLCC (Very Large Crude Carrier) acquisition since last summer, expanding its presence in this sector to a total of five ships, all within a similar age range. This rapid growth signifies Transmed Shipping Ltd’s increasing commitment to the VLCC segment.