29-February-2020
Amidst declining freight rates, dry bulk participants persistently divest their antiquated vessels for scrapping. This heightened activity has commenced a strain on prices, causing the valuation of capesize bulk carriers to plummet from $30 per ldt to a mere $40 per ldt in recent weeks. A notable transaction unveiled is the transfer of the 172,000-dwt MV ABML Grace (constructed in 2002) from the auspices of ABY Group Holding. This vessel exchanged hands “as is” in Bangladesh for a sum of $376 per ldt, aggregating to $8.3 million. The accord regarding MV ABML Grace is believed to encompass 200 tons of bunkers. In historical context, ABY Group procured this ship from Sincere Navigation, christened at the time as MV Mineral Sines, for a princely sum of $18.4 million in June 2013. In a separate transaction, the revered Japanese conglomerate MOL divested its premier capesize bulk carrier in a span of four years. The 154,000-dwt MV Tachibana (originally constructed in 2000) has found a new abode in an Indian yard at $390 per ldt, rounding off to $7.4 million. Since its inception, MV Tachibana remained under the steadfast control of MOL and has now been earmarked for eco-conscious recycling, congruent with the Hong Kong International Convention’s guidelines for ship recycling that prioritizes environmental conservation. In a reminiscent deal from February 2016, MOL also parted ways with the 170,000-dwt bulker MV Mona Linden (constructed in 2000) at $225 per ldt. Moreover, NGM Energy of Greece orchestrated the sale of the 172,000-dwt MV Ganbei (crafted in 2001), which is now en route to Bangladesh. The finalized sum stands at $390 per ldt, totaling an impressive $8.3 million. Rewinding to an almost triennial span ago, NGM Energy had acquired the vessel from their compatriots at Centrofin for $9 million. This transaction concerning MV Ganbei also incorporates 400 tons of bunkers. To shed light on their fleet, the Moundreas-owned NGM Energy boasts seven capesize bulk carriers, averaging a venerable 17 years in age. In a parallel vein, Cido Shipping of Hong Kong has demonstrated vigor in the demolition market by divesting the 278,000-dwt MV Pacific Opal (inaugurated in 1995) for scrapping purposes in Bangladesh. This vessel commanded a price of $394 per ldt, culminating in $14.7 million. To trace its lineage, MV Pacific was initially acquired in December 2006 from SK Shipping, known then as the MV C Planner, at an investment of $42.5 million.
29-February-2020
Monaco-based Oslo OTC (Over The Counter) listed shipowner and operator GoodBulk Ltd sold 2011 built capesize bulk carrier 175K DWT MV Aquacarrier for around $17.5 million to Berge Bulk. Furthermore, John Michael Radziwill-led GoodBulk Ltd sold 2003 built capesize bulk carrier 175K DWT MV Aquajoy for around $10.5 million to Seacon Shipping Group. Recently, GoodBulk Ltd reported a net profit of $10.9 million. Monaco based shipowner and operator GoodBulk Ltd’s capesize fleet achieved an average gross Time Charter Equivalent (TCE) rate of $21,142 per day in Q4 2019. GoodBulk Ltd had fixed 78% of the company’s Q1 2020 capesize days. Oslo-listed GoodBulk Ltd is the public arm of privately-owned C Transport Maritime (CTM). Monaco-based shipowner and operator GoodBulk Ltd expressed the normalization of the Chinese economy in the trail of the pandemic will be essential to the progress in the dry cargo market. After the pandemic, the Chinese government aims to bolster infrastructure projects by providing local governments access to the bond market is anticipated to sustain iron ore demand later in 2021. Currently, Monaco-based shipowner and operator GoodBulk Ltd owns and operates 24 bulk carriers.
29-February-2020
Oslo over-the-counter (OTC) listed Pioneer Marine’s CEO Torben Janholt stepped down after three (3) years at the position. Torben Janholt has led Athens-based shipowner and operator Pioneer Marine since the commencement as a board member. Torben Janholt has determined to quit his mission and resume his personal goals. Torben Janholt was CEO (Chief Executive Officer) of Pioneer Marine for three (3) years and a board member for seven (7) years. Pioneer Marine was established in 2013. Dimitris Papoulis is appointed an interim CEO (Chief Executive Officer) of Pioneer Marine. Previously, Dimitris Papoulis was Vice President of Chartering and COO (Chief Operating Officer) of Pioneer Marine. Currently, Greek shipowner and operator Pioneer Marine owns 16 bulk carriers.
29-February-2020
New York-listed shipowner and operator Safe Bulkers (SB) declares the company has abundant cash to manage with corona-virus recession. Currently, Limassol and Athens-based Safe Bulkers (SB) has $174 million cash. Furthermore, Polys Hajioannou-led shipowner and operator Safe Bulkers (SB) postponed the remaining five (5) scrubber installations due to corona-virus recession. Cypriot shipowner and operator Safe Bulkers (SB) didn’t reveal how the company plans to use its $174 million cash, which consists of $113 million in cash and bank time deposits. New York-listed shipowner and operator Safe Bulkers (SB) expressed no dividend on the common stock, whereas Safe Bulkers (SB) has a stock repurchase programme running. Shipowner and operator Safe Bulkers (SB) is about the completion of a scrubber installation program for 20 out of its fleet of 42 bulk carriers. Safe Bulkers (SB) has installed scrubbers on15 bulk carriers and the remaining five (5) scrubber installations have been postponed due to corona-virus recession.
29-February-2020
Chinese shipowner and operator Seacon Shipping Group Ltd acquired 2003 built capesize bulk carrier 175K DWT MV Aquajoy for around $10.5 million from GoodBulk Ltd. Seacon Shipping Group Ltd prepares to carry cargoes under COA (contracts of affreightment). Furthermore, Seacon Shipping Group Ltd does not plan to install an exhaust gas scrubber. Mainly, Chinese shipowner and operator Seacon Shipping Group Ltd is a handymax and panamax shipowner and operator. 2003 built capesize bulk carrier 175K DWT MV Aquajoy is the second capesize bulk carrier that Seacon Shipping Group Ltd has purchased. In 2019, Chinese shipowner and operator Seacon Shipping Group Ltd entered the capesize sector. Seacon Shipping acquired 2002 built capesize bulk carrier 170K DWT MV Seacon Brazil (ex MV Shinyo Endeavour) for around $11 million from Shinyo International. Chinese shipowner and operator Seacon Shipping chartered out MV Seacon Brazil (ex MV Shinyo Endeavour) to Daelim Corp for one year to carry iron ore from Brazil to China. Chinese shipowner and operator Seacon Shipping Group Ltd is optimistic that the shipping market will improve. The dry bulk market has been affected by the post-coronavirus recession. At the end of 2019, Seacon Shipping Group Ltd ordered kamsarmax bulk carrier newbuildings at SSC Huangpu Wenchong Shipbuilding. Seacon Shipping Group Ltd ordered four (4) firm kamsarmax bulk carrier newbuildings and four (4) options. Seacon Shipping Group Ltd will start getting delivery of kamsarmax bulk carrier new buildings in 2022. Chinese shipowner and operator Seacon Shipping Group Ltd is paying around $32 million for each kamsarmax bulk carrier new building. Seacon Shipping Group Ltd has extended the company’s owned fleet by more than one-third in 2019 via secondhand assets and newbuildings. In 2019, Seacon Shipping acquired 14 bulk carriers. Guo Jinkui-led shipowner and operator Seacon Shipping Group Ltd has benefited from low ship prices to extend the company’s fleet. Aside from its shipowning business, Seacon Shipping Group Ltd is the third-largest ship manager in China. Currently, Seacon Shipping Group Ltd has around 120 ships under the company’s management.
29-February-2020
Nasdaq-listed shipowner and operator Star Bulk Carriers decided to expand its chartering activities in Singapore and close its Star Logistics Management office in Switzerland. In 2017, Star Bulk Carriers established Star Logistics Management as a freight-trading outfit in Switzerland. Star Logistics Management focused on grain charters for kamsarmax and supramax bulk carriers. Star Logistics Management chartered in third-party bulk carriers on periods of up to one year in order to increase Star Bulk Carriers’ overall operating capacity. However, the IMO 2020 LSFO (Low Sulphur Fuel Oil) deadline prompted a shift in Star Logistics Management’s plan. Star Bulk Carriers found it could fix its bulk carriers on time charter better than voyage basis. Hence, the Switzerland office became considerably redundant and conclusively it was shut down. Star Bulk Carriers will keep Star Logistics Management the name, but the business and office in Geneva, Switzerland was closed in January 2020. In February 2020, Star Bulk Carriers moved its chartering activities to a recently formed subsidiary called Star Bulk Chartering in Singapore. Star Bulk Chartering was established in Singapore due to a change in Star Bulk Carriers’s chartering plan. Star Bulk Chartering in Singapore is close to the Far East market and creates a time difference advantage over the competition. In Geneva, Star Logistics Management’s CEO Leonidas Giannakopoulos resigned from his position at Star Logistics Management. Furthermore, in December 2019, John Karadimos resigned from his position at Star Logistics Management. In June 2019, Eduardo Basetti resigned from his position at Star Logistics Management and joined d’Amico Società di Navigazione SpA’s Monaco office. In Geneva, Star Logistics Management was a loss-making company due to high overheads.
28-February-2020
In a year marked by turbulent freight markets, Belships reported an annual profit, executed the sale of an additional vessel, and advanced a loan repayment. The Norway-based Belships concluded 2019 on a profitable note for all four quarters, even against the backdrop of a fluctuating freight environment. Furthermore, it has recently disclosed the sale of another vessel from its fleet. The Oslo Stock Exchange-registered Norwegian shipping magnate, Belships, announced a net profit of $5.1 million for 2019, a notable decline from the $19.2 million net income of 2018. Overall, under the astute leadership of Lars Christian Skarsgard, Belships is content with its performance, navigating successfully through the unpredictable markets of the past year. The company successfully integrated nine bulk carriers into its fleet while divesting two, resulting in a net cash expenditure of under $3 million. To further its growth and simultaneously uphold fiscal discipline, Belships remains committed to showcasing its potential to stakeholders. Lars Christian Skarsgard holds a cautiously optimistic view for the forthcoming year, with plans for Belships to amplify its commercial endeavors in 2020. While the logistical obstacles associated with the International Maritime Organization (IMO) 2020 seemed daunting initially, supply and pricing are now on the path of stabilization. Having borne the expenses for fleet preparation and tank cleansing, Belships, while listed on the Oslo Stock Exchange, maintains its prior year's strategy. Expanding its commercial collaboration with Lighthouse Navigation is also on the agenda. Lighthouse Navigation, wherein Belships holds a majority stake of 50.01%, manages chartering for Belships and engages in cargo trading, liner services, and agency operations. Lars Christian Skarsgard has voiced concerns about the potential repercussions of the Covid-19 pandemic on the shipping industry, emphasizing its distinct nature from past downturns. Despite the challenges brought about by the virus, Belships highlighted Forward Freight Agreement (FFA) rates, which showed an upward trajectory from April to the third quarter. Another significant disclosure from the Oslo Stock Exchange-listed shipowner was its agreement to offload its 2007 constructed supramax bulk carrier, MV Pacific Light, which would yield a profit of $2.4 million. This vessel, the eldest in Belships' armada, is slated to embark on its bareboat charter with Turkey's Marti Shipping & Ship Management in the forthcoming months, which has committed to purchase within two years. During this charter, Belships expects a net cash influx of around $1.8 million post-loan repayments. Last year, Belships disclosed acquisitions of six ultramax bulk carriers, constructed in Japan, which are due for integration into its fleet mostly in 2020 and with the last expected in early 2021. Marti Shipping, based in Istanbul, confirmed its purchase of Belships' 2006 fabricated supramax bulk carrier, MV Beleast, in the previous year. This vessel now rechristened MV Victoria, has been chartered with a buyout agreement in two years. Ahead of schedule, Belships expedited a $6 million payment of its fleeting finance installment in January, originally due in the year's third quarter. The subsequent standard installment is anticipated in the second quarter of 2021, with the full loan maturing in 2024. Belships' operational income for the final quarter surpassed the consensus, though it trailed in Ebitda and net profit projections. The company reported an operational income of $40.4 million, surpassing Norne Securities' benchmark of $31.4 million. Likely influenced by Belships' robust positioning in the bulker sectors, Norne Securities envisages reaffirming its purchase recommendation for the company's shares. As per Norne Securities analyst Mindaugas Cekanavicius, the company's Ebitda remains a pivotal metric, especially given the variances in the Lighthouse Navigation segment. The future activity remains contingent on the unfolding situation in China, with diminished ship ordering and cargo demand observed of late.
28-February-2020
Diana Shipping (DSX), despite its endeavors, remains unsuccessful in securing a buyer for one of its grand capesize bulk carriers. However, it did triumph in obtaining a more favorable rate for a panamax bulk carrier. A potential purchaser rescinded an MOA (memorandum of agreement) for the purchase of the capacious 164,200 DWT capesize bulk carrier named MV Norfolk, constructed in 2002, which was previously declared in the twilight of January. Third-party buyers, unassociated with the firm, exercised their prerogative to annul the agreement, citing the absence of a stipulated cancelation date stemming from unpredictable circumstances, independent of the vessel’s state. This revelation was made by the eminent Greek shipowner and operator, Diana Shipping (DSX). Steps have been undertaken by Diana Shipping (DSX) to reimburse the deposit to the said buyers. This incident notably registers as the second abortive sale attempt for the enterprise helmed by Simeon Palios in the preceding weeks. Late January bore witness to Diana Shipping (DSX) announcing the unfortunate collapse of a $7.25 million transaction meant for the 73,700 DWT panamax bulk carrier, MV Calipso, built in 2006. The anticipated proprietors of MV Calipso withdrew due to complications arising from the coronavirus pandemic. On a brighter note, the renowned Athens-headquartered Diana Shipping (DSX) has inked a fixture, spanning nine to ten months, with Koch Shipping for the 74,381 DWT panamax bulk carrier, MV Coronis, constructed in 2006, with a daily rate of $8,000, commencing this Thursday. For context, MV Coronis had been previously contracted to Tongli Shipping for a daily rate of $5,300. This recent arrangement is projected to amass approximately $2.04 million in revenue over the initial nine months. Factoring in the aborted sale, the formidable fleet of Diana Shipping currently boasts 42 dry bulk carriers: a quartet of newcastlemax bulk carriers, a cadre of 14 capesize bulk carriers, a quintet each of post-panamax and kamsarmax bulk carriers, accompanied by 14 panamax bulk carriers.
28-February-2020
Hong Kong-listed shipowner and operator Pacific Basin Shipping will be concentrated on expanding the company’s owned fleet of handysize and supramax bulk carriers. CEO Mats Berglund-led shipowner and operator Pacific Basin Shipping noticed a fall in net profit in 2019 but stated the company will continue to focus on its plan of buying new vessels where Pacific Basin Shipping can reduce its chartered-in fleet. Pacific Basin Shipping mainly owns and operates handysize and supramax bulk carriers. In 2019, Hong Kong-listed shipowner and operator Pacific Basin Shipping reported a net profit of $25 million. Hong Kong-based shipowner and operator Pacific Basin Shipping profited from our TCE (Time Charter Equivalent) earnings outperformance, enlarged owned fleet, and competitive cost structure. On the other hand, Pacific Basin Shipping has been adversely affected by more fragile dry bulk market conditions and more off-hire than normal, and a record number of dry-dockings. Hong Kong-listed shipowner and operator Pacific Basin Shipping’s average handysize and supramax net daily TCE (Time Charter Equivalent) earnings were down by 4% year on year, but still managed to outperform the Baltic indices. Pacific Basin Shipping’s handysize bulk carriers earned an average TCE (Time Charter Equivalent) of $9,630 during 2019, outperforming the Baltic Handysize Index by 41%. Meanwhile, Pacific Basin Shipping’s supramax bulk carriers beat the Baltic Supramax Index by 24% with average TCE (Time Charter Equivalent) earnings of $11,720 per day. Hong Kong-listed shipowner and operator Pacific Basin Shipping has decreased the number of ships it has on long-term charter from 61 at the end of 2012 to around 18 on average for 2020. Pacific Basin Shipping replaced long-term chartered bulk carriers with owned bulk carriers. Pacific Basin Shipping will resume pursuing fleet growth and renewal strategy. Hong Kong-listed shipowner and operator Pacific Basin Shipping focus on secondhand Japanese-built bulk carriers for their fine quality and value. Pacific Basin Shipping will not order newbuildings due to their high price, low return, and uncertainty over how new environmental rules will affect future ship designs and technology. In 2019, Hong Kong-listed shipowner and operator Pacific Basin Shipping acquired six (6) supramax and two (2) handysize bulk carriers. On the other hand, Pacific Basin Shipping sold two (2) older handysize bulk carriers. By the end of Q2 2020, Pacific Basin Shipping anticipates owning 117 bulk carriers. Pacific Basin Shipping expressed the coronavirus has compounded and extended the seasonal Chinese New Year plunge in shipping demand and has disrupted logistics. However, Pacific Basin Shipping foresees that this situation will be covered soon. Hong Kong-listed shipowner and operator Pacific Basin Shipping has covered 42% and 60% of its handysize and supramax bulk carrier days for 2020. Pacific Basin Shipping predicts that demand for dry cargo shipping should be sustained this year by the normalization of cargo supply fundamentals. Pacific Basin Shipping forecasts that many larger bulk carriers will be taken out of charter for scrubber retrofits, and the majority of smaller bulk carriers will increasingly sail at decreased optimal operating speeds.
28-February-2020
Performance Shipping (PSHG) and Diana Shipping (DSX), both Athens-based New York-listed shipowners and operators, have undergone significant leadership changes as part of a succession plan initiated in October. At its annual board meeting on February 18, Performance Shipping accepted the resignations of President Anastasios Margaronis, Chief Strategy Officer and Secretary Ioannis Zafirakis, and Chief Operating Officer Semiramis Paliou. Anastasios Margaronis, Ioannis Zafirakis, and Nikolaos Petzemas also stepped down from Performance Shipping’s board. Semiramis Paliou had previously become the Deputy Chief Executive of Diana Shipping in late October as part of the succession plan initiated by her father, Simeon Palios, who is the founder, chairman, and chief executive of Diana Shipping. Andreas Michalopoulos, Deputy Chief Executive and Chief Financial Officer of Performance Shipping, replaced Ioannis Zafirakis as Secretary and Treasurer. Christos Glavanis and Aliki Paliou were appointed to fill the seats vacated by Margaronis and Petmezas on Performance Shipping’s board. Christos Glavanis also assumed the role of Compensation Committee Chairman. Aliki Paliou had been serving as an independent director of the company since February 2020. Additionally, Ioannis Zafirakis became Diana Shipping’s Interim Chief Financial Officer and Treasurer, replacing Michalopoulos, who stepped down from those roles at the annual board meeting on February 19. Ioannis Zafirakis had been a director, Chief Strategy Officer, and Secretary for Diana Shipping since August 2018. Anastasios Michalopoulos also resigned from Diana Shipping’s board, along with fellow board member Christos Glavanis. The board, which previously had 11 seats, now has nine members following these changes.
28-February-2020
Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner’s 20 seafarers were evacuated after the vessel listed off Brazil. MV Stellar Banner has water in its cargo holds. Initial reports suggested the MV Stellar Banner had a potential crack in its hull. Vale announced the MV Stellar Banner was suffered bow damage after leaving the terminal in the northern Brazil city Maranhao. Brazilian iron ore giant Vale has sent tugboats and cooperating with maritime authorities. South Korean shipowner and operator Polaris Shipping controlled MV Stellar Banner loaded iron ore at Vale’s Ponta da Madeira terminal and after the departure, the listing MV Stellar Banner was intentionally grounded by its master. According to Polaris Shipping, MV Stellar Banner made contact with an unidentified shallow seabed after leaving the loading terminal. Afterward, some ballast water tanks suffered damage, and salvage operation has commenced. MV Stellar Banner is classed by the Korean Register of Shipping (KR) and has insurance coverage from Britannia P&I Club. 2017 MV Stellar Daisy incident caused scrutiny over the Polaris Shipping’s fleet of older VLOCs (Very Large Ore Carriers) that were converted from tankers.
28-February-2020
Malta-based shipowner and operator Sterling Shipping has acquired a kamsarmax bulk carrier from BW Dry Cargo. With a keen penchant for further bulker acquisitions due to the prevailing modest prices, Sterling Shipping, an infrequent entrant to the Norwegian maritime realm, has embarked on its maiden bulk carrier acquisition: a 2013 kamsarmax bulk carrier 81K DWT MV Sterling Svea (ex MV BW Hazel) from BW Dry Cargo. CEO Christopher Fjeld-led shipowner and operator Sterling Shipping now actively surveying the market for additional purchases. The transaction was finalized this past October, though the identity of the acquirer, Sterling Shipping, has only recently surfaced. The enterprise is steered by two 32-year-old Norwegians, Christopher Fjeld and Markus Reitan, both residing in Malta. Christopher Fjeld affirmed that the kamsarmax bulk carrier constructed by SPP Shipbuilding, 2013 kamsarmax bulk carrier 81K DWT MV Sterling Svea (ex MV BW Hazel), exchanged hands for $21 million. The investment seemed alluring to Sterling Shipping CEO Christopher Fjeld as the MV Sterling Svea (ex MV BW Hazel had freshly completed a survey and circumvented a potential dry-docking expense, potentially amounting to $2 million. Malta-based shipowner and operator Sterling Shipping bears no affiliation with the London-based shipbroker, Sterling Shipping Services. MV Sterling Svea (ex MV BW Hazel) has been chartered back to BW Dry Cargo for a tenure extending a minimum of 24 months; the rate, however, remains confidential. Subsequently, BW Dry Cargo has sub-chartered the MV Sterling Svea (ex MV BW Hazel) to Glencore, which has employed the ship for grain transport. The transaction and the emergent entity remain enigmatic to shipbrokers stationed in Oslo. The technical management of MV Sterling Svea (ex MV BW Hazel) is overseen by the OSM group. Christopher Fjeld, the CEO of Sterling Shipping, articulated his contentment with the kamsarmax sector and conveyed the Sterling Shipping’s aspiration to carve its niche as an agile maritime enterprise, focusing on bulk carriers aged between three to ten years, especially considering the current subdued asset prices that promise lucrative returns. The procurement of such assets will be orchestrated through a blend of equity and borrowed capital. While both partners, Christopher Fjeld and Markus Reitan, are neophytes in the maritime domain, their previous ventures spanned real estate and industrial undertakings, predominantly in Sweden. Their recent years have seen them establish their base in Malta. Elucidating this relocation, Christopher Fjeld opined that Malta proffers a more conducive environment for nascent businesses compared to Norway, and highlighted the recent migration trend among Norwegians. Embellishing his maritime inclination, Christopher Fjeld remarked that the allure of shipping courses through his lineage.
27-February-2020
Athens-based New York-listed shipowner and operator Diana Shipping (DSX) has articulated its intention to divest its aged vessels and repurchase shares, subsequently pondering over the reinstatement of dividends. The Grecian ship proprietor and operator, Diana Shipping (DSX), remains steadfast in its prevailing operational direction, patiently awaiting the resolution of the freight market tumult instigated by the Covid-19 pandemic. As per the company’s top brass, Diana Shipping (DSX) persists in liquidating antiquated tonnage and reclaiming company equity when conditions are propitious. The fiscal year 2019 witnessed a net loss accruing to common stockholders, tallying up to $16.3 million, contrasting starkly with the preceding year’s profit of $10.8 million. Despite the contraction of Diana Shipping’s (DSX) fleet, which was reduced by six of its most senior bulk carriers, bringing the total to 42, time charter revenues experienced a modest decline of 2.4%, settling at $220.7 million. This outcome underscores the prudence of Diana Shipping’s (DSX) chartering approach, particularly their judicious choice to eschew investment in scrubbers. The enterprise’s leadership lauds its robust state, asserting that Diana Shipping (DSX) maintains a resilient position, especially when juxtaposed with competitors who expended substantial capital on scrubbers. Athens-based New York-listed shipowner and operator Diana Shipping (DSX) wasn’t immune to strategic missteps. January witnessed announcements regarding the intended sale of two bulk carriers, encompassing one panamax and one capesize. However, these endeavors unraveled as prospective purchasers recanted in light of the pandemic’s escalation in China. The firm remains ambivalent, oscillating between relisting the carriers on the secondary market or perpetuating their trade. Concerning equity repurchases, Diana Shipping (DSX) emphasizes its commitment, albeit without imperiling its public stature. 2019 saw the completion of five such transactions, with another consummated recently. Cumulatively, Diana Shipping (DSX) redeemed 17.6 million common shares, an expenditure of $59 million, a noteworthy feat considering their initial stock of 105 million common shares prior to March 2019. In a related development, investment powerhouse Jefferies recalibrated its projections for Diana Shipping (DSX) for 2020 and 2021, forecasting a loss per share of $0.13, down from $0.06, and earnings per share (EPS) of $0.05, a dip from $0.08.
27-February-2020
Nasdaq-listed shipowner and operator Eagle Bulk Shipping (EGLE) CEO Gary Vogel described the shipyard program to install the exhaust-scrubbers on most of the fleet. Generally, exhaust-scrubbers are advantageous for operators of large bulk carriers, not for the operators of supramax and ultramax bulk carriers. Solely around 6% of supramax and ultramax shipowners have installed scrubbers. 1 January 2020, IMO (International Maritime Organization) 2020 regulations would be strictly accompanied by the post-coronavirus recession that has collapsed shipping freight markets. The spreads between high-sulfur and low-sulfur bunkers have largely been in line with expectations. Eagle Bulk Shipping had contemplated having most of its scrubbers fitted by early January 2020. In the current shipping market, a scrubber premium could simply represent the difference between loss or profit for many shipowners. Eagle Bulk Shipping has appeared to execute the right decisions, lagging behind some of its competitors in instituting shareholder dividends. Eagle Bulk Shipping aims to return capital to shareholders. However, last year was a huge capital-expenditure year for Eagle Bulk Shipping with the scrubber program. Furthermore, Eagle Bulk Shipping has $70 million undrawn on its revolving loan facility.
27-February-2020
Grieg Star, a prominent player in the shipping industry, has recently made a strategic acquisition by purchasing a 22-year-old semi open-hatch bulk carrier from its competitor Westfal-Larsen. Westfal-Larsen, in its shift to focus exclusively on fully open-hatch bulkers, sold two of its semi-open hatch ships, the 50,000-dwt MV Mariana and MV Mobilana (both built in 1998), each for over $5 million. In a move that caught the industry by surprise, Grieg Star, also based in Bergen, acquired one of these Namura Shipbuilding-constructed ships, the MV Mobilana. A Grieg Star director confirmed the purchase, stating that the ship will be renamed MV Star Maia and integrated into the G2 Ocean bulk pool. This acquisition is part of a fleet renewal strategy, as the MV Star Maia will replace two older ships, the 43K DWT MV Star Gran (built in 1986) and the 40K DWT MV Star Fuji (built in 1985), which were sold for scrap last year. The director from Grieg Star explained that the MV Star Maia is considered a temporary addition to the fleet while they explore future ship designs and solutions. This purchase is seen as a step towards consolidating the open-hatch market. However, the company has not yet determined the duration for which the Star Maia will remain in its fleet. The buyer of the MV Mariana remains undisclosed. G2 Ocean, a joint venture established in 2017 by Grieg Star and Gearbulk, operates a significant fleet of 125 fully open and semi open-hatch ships. Meanwhile, Westfal-Larsen’s recent strategic moves include winding up its activities in Singapore through its holding company Skibsaktieselskapet Navigation and relocating to Norway. The company has also appointed Magne Morken as the senior vice president for its dry bulk activities. Magne Morken brings a diverse experience, having previously led gas tanker owner Solvang Shipping and chemical tanker owner Hansa Tankers. Two years prior, Lars Modin was hired as the CEO of Masterbulk, focusing on the technical operation of the ships, while Magne Morken will focus more on strategic and commercial aspects. Westfal-Larsen, established in 1905 and controlled by Rolf Westfal-Larsen and his family, has a fleet of 20 open-hatch bulk carriers with an average age of 18 years. Westfal-Larsen participates in the Saga Welco pool, operated in conjunction with NYK Line, which is one of the largest in this segment with a fleet of 53 open-hatch ships.
27-February-2020
Bermuda registered and Hong Kong-based Jinhui Shipping and Transportation Limited reported a profit of $5.6 million in Q4 2019 due to stronger bulk carrier charter rates. Additionally, Jinhui Shipping and Transportation Limited reported a revenue of $19.8 million in Q4 2019. Jinhui Shipping and Transportation Limited reported a revenue of $63.2 million for the full year of 2019. Oslo Stock Exchange-listed Jinhui Shipping and Transportation received support of Q4 2019 dry bulk shipping environment however, Jinhui Shipping and Transportation is pretty unadventurous over coronavirus repercussions. In Q4 2019, Jinhui Shipping and Transportation Limited reported average TCE (Time Charter Equivalent) rates of $11,419 per day per bulk carrier. Meanwhile, in Q4 2019, Baltic Dry Index (BDI) slumped from 1,929 to 1,090. According to Jinhui Shipping and Transportation Limited, coronavirus will dramatically affect the dry bulk shipping market in 2020. Post-coronavirus recession’s negative backdrop translated to much-reduced action in the dry bulk freight market. Currently, Hong Kong-based Jinhui Shipping and Transportation Limited has a fleet of eighteen (18) bulk carriers.
27-February-2020
Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner has not leaked oil. MV Stellar Banner’s master intentionally grounded the VLOC (Very Large Ore Carrier) off the coast of Brazil. MV Stellar Banner began taking on water and listing severely about 65 nautical miles away from Vale’s Ponta da Madeira iron ore loading terminal. South Korean shipowner and operator Polaris Shipping has been in close collaboration with Vale. Polaris Shipping and Vale has been mobilizing all available assets in Brazil to eradicate any potential risk from the oil spillage. Polaris Shipping has sent an anti-pollution team to the site of the incident to strictly monitor the situation. South Korean shipowner and operator Polaris Shipping has been performing all efforts and resources to accelerate salvage operations of MV Stellar Banner. Brazilian mining giant Vale has also hired salvage specialists, in addition to those hired by Polaris Shipping, to assist with discharging oil from the MV Stellar Banner.
27-February-2020
New York-listed shipowner and operator Star Bulk Carriers decided to shift its chartering activities to Singapore from Geneva, Switzerland. Star Bulk Carriers shifted chartering activities to a freshly formed entirely owned subsidiary under the name of Star Bulk Chartering Singapore Pte. In 2017, Star Bulk Carriers established Star Logistics Management in Geneva, Switzerland. Star Logistics Management was established in order to further expand the chartering potential of Star Bulk Carriers for kamsarmax and supramax bulk segments. In December 2019, Star Bulk Carriers’ subsidiary company Star Bulk Chartering Singapore Pte. started hiring new shipbrokers. Zheng Yang Rebecca was hired by Star Bulk Chartering Singapore Pte. as chartering manager. Previously, Zheng Yang Rebecca was working at Bary Chemical for eleven (11) years as a chartering manager.
27-February-2020
Vale has sought assistance from Petrobras to address a potential oil leak from the MV Stellar Banner, operated by Polaris Shipping, now partially submerged off Brazil’s coast. The incident involving the 300K DWT iron ore carrier, which occurred 100 km from Maranhao near the Ponta da Madeira Maritime Terminal, prompted concerns of an environmental hazard. Vale requested Petrobras dispatch an oil spill recovery vessel to manage any potential spills from the vessel, stranded since early Wednesday. The Brazilian environmental authority has approved the mobilization of response vessels near Maranhao’s coast. Vale is also engaging salvage experts, supplementing Polaris Shipping’s efforts, to hasten the oil removal process and has called for offshore booms to contain possible spillage. Efforts to ensure personnel can be transported to the site are underway, following the safe evacuation of 20 crew members. Initial reports indicated the vessel might have a hull crack after sustaining bow damage upon departure. Polaris Shipping, listed as the owner and manager, clarified that the observed oil sheen was from dead oil on deck rather than a fuel tank leak, leading to the decision not to deploy an oil fence at that time. However, anti-pollution teams are on site as a precaution, monitoring the situation closely. A salvage team has been dispatched for a thorough assessment to ensure safe removal of the ship, prioritizing environmental protection. Polaris Shipping has dedicated resources to prevent environmental damage, asserting that the MV Stellar Banner’s cargo holds remain intact and the situation is under control. The ship is believed to have struck an unidentified shallow seabed upon leaving Maranhao, resulting in damage to some ballast water tanks and void spaces, with further assessments pending to ascertain the full extent of the damage. Polaris Shipping has countered claims of a leakage as speculative.
26-February-2020
Singapore-based shipowner and operator Grindrod Shipping (GRIN) anticipates positive fundamentals in both the dry bulk and product tanker sectors. New York-listed shipowner and operator Grindrod Shipping (GRIN) reported a second-half loss of $16.4 million. Grindrod Shipping (GRIN) fork out $44.2 million for the IVS Bulk stake. Previously, Singapore-based shipowner and operator Grindrod Shipping (GRIN) increased its fleet following the purchase of the outstanding portion of subsidiary company IVS Bulk. Singapore-based shipowner and operator Grindrod Shipping’s (GRIN) handysize bulk carriers earned an average TCE (Time Charter Equivalent) earnings of $8,551 per day. Singapore-based shipowner and operator Grindrod Shipping’s (GRIN) supramax and ultramax bulk carriers earned an average TCE (Time Charter Equivalent) earnings of $13,624 per day in H2 2019. Grindrod Shipping (GRIN) outperformed the Baltic Handysize TC Index (BHSI) and Baltic Supramax-58 TC Index (BSI-58) benchmarks by about 8.4% and 22.9% respectively. On the other hand, Grindrod Shipping’s (GRIN) MR product tankers underperformed the Clarksons’ Average MR Clean Earnings per day assessment of $15,033 by about 4.2% in H2 2019. CEO Martyn Wade-led New York-listed shipowner and operator Grindrod Shipping’s (GRIN) operations in H2 2019 were stronger than in H1 2019 across the preponderance of financial metrics mirroring stronger dry bulk and product tanker markets during the period. New York-listed shipowner and operator Grindrod Shipping (GRIN) expressed that the current shipping market circumstances deliver exceptional near-term challenges as the consequence of the coronavirus which has disrupted the shipping market and trading patterns for both the dry bulk and product tanker markets. Grindrod Shipping (GRIN) communicated that the low dry bulk order book associated with shipyard delays contains fleet supply, while there seems to be a constant demand for minor bulks which are the essential shipments for Grindrod Shipping’s (GRIN) ships. Singapore-based shipowner and operator Grindrod Shipping (GRIN) expects the product tanker market to stay healthy given an anticipated increase in demand as the consequence of the boost in refining capacity and the dislocation between refiners and end users, correlated with a low tanker order book in shipyards.
26-February-2020
Vale has called on Petrobras for assistance following a potential oil leak from the MV Stellar Banner, managed by Polaris Shipping, which is currently partially submerged off the coast of Brazil. This incident involving the 300K DWT iron ore carrier, located 100 km from Maranhao near the Ponta da Madeira Maritime Terminal, has raised environmental concerns. In response, Vale requested that Petrobras send an oil spill recovery vessel to address any potential spillages from the stricken vessel, which has been adrift since Wednesday morning. The Brazilian environmental authorities have authorized the deployment of response vessels to the vicinity of Maranhao’s coast. Furthermore, Vale is collaborating with salvage experts to complement Polaris Shipping’s removal efforts and has sought offshore booms to mitigate any spillage. Measures are being taken to facilitate the transfer of personnel to the site, following the successful evacuation of 20 crew members from the ship. Initial investigations suggested that the vessel may have suffered a hull breach due to bow damage upon its departure. However, Polaris Shipping, the registered owner and manager of the vessel, reported that the slight oil sheen observed was due to residual dead oil on deck, not a leak from the fuel tank, thus postponing the installation of an oil fence. Nonetheless, anti-pollution teams have been deployed as a precaution to closely monitor the situation. A specialized salvage team is on-site conducting a detailed assessment to ensure the ship’s safe removal, with a strong emphasis on environmental safety. Polaris Shipping has committed significant resources to mitigate any environmental impact, maintaining that the MV Stellar Banner’s cargo holds are secure and the situation is stable. The ship is suspected of hitting an uncharted shallow seabed after leaving Maranhao, causing damage to certain ballast water tanks and void spaces. The extent of this damage is still being evaluated. Polaris Shipping has described reports of a leak as speculative.
26-February-2020
New York-listed shipowner and operator Safe Bulkers (SB) believes that the shipping markets will bounce back vigorously. Limassol and Athens-based Safe Bulkers (SB) will think of consuming some of the company’s cash on purchasing large bulk carriers. Polys Hajioannou-led shipowner and operator Safe Bulkers (SB) believes that some large bulk carriers are reasonable at current prices and freight rates will enhance broadly later in 2020. New York-listed shipowner and operator Safe Bulkers (SB) believes that shipping markets are coming to the pinpoint where it would be worth investing in large bulk carriers. Currently, Safe Bulkers (SB) has $174 million in cash, and looking for opportunities is produced by the coronavirus pandemic. Safe Bulkers (SB) is known to be a counter-cyclical asset player. Polys Hajioannou-led shipowner and operator Safe Bulkers (SB) is bullish on the market’s prospects. Currently, Limassol and Athens-based Safe Bulkers (SB) has a fleet of 42 bulk carriers.
25-February-2020
New York-listed shipowner Genco Shipping & Trading projects to sell 10 more handysize bulk carriers as part of a fleet renewal plan. John Wobensmith-led Genco Shipping & Trading anticipates up to $85 million in impairment costs during Q1 2020. Up to now, Genco Shipping & Trading has sold 15 vintage bulk carriers. Genco Shipping & Trading declared intentions to sell the additional handysize bulk carriers. New York-listed shipowner Genco Shipping & Trading wants to focus on primarily weighted towards capesize, ultramax, and supramax bulk carriers. Genco Shipping & Trading plans to repayment of debt and the acquisition of modern, high spec bulk carriers. In Q1 2020, Genco Shipping & Trading sold 2005 built handysize bulk carrier 28K DWT MV Genco Charger, 2003 built handysize bulk carrier 28K DWT MV Genco Challenger, 2006 built handysize bulk carrier 28K DWT MV Genco Champion, 2007 built panamax bulk carrier 76K DWT MV Genco Raptor. John Wobensmith-led Genco Shipping & Trading intends to sell 2007 built panamax bulk carrier 76K DWT MV Genco Thunder. In Q4 2019, Genco Shipping & Trading has reported a $0.88 million profit. According to Genco Shipping & Trading, the dry bulk shipping sector is currently experiencing a short-term, seasonal decline which has been further affected by the post-coronavirus recession. In Q1 2020, Genco Shipping & Trading posted a $0.175 dividend per share.
25-February-2020
Oaktree Capital Management backed Star Bulk Carriers fixed employment for about 72.3% of the days in Q1 2020 at average time charter equivalent (TCE) rates of $12,580 per day. Star Bulk Carriers harvesting the earnings of significant scrubber installation program to the entire fleet. At the weak dry bulk market in Q1 2020, Petros Pappas led Star Bulk Carriers chartered out over 65% of its capesize and newcastlemax bulk carriers at close to $20,000 per day. During the record-low capesize and newcastlemax spot rates, Star Bulk Carriers benefits from timely scrubber investments. Strong charter rates had justified Star Bulk Carriers’ scrubber program. Till February 2019, Star Bulk Carriers has installed scrubbers to 90 bulk carriers out of the 116 bulk carriers. Since the beginning of 2020, Star Bulk Carriers has been observing the commercial and operational benefits of its scrubber investment. Star Bulk Carriers have been anticipating completing the scrubber installation program by April 2020 due to the coronavirus pandemic that caused delays in Chinese shipyards. NASDAQ listed Star Bulk Carriers reported a net profit of $23.5 million in Q4 2019 versus the $11.75 million in Q4 2018. Star Bulk Carriers reported adjusted earnings per share came in at $0.36 in Q4 2019. Star Bulk Carriers reported average charter rates as $15,535 per day in Q4 2019. Average charter rates as $15,535 per day is reportedly about 40% above all-in cash break-even levels of Star Bulk Carriers.
20-February-2020
Osaka-based shipowner Santoku Senpaku (Santoku Senpaku KK) was established by Masashi Taga in 1972. Masashi Taga bought a secondhand general cargo ship to carry spare parts for Mazda. Today, Santoku Senpaku (Santoku Senpaku KK) owns a mixed fleet of bulk carriers. Santoku Senpaku (Santoku Senpaku KK) used to own some tankers but exited from the tanker market. Santoku Senpaku (Santoku Senpaku KK) has been remaining against speculative ordering and prefers long-term charterers. Currently, conservative Japanese shipowner Santoku Senpaku (Santoku Senpaku KK) controls around 100 ships.
19-February-2020
Amid the somber rate scenarios this year, the market for the demolition of large bulkers has witnessed a resurgence. However, several industry connoisseurs opine that this upswing may be ephemeral, hindered by a scarcity of cash purchasers, crew constraints in South Asian dismantling countries, and the looming possibility of a market rebound. The recent sales invigorated the notion that the scrap market might be experiencing a renaissance, especially after a lackluster quarter where ship proprietors, anticipated to discard older tonnage due to the exorbitant costs of the International Maritime Organization 2020 (IMO 2020) compliant fuel, failed to act on it. In the dawn of the year, Alpha Bulkers Shipmanagement is said to have divested the MV Maria A Angelicoussi, a 169,000-dwt capesize bulk carrier from 2001, for $408 per ldt, while Golden Union parted with the MV Crassier, a 172,500-dwt capesize bulk carrier from 2000, at a rate oscillating between $402 ldt and $406 per ldt. Recently, Berge Bulk has sent a minimum of two VLOCs to scrap, and Polaris Shipping is deliberating the sale of up to ten VLOCs from the dawn of the 1990s, likely destined for the wrecking yards. Yet, Vagelis Chatzigiannis, a senior trader at GMS, stated that the number of capesizes or larger bulkers repurposed this year is significantly inferior, less than half, in fact, to those noted in the analogous phase of 2016—a time of market effervescence. Typically, as vessels approach the twilight of their operational lives, shipowners transfer them to cash purchasers, who subsequently vend them to dismantlers. However, the cadre of cash buyers possessing the necessary liquidity for procuring these colossal ships seems to be dwindling. Furthermore, there is an undercurrent of hesitancy among current players to acquire additional ships, given the downward pressure on rates due to stagnant steel prices and broader economic trepidations. Clarksons’ data suggest that the dismantling price for capesize bulk carriers has depreciated by 6% in India and 2.5% in Bangladesh in the preceding month. Such conditions hardly inspire speculative endeavors among the majority of cash buyers. Additionally, the onslaught of the coronavirus epidemic is poised to further constrict volumes. India has forbidden entry to non-nationals who have traversed China post-15 January, and Bangladesh has ceased granting immediate visas to Chinese nationals.
19-February-2020
Euroseas Ltd (ESEA), a prominent container ship company based in Athens and listed in New York, has reiterated its decision to avoid installing exhaust gas scrubbers in response to the upcoming Marpol Annex VI regulations, which mandate a reduction in bunker sulphur content to 0.5% by 2020. CEO Aristides Pittas has highlighted the company’s stance on relying on compliant fuel instead, citing concerns about the environmental and operational risks associated with scrubber technology. This decision aligns Euroseas with a more conservative approach amidst a shipping industry rush, where many have invested heavily in scrubbers as a solution to meet the International Maritime Organization (IMO) 2020 sulphur cap requirements. Pittas emphasized the particular risk scrubbers pose to smaller vessels, a category that includes Euroseas’ fleet of 10 feeder boxships and one intermediate containership. With ongoing uncertainties about the effectiveness and regulatory acceptance of scrubbers, especially in sensitive regions like the Arctic where heavy fuel use might face outright bans, Euroseas opts for a strategy that avoids potential future complications. This cautious approach reflects the Euroseas Ltd’s (ESEA) prioritization of long-term environmental considerations over short-term compliance solutions.
19-February-2020
Greek shipping tycoon Peter Livanos backed DryLog bulks up with the acquisition of freight trader ED&F Man Shipping. Greek Peter Livanos-led Ceres Shipping is a majority shareholder of both DryLog and GasLog. DryLog has acquired ED&F Man Shipping’s freight trading desk. Previously, DryLog has acquired 50% of ArcelorMittal’s shipping subsidiary Global Chartering Ltd. ED&F Man Shipping has been acquired by the Livanos company and will change its name to DryLog Trading. ED&F Man Shipping has offices in London and Singapore. ED&F Man Shipping’s offices will continue their business in London and Singapore. During the transition of ED&F Man Shipping into DryLog Trading, there will be no interruption in service levels. Currently, ED&F Man Shipping operates around 35 time-chartered geared bulk carriers. ED&F Man Shipping is majority-owned by Agman Holdings, which is itself owned by group company ED&F Man Holdings. Currently, Greek Peter Livanos-led DryLog owns and operates 37 bulk carriers and is the dry shipping arm of Peter Livanos’ Ceres Shipping. In December 2019, ArcelorMittal sold a 50% stake of its wholly-owned shipping division Global Chartering Ltd to Peter Livanos-led DryLog. Global Chartering Ltd joint venture is going to operate around 28 bulk carriers.
19-February-2020
Bermuda-registered, Norway-based dry bulk shipping company Golden Ocean Group has had scrubber retrofits postponed in China due to the coronavirus. John Fredriksen-backed Golden Ocean Group announced that the company has now completed 14 of 23 planned installations of scrubbers. The remaining 9 scrubber installations have been extended due to the impact of the coronavirus in China. In Q4 2019, Golden Ocean Group completed charter amendments for seven (7) capesize bulk carriers that are leased from John Fredriksen-backed SFL Corporation, whereby SFL Corporation will finance the scrubber investments earlier published by the Golden Ocean Group in exchange for improved charter rates. Due to coronavirus, commodity-related supply chains may become disrupted. In Q4 2019, Golden Ocean Group reported net earnings of 41 million and revenue of $245 million. Currently, Golden Ocean Group operates around 79 bulk carriers. Golden Ocean Group’s revenue improvement was principally pushed by higher average freight rates on bulk carriers that were chartered in for trading in the spot market. In Q4 2019, Golden Ocean Group reported an average TCE (Time Charter Equivalent) rate of $21,668 per day. John Fredriksen-backed Golden Ocean Group’s stable performance maintained in Q4 despite a weakening charter rate environment. Norway-based dry bulk shipping company Golden Ocean Group focuses on sustaining cost-effective operations and a solid balance sheet and liquidity position. According to Golden Ocean Group, capesize bulk carrier segment with the most prominent leverage to enhancing shipping market conditions. John Fredriksen-backed Golden Ocean Group is confident of the medium to longer-term development of dry bulk shipping demand.
19-February-2020
Athens-based shipowner and operator Nicholas G Moundreas’s (NGM) subsidiary NGM Energy SA sold 2001 built capesize bulk carrier 172K DWT MV Ganbei for demolition. Nicholas G Moundreas’s (NGM) subsidiary NGM Energy SA sold MV Ganbei as is in Singapore at around $390 LDT (Light Displacement Tonnage). The price is declared to include 400 tons of bunkers. Nicholas G Moundreas’s (NGM) subsidiary NGM Energy SA sold MV Ganbei to a Bangladesh shipbreaker. This is a reasonable deal for Nicholas G Moundreas’s (NGM) subsidiary NGM Energy SA, which is now earning an estimated $8.4 million for MV Ganbei. Nicholas G Moundreas’s (NGM) subsidiary NGM Energy SA acquired 2001 built capesize bulk carrier 172K DWT MV Ganbei three years ago for around $9.5 million. Bulker carrier demolition numbers have been going through the roof as freight rates collapse. Scrapping of bulk carriers increased by 129% year-on-year in terms of tonnage to 2.4 million DWT (Deadweight Tonnage). Capesize bulk carriers account for the extensive majority of that ship demolition activity. Approximately 2 million DWT (Deadweight Tonnage) were scrapped, up 146% year-on-year. 14 capesize bulk carriers have been sold for demolition so far in 2020, up from 5 in the same period of 2019.
18-February-2020
Grieg Star, a Norwegian shipping company, has recently undertaken the recycling of its first ship in compliance with the new European Union regulations. The handymax vessel, a significant part of their fleet since 2016, is now being recycled under the EU Ship Recycling Regulation (EU SRR). The ship in question, the MV Star Gran, a 43,800-dwt geared bulker built in 1986, is scheduled for dismantling at the Leyal Ship Recycling Group located in Turkey. This EU-certified facility is situated near Aliaga on the Aegean coast, in proximity to the ship’s last unloading port. This recycling marks a change in Grieg Star’s practices, as the company had previously preferred Chinese shipbreaking yards for such activities. The company’s CEO, Camilla Grieg, commented on the occasion, expressing a sense of nostalgia in sending the 33-year-old MV Star Gran on its final journey. She acknowledged the vessel’s long-standing service to the company and the significance of this decision. Grieg Star views the EU Ship Recycling Regulation as a crucial step forward in enhancing sustainability within the maritime industry. The company’s dedicated subsidiary, Grieg Green, is responsible for overseeing the sale and demolition of the Star Gran, ensuring full compliance with the EU’s stringent recycling standards.
18-February-2020
Singapore-based shipowner and operator Kumiai Navigation Pte Ltd, a wholly-owned subsidiary of Japanese shipowner Kumiai Senpaku Co Ltd, has placed an order with Nantong Cosco KHI Ship Engineering (NACKS) for the construction of an 82K DWT kamsarmax bulk carrier, which will be equipped with a scrubber and is scheduled for delivery in 2021, though the contract value has not been disclosed; in the same week, Kumiai Senpaku Co Ltd also ordered a dual-fuel Very Large Gas Carrier (VLGC) at Kawasaki Heavy Industries (KHI), while Kumiai Navigation Pte Ltd currently owns a fleet of 16 ships comprising 10 bulk carriers and 6 LPG carriers, and Kumiai Senpaku Co Ltd has an additional 2 bulk carrier newbuildings and 3 LPG carrier newbuildings on order; headquartered in Singapore, Kumiai Navigation Pte Ltd serves as the global commercial and technical management arm of Kumiai Senpaku Co Ltd, operating a diversified fleet across bulk, gas, and tanker segments, and is recognized for its operational reliability, chartering discipline, and commitment to environmental standards; its parent company, Kumiai Senpaku Co Ltd, founded in 1929 and based in Tokyo, Japan, is a privately owned maritime company with nearly a century of experience in Japanese and international shipping, known for its long-term approach to asset management, strategic fleet expansion, and stable partnerships with major energy companies and trading houses worldwide.
18-February-2020
Angeliki Frangou, the head of the Athens-based Navios Group, has expressed optimism for a significant recovery in dry bulk freight rates in the latter half of 2020. During a conference call discussing the fourth-quarter results of Navios Maritime Holdings, Angeliki Frangou highlighted expectations for the dry bulk market to rebound from its current downturn within months, pointing to Forward Freight Agreements (FFAs) that suggest a substantial increase in spot rates by year-end. Angeliki Frangou’s confidence stems from FFAs indicating that spot rates could potentially be six times higher towards the end of 2020 compared to current levels. This optimistic outlook is a shift from her previous stance in February, where she described the market as too volatile for accurate predictions. The anticipated recovery is attributed to seasonal market patterns, expected to improve as China, heavily impacted by the pandemic, returns more fully to the global market later in the year. This return is projected to enhance supply-demand dynamics and contribute to global economic growth. Despite reporting a net loss of $192.1 million for 2019, down from a loss of $268.7 million in 2018, Navios Holdings is actively renewing its fleet. Navios Holdings has recently added four modern vessels, including two capesize bulk carriers acquired through sale-and-leaseback transactions and two newly-built, chartered-in kamsarmax bulk carriers. These acquisitions underscore Navios Holdings’ commitment to fleet modernization amidst the market challenges. Additionally, Navios Holdings has divested older vessels, including the supramax bulk carrier MV Navios Star, whose sale was confirmed for the second quarter of 2020. The disposals of MV Navios Hios and MV Navios Kypros to unaffiliated parties further streamline the company’s fleet. Navios Holdings also benefited from the liquidation of Navios Europe I, enhancing its financial position by $13.5 million. The potential dissolution of Navios Europe II in the third quarter of 2021 could further bolster the company’s resources by $44.3 million. Angeliki Frangou’s forecast for a freight rate recovery and the strategic fleet renewal efforts of Navios Holdings reflect the company’s proactive approach to navigating the complexities of the global shipping industry, even as it faces immediate market challenges.
18-February-2020
Performance Shipping (PSHG) is making significant strides toward becoming a pure-play Aframax tanker owner. The New York-listed company, Performance Shipping, has taken a significant step by signing a memorandum of understanding to acquire the Aframax vessel MT FSL Shanghai, built in 2007, for $26 million from an unrelated seller. The delivery of MT FSL Shanghai is expected at the end of March. Performance Shipping, a Greek shipowner, has been gradually transitioning into an exclusively Aframax fleet since changing its name from Diana Containerships a year ago. This acquisition marks another addition to its Aframax fleet, bringing the total to four Aframax vessels along with one boxship. As part of its strategy, Performance Shipping has also divested itself of three boxships, including a post-panamax vessel sold to Chartworld in January. Andreas Michalopoulos, who leads Performance Shipping, expressed satisfaction with the acquisition, stating that it brings the company one step closer to becoming the only publicly listed pure-play Aframax company. The company believes it is well-positioned to benefit from favorable charter rates in the future. Despite this positive development, Performance Shipping’s shares, which are traded on the Nasdaq Stock Market, experienced a 1.9% decline to $0.78 by midday.
17-February-2020
The eminent Australian mineral conglomerate, BHP (previously acknowledged as BHP Billiton), conveyed that the protracted coronavirus pandemic imperiled the 2020 iron ore consumption. The mineral titan articulated that an extended pandemic would peril both tangible operations and market perceptions. BHP cautioned that if the ramifications of the Covid-19 pandemic prolong past the initial quarter, it would inevitably precipitate diminished commodity requisition. They commented on the multifaceted strategies employed by the Chinese administration to mitigate the virus’s spread, coupled with the population’s prudently cautious reaction, predicting an acute contraction in the March quarter’s economic endeavors. Yet, BHP surmised that should the psychological and logistical reverberations be efficaciously curtailed within that period, the resurgence in construction and manufacturing endeavors would ensue robustly, exceeding the typical operational metrics by the June quarter. While BHP remains hopeful for the swift containment of the Covid-19 surge within the March timeframe, they concede the uncertainty surrounding its exact duration. They further postulate that if the virus remains unchecked within this designated window or resurfaces post a semblance of containment, it would invariably jeopardize tangible operations and mar market sentiment. Under such circumstances, BHP intimated that they would likely recalibrate their annual projections downward, consequently depressing commodity demand. BHP’s assessments indicate that a staggering 90% of Chinese steel manufacturing is situated in provinces that proposed operational recommencements before February 2020’s culmination. Addressing the matter of IMO 2020, BHP observed that preliminary signs suggest the maritime sector was predominantly well-equipped for this transition. They alluded to the preceding trepidation concerning the refining community’s readiness level. While the prices for low sulphur fuel oil (LSFO) have unmistakably surged, BHP denied any firsthand encounters or reports of significant LSFO supply restrictions impeding maritime compliance. Before the advent of IMO 2020, BHP anticipated an addition of $1–2 per ton for Western Australia–China cargo and $3–4 per ton for Brazil–China. Based on approximately six weeks of empirical data, these estimates appear to align closely with the disparities observed between compliant LSFO and the erstwhile 3.5% bunkers.
17-February-2020
UAE-based Shaikh-family controlled shipowner and operator Tomini Shipping has set out an expansion-driven agenda following the Oslo OTC (Oslo Over the Counter) Market listing, positioning Dubai-based Shaikh-family-controlled shipowner and operator Tomini Shipping to widen its pool of potential investors and to pursue acquisition pathways that can accelerate fleet growth and modernize tonnage. Tomini Shipping has described the Oslo OTC (Oslo Over the Counter) Market listing as a defining milestone in Tomini Shipping’s development journey, and UAE-based shipowner and operator Tomini Shipping has emphasized that the Oslo capital ecosystem is one of the most influential finance hubs for shipping after New York, making the Oslo OTC (Oslo Over the Counter) Market the most suitable platform for Tomini Shipping’s next phase. Operationally, Tomini Shipping says UAE-based shipowner and operator Tomini Shipping currently has twelve (12) ultramax bulk carriers trading and three (3) kamsarmax bulk carriers on order, a fleet profile that gives Tomini Shipping broad flexibility across dry bulk cargo flows while also requiring significant capital planning for ongoing growth. In line with that ambition, UAE-based shipowner and operator Tomini Shipping has indicated that Tomini Shipping is preparing to boost capital through share issues, reflecting a plan to use the Oslo OTC (Oslo Over the Counter) Market listing to improve financing access and to support investment-led fleet development. Tomini Shipping has also signaled that, after the Oslo OTC (Oslo Over the Counter) Market listing, Tomini Shipping expects to be tracked more closely by investors and the wider market, and Dubai-based Shaikh-family-controlled shipowner and operator Tomini Shipping has said Tomini Shipping will approach the capital markets when finance market conditions are favorable. Strategically, Dubai-based Shaikh-family-controlled shipowner and operator Tomini Shipping has stated a preference for expanding the fleet with the latest eco-friendly and technologically advanced ships capable of delivering high performance and reliable service to charterers, reinforcing a message that Tomini Shipping wants modern tonnage not only to meet environmental and efficiency expectations but also to maintain strong commercial appeal in competitive chartering markets. At the same time, Tomini Shipping has stressed that Tomini Shipping will continue to seek acquisitions that fit Tomini Shipping’s existing corporate platform, suggesting that Tomini Shipping is focusing on disciplined growth—adding ships that match Tomini Shipping’s operating model, commercial relationships, and management capabilities rather than buying tonnage opportunistically without strategic alignment. Within that market framework, NOTC (Norwegian Over the Counter) Market is described as an unregulated marketplace owned and managed by the Oslo Stock Exchange, and Tomini Shipping is using the Oslo OTC (Oslo Over the Counter) Market presence to raise visibility and strengthen its credibility with institutional and shipping-focused investors. The growth narrative also sits on top of a long operating heritage: Tomini Shipping traces its origins to 1952 in Karachi, Pakistan, where UAE-based shipowner and operator Tomini Shipping was established as a liner operator as the shipping arm of the Shaikh family’s cotton trading enterprise. In 1974, the liner operating fleet was nationalized, after which the Shaikh family moved to London and developed operations in the tween decker market, and in 2004 Tomini Shipping relocated to Dubai, UAE, placing Tomini Shipping at a global shipping hub with proximity to major commodity flows, trading networks, and commercial counterparties. Tomini Shipping’s chartering activities are performed by Alpina Chartering in Denmark, a structure that connects Tomini Shipping to an established European chartering interface while Tomini Shipping maintains Dubai-based oversight and a Shaikh-family-controlled ownership profile. Tomini Shipping also states that Tomini Shipping’s philosophy is built on trust and on forming deep relationships centered on long-term collaborations with charterers, an approach that can support repeat business, more stable cargo programs, and stronger counterparty continuity as Tomini Shipping adds more ships. Taken together, the Oslo OTC (Oslo Over the Counter) Market listing, the emphasis on share-issue capital raising, the operational base of twelve (12) ultramax bulk carriers with three (3) kamsarmax bulk carriers on order, and the stated goal of adding eco-friendly, technologically advanced ships show a clear direction: UAE-based Shaikh-family controlled shipowner and operator Tomini Shipping is using the Oslo OTC (Oslo Over the Counter) Market to broaden funding options, expand acquisition capability, and build a modern dry bulk fleet that fits Tomini Shipping’s commercial model and long-term charterer relationship strategy.
16-February-2020
Japanese shipyard Kawasaki Heavy Industries (KHI) has announced it has received an order from Singapore-based shipowner and operator Kumiai Navigation Pte Ltd, a wholly-owned subsidiary of Japanese shipowner Kumiai Senpaku Co Ltd, for an additional 84,000 cu m Very Large Gas Carrier (VLGC) that will be equipped with an LPG dual fuel engine, marking the second VLGC in a series ordered by Kumiai Navigation Pte Ltd and scheduled for delivery from Kawasaki Heavy Industries’ Sakaide facility in Q1 2022; Kumiai Navigation Pte Ltd currently operates 5 Very Large Gas Carriers (VLGCs) as part of a broader fleet comprising 16 vessels in total, reflecting the company’s continued investment in high-specification gas carriers aligned with its long-term strategy for environmentally efficient shipping under the guidance of Kumiai Senpaku Co Ltd.
13-February-2020
Athens-based shipowner and operator TMS Dry Ltd. sold 2000 built panamax bulk carrier 74K DWT MV Topeka to a Chinese shipowner and operator. George Economou-led shipowner and operator TMS Dry Ltd. offloaded 20-year-old panamax bulk carrier which was the oldest bulk carrier in the fleet. Despite the problems induced by pandemic, Chinese shipowners are still pursuing secondhand panamax deals. Chinese shipowners think deals amid slow or falling ship values. Chinese shipowners are well-known for expressing interest in aging panamax bulk carriers, as two reported deals highlight this week. Athens-based George Economou-led shipowner and operator TMS Dry Ltd. sold 2000 built panamax bulk carrier 74K DWT MV Topeka for around $6 million. Currently, MV Topeka’s scrap price is $5 million. 2000 built panamax bulk carrier 74K DWT MV Topeka is the oldest unit in TMS Dry Ltd’s fleet and has been a sales candidate for quite some time. Athens-based shipowner and operator TMS Dry Ltd. circulated the MV Topeka in November 2019. Nevertheless, selling the MV Topeka should be deemed a success for TMS Dry Ltd., given the pandemic’s alarming impact on the S&P (Sale and Purchase) market.
12-February-2020
Amidst the somber landscape of freight markets, both Cido Shipping and Berge Bulk have bid adieu to their large capesize bulk carriers, surrendering them for demolition due to the persistent detriment of freight rates. This unwavering downward trajectory compels grand bulkers to inevitably fall into the clutches of ship recyclers. Noteworthy demolition agents revealed that the esteemed Hong Kong and South Korean conglomerate, Cido Shipping, has sealed a deal for the demolition of the 278,000-dwt ore vessel, MV Pacific Opal (commissioned in 1995), in the shores of Bangladesh. This majestic vessel fetched a handsome $394 per ldt, amounting to a sum of $14.7 million. In the winter month of December 2006, Cido Shipping, with its roots in both Hong Kong and South Korea, had acquired the MV Pacific Opal from SK Shipping. At that juncture, she sailed under the name MV C Planner and was procured for a staggering $42.5 million. The potential transaction surrounding the MV Pacific Opal stands monumental, symbolizing the company’s premier large bulker transaction in close to a seven-year span. To reminisce, back in June 2013, the same illustrious Cido Shipping divested its interests in the 258,000-dwt MV Pacific Beauty (inaugurated in 1992), which garnered $425 per ldt. In Cido Shipping’s vast fleet, one can find four grand ore vessels, each having their keels laid in or before 1995. During the years 2015 to 2017, Cido Shipping bid farewell to five ships, solely dedicated to automobile transportation. Founded under the visionary leadership of Hyuk Kwon in the year 1990, Cido Shipping is renowned for its exemplary ties with Japanese charterers, overseeing a fleet of approximately 100 vessels. Their eclectic ensemble comprises primarily of tankers and car carriers, flanked by 15 bulkers, with a majestic seven wearing the capesize mantle.
12-February-2020
Chinese shipping giant Cosco Shipping Bulk defends tribunal claim arising from Britannia Bulk AS bankruptcy in 2008. Cosco Bulk Carrier was the issue of an appeal in the London High Court over a deal for MV Grand Fortune in 2007. The London tribunal had ruled that it had jurisdiction to decide on whether Cosco Shipping Bulk was owed money by the MV Grand Fortune’s sub-charterer Americas Bulk Transport (ABT), a party unattached to Britannia Bulk AS. Tribunal’s jurisdiction explored whether the MV Grand Fortune was time chartered by Cosco Shipping Bulk to Britannia Bulk AS or its subsidiary. Britannia Bulk AS was controlling approximately 75% and Bulkers controlling approximately 25%. Bulkers went into insolvent liquidation in November 2008. A disagreement arose between Bulkers and Cosco Shipping Bulk regarding charter fees owed to the Cosco Shipping Bulk. Cosco Shipping Bulk took an assignment of Bulkers’ rights, which is then utilized by declaring allegedly outstanding hire from Americas Bulk Transport (ABT). Cosco Shipping Bulk’s claims against Americas Bulk Transport (ABT) are obtained as assignee of the rights of Bulkers. The UK court arrived at the same decision as to the arbitrators: that the party which chartered the MV Grand Fortune to the claimants was Britannia Bulkers A/S.
12-February-2020
Greek shipowner and operator Diligent Holdings acquired 2009 built supramax bulk carrier 55K DWT MV Triton Valk for around $11 million from Triton Navigation BV. Athens-based shipowner and operator Diligent Holdings was one of few ship buyers in the secondhand market for dry bulk ships last week. Furthermore, the remarkably low bulk carrier earnings conditions in recent weeks have unsurprisingly been placing a tremendous amount of downward pressure on bulk carrier prices. Triton Navigation BV is the subsidiary of Japan’s Sumitomo Corporation.
12-February-2020
Norwegian shipowner and operator Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) commences work on zero-emissions ship design. The Oslo-listed CEO Engebret Dahm-led shipowner and operator KCC (Klaveness Combination Carriers) has announced its involvement in devising a blueprint for its inaugural zero-emissions vessel. KCC (Klaveness Combination Carriers) aims to construct and secure a new building of this nature by 2030. This initiative forms part of Klaveness Combination Carriers’ (KCC) long-term strategy to progressively replace its existing fleet with innovative ships by 2050, effectively transitioning to a zero-emissions operation. Engebret Dahm, the Chief Executive, revealed that KCC has collaborated with its parent company, Torvald Klaveness. Klaveness Combination Carriers (KCC) has established a working group comprising both internal and external specialists, aiming to amalgamate their expertise. Klaveness Combination Carriers (KCC) is currently assessing all facets pertaining to the physical and environmental characteristics, as well as the suitability of potential zero-emission fuel varieties. Klaveness Combination Carriers (KCC) highlighted that ammonia possesses a higher energy density than hydrogen, resulting in less space occupancy within their vessels. However, as of now, ammonia is generated using fossil fuels and will only be a viable zero-emission alternative when produced using renewable, emission-free energy sources. In terms of liquefied natural gas (LNG), Klaveness Combination Carriers (KCC) stated that it would merely reduce greenhouse gas emissions by an estimated 15% in comparison to conventional fuel oil. Norwegian shipowner and operator Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) involves adapting their vessel designs to enable optimal utilization and management of the most promising fuel types applicable to their present and future trade operations. This endeavor is likely to encompass alternative designs and crucial parameters aimed at overcoming potential challenges associated with the newly introduced bunkers. Norwegian shipowner and operator Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) has ambitiously set a goal to achieve a 40% reduction in emissions in accordance with the International Maritime Organization’s (IMO) target by 2022. This achievement would surpass the 2030 decarbonization deadline by eight years. Klaveness Combination Carriers (KCC) fleet possesses the versatility to transport both wet and dry cargoes, operating in both the tanker and bulker markets. Klaveness Combination Carriers’ (KCC) approach minimizes ballast to less than 10% and enables the vessels to achieve between 30% and 40% lower CO2 emissions per tonne mile transported, consequently leading to higher profitability in comparison to conventional ships.
12-February-2020
Nasdaq-listed Greek shipowner and operator Seanergy Maritime (SHIP) has completed scrubber retrofits on five (5) capesize bulk carriers. Seanergy Maritime (SHIP) has completed a previously announced IMO (International Maritime Organization) 2020 regulation compliance plan. Seanergy Maritime (SHIP) spent $14 million for open-loop scrubbers installed on five (5) capesize bulk carriers. Greek shipowner and operator Seanergy Maritime (SHIP) chartered out Cargill International, Glencore’s subsidiary ST Shipping and Transport, and Uniper Global Commodities for the long-term. Seanergy Maritime (SHIP) chartered out 2012 built capesize bulk carrier 179K DWT MV Partnership and 2010 built capesize bulk carrier 179K DWT MV Lordship for four (4) years. Furthermore, Seanergy Maritime (SHIP) chartered out the 2010 built capesize bulk carrier 179K DWT MV Partnership and 2010 built capesize bulk carrier 170K DWT MV Squireship to a multinational commodity trading company for five (5) years. Seanergy Maritime (SHIP) chartered out the 2011 built capesize bulk carrier 179K DWT MV Championship for five (5) years. Greek shipowner and operator Seanergy Maritime’s charterers compensated for the open-loop scrubbers either by directly reimbursing Seanergy Maritime (SHIP) or working the cost into the charter terms. Seanergy Maritime (SHIP) has retrofitted the ships for the Neo Panama canal. Furthermore, Seanergy Maritime (SHIP) hedge against bunker price fluctuations.
12-February-2020
Slovenian shipowner and ship-manager Splosna Plovba sold 2005 built supramax bulk carrier 53K DWT MV Novo Mesto to Indonesian shipowner for about $6.3 million. On 15 January 2020, Slovenian shipowner and ship-manager Splosna Plovba sold 2008 built supramax bulk carrier 58K DWT MV Nova Gorica to Vietnamese shipowner for $8 million. Splosna Plovba DOO was established in the 1950s in Yugoslavia. Currently, Splosna Plovba has a fleet of four (4) supramax, two (2) ultramax, two (2) handysize bulk carriers.
11-February-2020
Athens-based New York-listed shipowner and operator Diana Shipping (DSX) has recently engaged one of its quartet of newcastlemax bulk carriers at a diminished rate, for a more abbreviated tenure compared to its prior agreement. Under the stewardship of Simeon Palios, Diana Shipping (DSX), which boasts ownership of a fleet of 40 bulk carriers, has leased the 206,040 DWT newcastlemax bulk carrier, MV Philadelphia (constructed in 2012), for a span of 14 to 17 months, to the distinguished BHP Billiton Freight Singapore at a daily rate of $14,500. Previously, Diana Shipping (DSX) had committed MV Philadelphia to Koch Shipping for 20 months at a rate of $20,000 per day. The newest accord with BHP Billiton Freight Singapore, commencing on the 5th of February, is poised to yield an estimated gross revenue of approximately $6.09 million over the minimum contract duration. At present, capesize bulk carriers boasting a 180,000 DWT capacity command average daily earnings of $14,637. The majestic fleet of Diana Shipping (DSX), encompasses four newcastlemax bulk carriers, 13 capesize bulk carriers, five post-panamax bulk carriers, five kamsarmax bulk carriers, and a dozen panamax bulk carriers, this tally excludes the recent divestments of the 73,695 DWT panamax bulk carrier MV Calipso (crafted in 2005) and the 164,218 DWT capesize bulk carrier MV Norfolk (inaugurated in 2002). The most recent share repurchase initiative by Diana Shipping (DSX) for 3.03 million shares witnessed a staggering oversubscription, almost six-fold, culminating in a prorated proposition for the vendors. Diana Shipping’s equities, which are showcased on the New York Stock Exchange under the emblem DSX, surged by 4.7%, touching $2.80 by Tuesday noon. The market valuation of Diana Shipping (DSX) is anchored at $260 million, bolstered by a robust 93.1 million extant shares.
11-February-2020
New York-listed shipowner and operator Scorpio Bulkers (SALT), under the leadership of Chief Executive Emanuele Lauro, is taking strategic steps to enhance its financial flexibility through a sale and leaseback arrangement with Ocean Yield. The company has entered into an agreement to sell three of its vessels – the ultramax bulk carriers MV SBI Cronos (built in 2015) and MV SBI Achilles (built in 2016), along with the kamsarmax bulk carrier MV SBI Lynx (built in 2018) – to Ocean Yield for a total of $62.8 million. Subsequently, Scorpio Bulkers will lease these ships back under long-term bareboat charters spanning nine, ten, and twelve years, respectively. This transaction, anticipated to close in the first quarter, is poised to significantly bolster New York-listed shipowner and operator Scorpio Bulkers’ (SALT) liquidity by approximately $33.6 million, following the repayment of outstanding debt on these vessels. Furthermore, Scorpio Bulkers will gain access to an additional funding tranche of up to $4.5 million, earmarked for the installation of exhaust gas scrubbers on the three vessels, demonstrating the company’s commitment to environmental compliance and sustainability. In addition to securing immediate liquidity, Scorpio Bulkers has negotiated several purchase options throughout the duration of each charter agreement, as well as a definitive purchase option at the end of each lease term. This strategic move offers Scorpio Bulkers both operational flexibility and the potential for asset reacquisition, aligning with its broader financial and operational strategies. Since October 2019, New York-listed shipowner and operator Scorpio Bulkers (SALT) has executed the sale of nine bulk carriers, including those involved in the latest transaction with Ocean Yield, as part of its ongoing fleet management and financial optimization efforts. In a related development, Robert Bugbee, a key figure in the company, exercised options on 730,000 shares of Scorpio Bulkers at a strike price of $3, with an expiration in December, representing a total investment of $900,000. This action underscores the confidence of Scorpio Bulkers’ leadership in the company’s strategic direction and future prospects.
11-February-2020
Athens-based New York-listed shipowner and operator EuroDry (EDRY) reported higher Q4 2019 earnings amid improved revenue. Aristides Pittas-led shipowner and operator EuroDry (EDRY) achieved higher earnings for Q4 2019 on improved revenue and grew the fleet. Currently, EuroDry (EDRY) has a fleet of seven (7) dry bulk carriers. New York-listed Greek shipowner and operator EuroDry (EDRY) reported a net income of $1 million in Q4 2019. EuroDry (EDRY) reported revenue of $7.6 million in Q4 2019. EuroDry (EDRY) reported operating expenses of $5.6 million in Q4 2019. Despite uncertainty due to the pandemic, EuroDry (EDRY) strives to boost the fleet. In May 2018, Aristides Pittas-led shipowner and operator EuroDry (EDRY) spun off from sister container ship company Euroseas (ESEA). Both EuroDry (EDRY) and Euroseas (ESEA) are New York-listed and backed by Aristides Pittas. EuroDry (EDRY) continues to seek opportunities to merge with other fleets to extend the company. On the other hand, EuroDry (EDRY) seeks initiatives to improve the company’s visibility amongst investors. Higher investor visibility should lower EuroDry’s (EDRY) discount to NAV (Net Asset Value) to obtain more pleasing returns for investors. In Q4 2019, the dry bulk market experienced a plunge in freight rates. This decline in freight rates was not completely reflected in the net revenues and TCE (Time Charter Equivalent) rate of Q4 2019. EuroDry (EDRY) reported an adjusted net income of $0.38 million for the full year of 2019.
11-February-2020
Singapore-based shipowner and operator Grindrod Shipping (GRIN) desires more ships under the company’s direct management. Previously, Singapore-based shipowner and operator Grindrod Shipping (GRIN) increased its fleet following the purchase of the outstanding portion of subsidiary company IVS Bulk. Grindrod Shipping (GRIN) takes control of IVS Bulk in a $44 million arrangement. New York-listed shipowner and operator Grindrod Shipping (GRIN) eventually seals the contract to buy out IVS Bulk’s bulk carriers. Singapore-based shipowner and operator Grindrod Shipping (GRIN) has signed a $44 million agreement to take over bulker joint venture IVS Bulk. Grindrod Shipping (GRIN) is acquiring about a 33.3% stake in IVS Bulk. Currently, IVS Bulk owns and controls 12 bulk carriers. That will bring Grindrod Shipping’s (GRIN) holding to solely under 66.8% as Grindrod Shipping (GRIN) resumes the company’s plan of moving bulk carriers under its complete control to enhance financial outcomes. At the beginning of 2020, Grindrod Shipping (GRIN) had expressed that the company planned to disburse $44.2 million for the shares. New York-listed shipowner and operator Grindrod Shipping (GRIN) had extended the deadline to close the agreement to 31 January. The contract with the remaining partner will be extended by one year, with Singapore-based tanker and bulker owner Grindrod Shipping (GRIN) now controlling critical parts of corporate management. The two other parties concerned are Sankaty European Investments III and Regiment Capital. The two current credit facilities of IVS Bulk will be refinanced with two new senior secured loans totaling $127 million, one to each partner. Singapore-based tanker and bulker owner Grindrod Shipping (GRIN) has arranged new financing of $35.8 million with an affiliate of the remaining partner. IVS Bulk deal means a paramount phase in the growth and development of Grindrod Shipping (GRIN). Currently, IVS Bulk controlled 12 bulk carriers are all modern, Japanese-built eco-ships. Singapore-based shipowner and operator Grindrod Shipping’s (GRIN) tanker arm is Unicorn Shipping which controls seven (7) MR tankers and a small product carrier.
11-February-2020
Dry bulk ship operator Norvic Shipping appointed Michael Fenger as the CEO and global head of dry cargo chartering. Previously, Michael Fenger was the MD (Managing Director) of Norvic Shipping’s Atlantic trade. Norvic Shipping’s new CEO and global head of dry cargo chartering Michael Fenger has worked in dry bulk shipping for 39 years, including 10 years working for now-defunct dry bulk operator Copenship. Michael Fenger will continue to work at Norvic Shipping’s Copenhagen office. Michael Fenger replaces Mudit Paliwal as Norvic Shipping’s COO (Chief Operating Officer). In 2019, Mudit Paliwal resigned from the dry bulk ship operator Norvic Shipping. In 2019, Mudit Paliwal and Henrik Jeremiassen left Norvic Shipping and established Delta Corp Europe ApS. Delta Corp Europe ApS is 100% owned by Dubai-based Delta Corp Holdings Ltd.
11-February-2020
George Gourdomichalis, CEO of Phoenix Shipping & Trading SA, successfully claimed a legal victory in the United States concerning the now-scrapped 73K DWT panamax bulk carrier MV Adamastos. A US federal judge ruled that Blue Wall Shipping Ltd. operated as a legitimate entity, not merely as a facade. Greek entrepreneurs George Gourdomichalis and Stathis Gourdomichalis secured a win in a global legal conflict over the abandoned panamax bulk carrier MV Adamastos, previously under their ownership. US District Judge Michael Mosman issued a summary judgment favoring Blue Wall Shipping Ltd., managed by the brothers, concluding the legal proceedings in Portland, Oregon. The affiliate of Phoenix Shipping & Trading SA, Blue Wall Shipping Ltd., defended against efforts by charterer Pacific Gulf Shipping Co. in federal court to enforce a $22.6 million arbitration award from London after the abandonment of MV Adamastos off the coast of Brazil in 2015. Pacific Gulf Shipping Co. aimed to hold Blue Wall Shipping Ltd. accountable for the entire award, claiming that Phoenix Shipping & Trading SA and several associated shipowning entities were all under the control of the Gourdomichalis brothers. The legal team for Pacific Gulf Shipping Co. contended that they could target Blue Wall Shipping Ltd.’s assets, arguing that these companies were mere extensions of each other. US District Judge Michael Mosman expressed concerns about certain questionable activities and the general handling of the MV Adamastos case, noting a lot to critique. However, he concluded that the arguments presented by Pacific Gulf Shipping Co. and its lawyers from Chalos & Co and Schwabe, Williamson & Wyatt were insufficient to convince a rational jury that the company was a facade. The judge acknowledged that George Gourdomichalis and Stathis Gourdomichalis might not have informed the Board of Directors of Blue Wall Shipping Ltd. about the arrest of another of their vessels, the 52K DWT supramax bulk carrier MV Vigorous, in South Africa and later in Portland. He also noted possible misinformation about the insurance status of both carriers through the American Club. Nevertheless, these factors did not prove that the Gourdomichalis brothers dominated Blue Wall Shipping Ltd. Judge Mosman affirmed that Blue Wall Shipping Ltd. functioned as a typical company. The panamax bulk carrier MV Adamastos was chartered by Pacific Gulf Shipping in July 2014 and was subsequently sub-chartered to South Korean logistics firm Integris and Japanese conglomerate Marubeni, which used the vessel to transport soybeans from Brazil to Japan and Singapore. During loading, Brazilian authorities identified 42 deficiencies during an inspection and detained the vessel. The following day, MV Adamastos broke free from its moorings and drifted out to sea. It was later towed to an anchorage and refloated, where it remained for six months amid crew complaints of inadequate provisions, expired contracts, and unpaid wages, leading to its declaration as abandoned. The protracted legal saga began with the abandonment of MV Adamastos in Brazil in 2014. Following its initial seizure, MV Vigorous was arrested again in Portland after a lawsuit in December 2018 by the charterer and was released in April 2019 when Blue Wall Shipping Ltd. posted a substitute bond. Another lawsuit involved the seizure of Blue Wall Shipping Ltd.’s handysize bulk carrier 30K DWT MV Fearless in Houston in February 2019 to secure claims fully. This case is ongoing, with a motion to dismiss filed by Blue Wall Shipping Ltd. in October 2019. A separate lawsuit by Munich Re-supported Great Lakes Insurance accuses the American Club and the Gourdomichalis brothers of colluding to terminate the insurance of MV Adamastos, thereby avoiding an $18.5 million claim, far exceeding the P&I club’s typical claims over several years. At the time, George Gourdomichalis served as a director and is now the chairman of the American Club, which has labeled the lawsuit as baseless and filed a motion to dismiss it in January.
11-February-2020
Thailand-based shipowner and operator Precious Shipping recommends dry bulk shipping companies to scrap vessels and hold off on ordering new bulk carriers. Thai-listed shipowner and operator Precious Shipping advises to lower ship supply through recycling and shipowners should refrain from ordering new ships. Precious Shipping stated factors like the US-China trade war, slowing GDP growth, accidents at Vale’s iron mine, and weather-related slowdowns in Australia have all affected the dry bulk shipping market. In Q4 2019, Precious Shipping reported a net profit of $0.94 million. Precious Shipping is more positive about prospects for 2020.
11-February-2020
Nasdaq-listed Greek shipowner and operator Seanergy Maritime (SHIP) foresees the dry bulk market to climb up from its lows after Q1 2020. Seanergy Maritime (SHIP) envisages 2020 to be a positive year. According to Seanergy Maritime (SHIP), Vale is going to export more iron ore and Chinese steel production is going to increase by an average of 7% in 2020. Greek shipowner and operator Seanergy Maritime (SHIP) reported a net loss of $11.7 million in 2019. Seanergy Maritime (SHIP) reported a revenue of $86.5 million in 2019. In 2019, Greek shipowner and operator Seanergy Maritime (SHIP) completed a scrubber installation programme for half its ten (10) capesize bulk carrier fleet. Afterward the installation of scrubbers, Seanergy Maritime (SHIP) chartered out scrubber fitted capesize bulk carriers on long-term at BCI (Baltic Capesize Index) index-linked charters. Seanergy Maritime’s (SHIP) non-scrubber fitted five (5) capesize bulk carriers are all employed in the spot market.
11-February-2020
Hong Kong-based shipowner and operator Wah Kwong Maritime Transport Holdings Limited strives to increase to a 50-vessel-managed fleet by end of 2020. Wah Kwong Maritime Transport Holdings Limited’s ship management business is booming, as the company rides on the growth of China’s state-backed lessors. Wah Kwong Maritime Transport Holdings Limited sets a target for year-end as 2019 sees third-party ships under management surpass owned fleet. Wah Kwong Maritime Transport Holdings Limited was managing 37 ships as of early January, including 18 of the company’s ships and 19 owned by other shipowners. Hong Kong-based shipowner and operator Wah Kwong Maritime Transport Holdings Limited had more third-party ships under management than its ships for the first time in 2019. Wah Kwong Maritime Transport Holdings Limited spent many years enhancing the company’s ship management services. Wah Kwong Maritime Transport Holdings Limited is adding new shipowners in China for taking care of their tankers and bulkers. Kwong Maritime Transport Holdings Limited’s clients comprise China Development Bank Financial Leasing, China Merchants Financial Leasing, CSSC (Hong Kong) Shipping, and CSIC Leasing. Wah Kwong Maritime Transport Holdings Limited is aiming to establish a ship management subsidiary in Shenzhen. Furthermore, Kwong Maritime Transport Holdings Limited manages European shipowners’ ships such as Exmar. In 2020, Kwong Maritime Transport Holdings Limited is due to take delivery of two scrubber-fitted kamsarmax bulk carriers from Chengxi Shipyard. Furthermore, two VLCCs Kwong Maritime Transport Holdings Limited jointly ordered with CSIC Leasing from Dalian Shipbuilding Industry Co are planned for delivery in 2021. Traditionally, Hong Kong-based shipowner and operator Wah Kwong Maritime Transport Holdings Limited embraces a conventional approach and selects to put the company’s ships on time charters to reputable charterers. Kwong Maritime Transport Holdings Limited’s ship management business is primarily about taking advantage of the company’s in-house expertise. Kwong Maritime Transport Holdings Limited’s most significant advantage as a ship manager is that the company can take care of the ships with integrated assistance from the new building stage to commercial and technical management. Kwong Maritime Transport Holdings Limited’s hybrid model is not uncommon elsewhere. Likewise, Chandris (Hellas) and C Transport Maritime are pleased to be shipowners and ship managers at the same time. Nevertheless, ship managers such as Wallem Group and Anglo-Eastern Group tend to set themselves as third-party technical managers. Kwong Maritime Transport Holdings Limited’s hybrid model has produced more income streams for the company beyond vessel chartering and sales. Kwong Maritime Transport Holdings Limited’s business model has evolved more diversified as a consequence.
10-February-2020
Norwegian shipowner and operator Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) endeavors to fulfill the International Maritime Organization’s (IMO) emissions target by 2022, demonstrating the company’s ambition to outpace the 40% reduction deadline by eight years for its combination carriers. Klaveness Combination Carriers (KCC) has set an audacious objective of achieving the International Maritime Organization’s (IMO) 40% emissions reduction target by 2022, surpassing the decarbonization deadline of 2030 by eight years. The International Maritime Organization (IMO) has established a target of a 50% reduction by 2050. Although demanding, the endeavor presents opportunities Klaveness Combination Carriers (KCC) acknowledges that these targets are likely to result in increased costs for shipowners and clients alike. However, Klaveness Combination Carriers (KCC) believe that this challenge also creates new prospects for owners capable of swiftly repositioning their businesses. Klaveness Combination Carriers (KCC) perceives the necessary transition toward a low-carbon shipping industry as an opening for new business opportunities. Klaveness Combination Carriers (KCC) firmly believe that sustainable operations not only benefit the environment but also have a positive impact on our financial performance. Moreover, the Klaveness Combination Carriers (KCC) aspires to achieve carbon-neutral operations before 2030. To achieve its objectives, Klaveness Combination Carriers (KCC) aims to enhance both energy and operational efficiency, utilize biofuels, and, if necessary, employ carbon offsetting measures. Simultaneously, the Norwegian shipowner and operator Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) plans to continuously test and implement new technologies across its fleet, with the goal of developing and commissioning its inaugural zero-emission vessel by 2030. Klaveness Combination Carriers’ (KCC) fleet possesses the capacity to transport both wet and dry cargoes, serving the tanker and bulker markets. This approach significantly reduces ballast to less than 10% and enables the vessels to achieve 30% to 40% lower CO2 emissions per transported ton-mile, leading to higher earnings compared to standard ships. Klaveness Combination Carriers (KCC) elucidated that a conventional kamsarmax dry bulk vessel, which transports grains from South America to Asia, remains empty up to 45% of the time. Klaveness Combination Carriers (KCC) emphasized the necessity for enhanced transparency and improved communication within the industry concerning decarbonization. The shipping industry has previously devised innovative solutions, and Klaveness Combination Carriers (KCC) firmly believes that both the industry and Klaveness Combination Carriers (KCC) will rise to the challenge once again. However, immediate action is imperative. Regarding biofuels, Klaveness Combination Carriers (KCC) recognizes their potential for widespread utilization but emphasizes the need for substantial global supply augmentation. Klaveness Combination Carriers (KCC) also expressed its intention to retrofit existing vessels with state-of-the-art technology.
9-February-2020
The esteemed Cido Shipping, headquartered in Hong Kong, is orchestrating an elegant departure from the VLOC segment by making strides to divest its trio. In a conspicuous maneuver to disengage from this sector, Cido Shipping has presented additional VLOCs for prospective buyers. This laudable Hong Kong-based vessel proprietor has offered its last three VLOCs for acquisition, following the recent relinquishment of the 278,000-dwt Pacific Opal (constructed in 1995) to scrap, as noted by demolition connoisseurs. The prime contenders for this offering include the 265,000-dwt Pacific Ruby (crafted in 1993), the 277,000-dwt Pacific Garnet, and the 265,000-dwt Pacific Coral (both constructed in 1995). These vessels are available for independent demolition purchases or as a collective ensemble. Nonetheless, informed sources suggest that the Pacific Ruby, being under an enduring charter, may retain its current status for the time being. This vessel, transmuted from a VLCC in 2008, awaits a specialized survey slated for June 2023, with its charter’s tenure remaining undisclosed. Similarly, the Pacific Coral, once a VLCC, along with the Pacific Garnet, is anticipated for a specialized review within this annum. As of now, there’s no designated timeline for submission of bids for these maritime assets. Earlier this month, the distinguished Cido Shipping relinquished the 278,157-dwt Pacific Opal (crafted in 1995) for demolition in Bangladesh, marking its inaugural large bulker divestiture in nearly a septennial period. Established by the visionary Hyuk Kwon in 1990, Cido Shipping boasts profound affiliations with Japanese charterers. As a multifaceted conglomerate, Cido Shipping presides over an impressive fleet of approximately 100 tankers, bulkers, and car carriers, including the exemplary standard capesizes - the 176,000-dwt Great Navigator (crafted in 2006) and the Great Challenger (constructed in 2005). Cido Shipping’s divestiture initiatives emerge amidst the consistent influx of large bulker recycling prospects, notwithstanding intermittent disruptions brought about by the coronavirus pandemic.
9-February-2020
Nikolas Martinos-led Greek shipowner and operator Thenamaris Ships Management sold 2010 built supramax bulk carrier 56K DWT MV Seahope II and 2010 built supramax bulk carrier 56K DWT MV Seapace for around $17 million en block. Recently, the dry bulk secondhand market shifted away from larger capesize bulk carriers to small bulk carriers. Currently, Asian shipowners have strong appetite for secondhand upramax and ultramax bulk carriers. Greek shipowner and operator Thenamaris established Thenamaris Conbulk Inc.
5-February-2020
Greek shipowner and operator Blue Seas Shipping S.A. has strengthened its dry bulk platform by purchasing the 2011-built 82K-DWT kamsarmax bulk carrier MV Sunny Young from Korean shipowner Joong Ang Shipping for approximately $15 million. The acquisition is a notable step for Greek Sigalas family-controlled Blue Seas Shipping S.A., as MV Sunny Young becomes the largest ship in the fleet of Blue Seas Shipping S.A. and marks the entry of Blue Seas Shipping S.A. into the kamsarmax bulk carrier segment. MV Sunny Young was constructed in 2011 at Daewoo Shipbuilding & Marine Engineering Co (DSME) in Korea, giving Blue Seas Shipping S.A. a Korean-built kamsarmax bulk carrier with greater cargo capacity and wider employment possibilities than the smaller bulk carriers previously associated with Blue Seas Shipping S.A. The deal shows that Blue Seas Shipping S.A. is willing to increase ship size when suitable secondhand opportunities become available. Blue Seas Shipping S.A. was established in 2014 and is controlled by the Greek Sigalas family, positioning Blue Seas Shipping S.A. among privately owned Greek dry bulk shipowners that expand through selective sale-and-purchase transactions. Since its foundation, Blue Seas Shipping S.A. has concentrated on bulk carrier ownership and operation, building a compact dry bulk fleet rather than following an aggressive fleet-growth model. The purchase of MV Sunny Young is therefore important because Blue Seas Shipping S.A. is not only adding another ship but also broadening its trading profile into a larger and more flexible dry bulk category. Kamsarmax bulk carriers are valued by shipowners and charterers because these ships can transport coal, grain, bauxite, fertilizers, ores, and other bulk commodities while still maintaining useful port access. For Blue Seas Shipping S.A., entering the kamsarmax bulk carrier segment improves access to larger cargo programmes, longer-distance employment, and chartering opportunities that may not be available to smaller supramax or handysize ships. Before buying MV Sunny Young, Blue Seas Shipping S.A. was mainly regarded as a smaller Greek dry bulk owner with a focused fleet structure. By adding an 82K-DWT kamsarmax bulk carrier, Blue Seas Shipping S.A. improves its commercial reach and increases total deadweight capacity across its fleet. The acquisition also brings Blue Seas Shipping S.A. a ship built by Daewoo Shipbuilding & Marine Engineering Co (DSME), a major Korean shipbuilder known for building large and technically capable commercial ships. Korean-built tonnage often attracts interest in the secondhand market because many charterers and buyers associate Korean yards with strong construction quality, solid engineering, and reliable operating performance. For Blue Seas Shipping S.A., these attributes may support the long-term trading value and chartering appeal of MV Sunny Young. The deal also follows earlier fleet activity by Blue Seas Shipping S.A., including the December 2019 sale of the 2006-built 55K-DWT supramax bulk carrier MV Georgios S to a Vietnamese shipowner for around $10 million. That disposal showed that Blue Seas Shipping S.A. was prepared to adjust its fleet when market conditions justified a sale. The later acquisition of MV Sunny Young points to a move toward larger tonnage and a broader dry bulk strategy. Greek shipowners have also been active in comparable dry bulk transactions, including the purchases of the 2006-built 74K-DWT panamax bulk carriers MV Phoenix Bay and MV Underdog for about $8 million each, showing continuing Greek appetite for attractively priced bulk carriers with trading potential. In that market setting, Blue Seas Shipping S.A.’s $15 million purchase of MV Sunny Young is notable because the ship is younger, larger, and positioned in the kamsarmax bulk carrier segment. After selling MV Sunny Young, Korean shipowner Joong Ang Shipping is left with one (1) kamsarmax bulk carrier and three (3) supramax bulk carriers, while Blue Seas Shipping S.A. gains a stronger fleet profile and a new foothold in the kamsarmax bulk carrier market. The transaction reflects the wider Greek shipping practice of using the secondhand market to reshape fleets, buy ships at attractive values, and enter new sectors without waiting for newbuilding deliveries. For Blue Seas Shipping S.A., the purchase of MV Sunny Young delivers immediate exposure to a larger ship type and allows Blue Seas Shipping S.A. to compete in trades requiring higher cargo capacity. Currently, Greek shipowner and operator Blue Seas Shipping S.A. controls a fleet of five (5) bulk carriers, and the arrival of MV Sunny Young increases both the scale and diversity of that fleet. As a smaller privately controlled Greek dry bulk owner, Blue Seas Shipping S.A. appears to follow a careful growth strategy built on targeted acquisitions and well-timed disposals. The acquisition of MV Sunny Young improves Blue Seas Shipping S.A.’s dry bulk position, expands Blue Seas Shipping S.A.’s cargo-carrying range, and gives Blue Seas Shipping S.A. a larger platform for future chartering opportunities. For Blue Seas Shipping S.A., the transaction is more than the purchase of one ship; it is a strategic entry into the kamsarmax bulk carrier segment and a clear sign that Blue Seas Shipping S.A. intends to remain active in Greece’s competitive dry bulk ownership market.
1-February-2020
Euroseas Ltd (ESEA), an Athens-based and New York-listed shipping company specializing in container ships, has reported a widened loss for the fourth quarter, with operating expenses nearly doubling compared to the previous year. The company, led by Aristides Pittas, experienced a loss of $0.93 million attributable to common shareholders, a decline from a $0.22 million deficit in the same period of 2018. The adjusted net loss for common shareholders increased to $1.6 million from an $0.8 million loss a year earlier, with the adjusted loss per share at $0.32. This figure did not meet the expectations of two analysts who had anticipated a loss of $0.20 per share, though it showed improvement from a $0.55 loss per share in the fourth quarter of 2018. Operating expenses surged to $12.9 million from $7.6 million, driven largely by a significant increase in vessel operating costs to $7.9 million from $4.5 million. Interest and other financing costs contributed to the rise in other expenses, which escalated to $1.2 million from $1 million. Despite these higher costs, Euroseas managed to increase its revenue to $13.3 million from $8 million, thanks in part to stable market rates. CEO Aristides Pittas commented on the market conditions, noting that containership time charter rates remained stable through the fourth quarter of 2019 and into early 2020, despite global economic uncertainties and trade tensions between the U.S. and China. However, he also highlighted the introduction of new uncertainties into the market in January 2020 due to the coronavirus epidemic and its potential impact on global and containerized trade growth. Over the quarter, Euroseas expanded its fleet from 11 to 19 boxships, contributing to a 16.3% increase in full-year revenue to $40 million. Nonetheless, the loss attributable to common shareholders for the full year expanded to $3.5 million from $2 million, with the adjusted net loss growing to $4.4 million from $3.5 million, resulting in a loss per share of $1.52 compared to $2.51 previously.