31-March-2020
On 28 March 2020, Cosco Shipping Bulk confirmed that 2015 built ultramax bulk carrier 63K DWT MV Feng De Hai’s second officer had died of coronavirus. MV Feng De Hai sailed from Guinea to Dneprobugsky in Ukraine. Second officer Mr. Wang did not leave the ship, had no contact with persons with fever, and had no symptoms of Covid-19. Mr. Wang’s body was removed from MV Feng De Hai this weekend while transiting the Bosphorus. According to Cosco Shipping Bulk, other crew members were suffering no symptoms of coronavirus, and the rest of the crew was tested negative Covid-19. Cosco Shipping Bulk complies with health practices and regulations regarding Covid-19 and took all necessary precautions. MV Feng De Hai has strictly implemented relevant prevention and control measures. After the Bosphorus transit, the crew did not go on shore and body temperature was measured daily. All remaining 24 crew members have normal body temperature and no fever. At the Dneprobugsky port in Ukraine, remaining crew members were all tested and reported as negative Covid-19. All crew have passed inspection and quarantine of the Ukrainian authorities.
29-March-2020
Nasdaq-listed shipowner and operator Seanergy Maritime (SHIP) acquired 2012 built capesize bulk carrier 181K DWT MV United Breeze for around $28 million. Currently, pure capesize player Seanergy Maritime (SHIP) owns and operates 15 capesize bulk carriers. Stamatis Tsantanis-led Seanergy Maritime (SHIP) reported a net loss of $18.4 million for 2020. Seanergy Maritime (SHIP) anticipates to profit from quickly increasing capesize freight rates. Based on capesize FFA (Forward Freight Contracts) rates, the incremental net revenue from Seanergy Maritime’s latest four (4) capesize purchases may provide $21 million for the remainder of 2021. In February 2021, Seanergy Maritime (SHIP) raised $75 million in a share sale.
26-March-2020
Monaco based ship manager and operator C Transport Maritime S.A.M. (CTM) chartered in capesize dry bulk carrier from Nasdaq listed Diana Shipping. C Transport Maritime S.A.M. (CTM) chartered in 2009 built capesize bulk carrier 177K DWT MV Houston at $12,400 per day until September 2021. C Transport Maritime S.A.M. (CTM) is going to pay around $5.25 million in total during the charter period. Previously, capesize bulk carrier 177K DWT MV Houston was chartered by Koch Shipping at $10,125 per day for a year. Nasdaq listed Diana Shipping has a fleet of 41 dry bulk carriers. Currently, weighted TCE (Time Charter Equivalent) for capesize bulk carriers at $6,762 per day. Capesize rates at the highest point since the beginning of 2020 and the FFA (Future Freight Agreement) markets have continued to achieve momentum. 12 April 2020
John Michael Radziwill-led ship manager and operator C Transport Maritime S.A.M. (CTM) has added another shipowner d’Amico Dry to its supramax pool. C Transport Maritime S.A.M. (CTM) increased supramax pool by adding 2006 built supramax bulk carrier 53K DWT MV Medi Bangkok and 2009 built supramax bulk carrier 56K DWT MV Medi Paestum to the Supramax Revenue Sharing Agreement (RSA). Italian dry bulk and tanker shipowner d’Amico currently operates 120 bulkers and tankers. In December 2019, Chandris (Hellas) joined to C Transport Maritime S.A.M. (CTM) supramax pool. Currently, Supramax Revenue Sharing Agreement (RSA) is the biggest and most flexible supramax pool in the shipping market today. C Transport Maritime S.A.M. (CTM) added 2011 built supramax bulk carrier 57K DWT MV Serene Jessica to the Supramax Revenue Sharing Agreement (RSA). 1 April 2020
Athens-based New York-listed shipowner and operator Diana Shipping (DSX) has engaged in a time charter agreement with Monaco-based ship manager and operator C Transport Maritime S.A.M. (CTM) for 2012 built capesize bulk carrier MV P. S. Palios. The charter commenced earlier this week and spans a duration of 13 to 15 months. The initial 35 days of the charter period will be charged at a rate of $6,000 per day, while the remaining portion of the charter will be charged at a rate of $12,050 per day. Based on the minimum time charter period, Diana Shipping (DSX) anticipates generating approximately $4.31 million in gross revenue from the time charter of 2012 built capesize bulk carrier MV P. S. Palios.
23-March-2020
London-based shipowner and operator Union Maritime Limited (UML) has entered into a contract with Hyundai Heavy Industries for the construction of two LPG-powered 91,000 cubic meter Very Large Gas Carriers (VLGCs). This agreement by Union Maritime Limited (UML) includes a confirmed order for one ship with the option to order an additional one. Each of these LPG-powered Very Large Gas Carriers (VLGCs) is priced at $79 million, with their delivery expected in 2022. This move signifies Union Maritime Limited’s (UML) inaugural foray into the LPG carrier segment. Union Maritime Limited (UML), a London-based entity, currently manages a diverse fleet consisting of 49 tankers, four bulk carriers, and three offshore vessels.
12-March-2020
Cleaves Securities warned investors about New York-listed Scorpio Bulkers may report disappointing results for Q1 2020. Furthermore, Cleaves Securities downgraded dry bulk stocks again as weak dry bulk has been on the horizon. According to Cleaves Securities, Scorpio Bulkers is expected to report results that are significantly below consensus estimates. Cleaves Securities’ analyst Joakim Hannisdahl forecast that Scorpio Bulkers will report TCE (Time Charter Equivalent) revenue of $56.7 million in Q4 2019 which is below consensus at $62.4 million. According to Joakim Hannisdahl, low fleet utilization of 89% due to scrubber installations and predict average gross realized TCE (Time Charter Equivalent) across the fleet at $10,617 per day. In October 2019, Scorpio Bulkers’ guidance was that 50% of Q4 2019 kamsarmax bulk carrier days had been fixed at $14,083 per day and 39% of ultramax bulk carrier days were fixed at $13,450 per day. After Scorpio Bulkers’ guidance, spot rates fell considerably at the end of the year and Cleaves Securities believe that the latest sharp fall in the chartering rates is not fully reflected in current consensus estimates. Besides, due to higher costs, Cleaves Securities predict earnings per share of negative $0.11 versus consensus at $0.02. Furthermore, Cleaves Securities is also noticeably below consensus in Q1 2020 earnings estimates. According to Joakim Hannisdahl, an offsetting factor could be another special dividend of shares in Scorpio Tankers. Scorpio Bulkers owns 4.4 million shares in Scorpio Tankers, which valued at $162 million constitutes 37% of Scorpio Bulker’s NAV (Net Asset Value). According to Joakim Hannisdahl, dry cargo bulk carrier earnings and ship prices will remain depressed in the coming months of 2020 due to the weak dry bulk demand and largest fleet growth in Q1 2020 since 2016.
9-March-2020
Limassol based Nasdaq-listed shipowner and operator Castor Maritime acquired 2009 built kamsarmax bulk carrier 81K DWT MV Olympic Galaxy for around $13 million from Greek Aristotle Onassis company Olympic Shipping & Management.
8-March-2020
Oslo OTC Market-listed (Over the Counter) 2020 Bulkers’ two remaining newcastlemax bulk carriers delivery could be delayed following the declaration of force majeure at Chinese shipyards due to coronavirus. Tor Olav Troim-backed 2020 Bulkers announced the possible setback as the company reported a slight net loss for 2019. Norwegian shipowner 2020 Bulkers is still awaiting delivery of two (2) newcastlemax bulk carriers from New Times Shipyard. Two (2) newcastlemax bulk carriers are planned to enter the company’s fleet of six (6) other newcastlemax bulk carriers by May. Tor Olav Troim-backed 2020 Bulkers may encounter delay in the delivery of the last two (2) newcastlemax bulk carrier newbuildings. Before the force majeure declaration at the Chinese shipyard New Times Shipyard, the building of the remaining two (2) newcastlemax bulk carrier newbuildings was around one month ahead of the contractual delivery program. Oslo OTC Market-listed (Over the Counter) 2020 Bulkers reported a $1.2 million profit for Q4 2019. Norwegian shipowner 2020 Bulkers started earning revenue for the first time in 2019 as four (4) of the company’s eight (8) newcastlemax bulk carriers were delivered from the New Times Shipyard and started long-term time charters. In 2019, Tor Olav Troim-backed 2020 Bulkers reported a net loss of $400K for the full. 2019’s loss was due to increased levels of operating and financial expenses that more than offset the company’s earnings. Oslo OTC Market-listed (Over the Counter) 2020 Bulkers has declared a cash dividend of $0.03 per share for January 2020. Norwegian shipowner 2020 Bulkers’ operating revenue for the full year 2019 was $9.1 million from the company’s six (6) newcastlemax bulk carriers’ time-charter employment. In Q4 2019, Norwegian shipowner 2020 Bulkers reported an Average TCE (Time Charter Equivalent) gross earnings of around $24,100 per day. In Q4 2019, Norwegian shipowner 2020 Bulkers reported net financial expenses of $1.2 million. In October 2019, Norwegian shipowner 2020 Bulkers signed a sale-and-leaseback transaction with compatriot Ocean Yield for 2019 built kamsarmax bulk carrier 208K DWT MV Bulk Seoul and 2019 built kamsarmax bulk carrier 208K DWT MV Bulk Shanghai. Oslo-listed 2020 Bulkers finalized financing agreements that boosted total net cash of $141 million during 2019, more than twice the level raised in 2018 in a series of private placements of its shares. 2019 built kamsarmax bulk carrier 208K DWT MV Bulk Seoul and 2019 built kamsarmax bulk carrier 208K DWT MV Bulk Shanghai sale-and-leaseback transactions raised net proceeds of $21.6 million and two private placements raised net proceeds of $63.6 million conducted during 2019. Norwegian shipowner 2020 Bulkers has plans for 2020 to resume the company’s strong capital discipline and to remain to concentrate on returning the majority of the company’s free cash flow to shareholders as dividends. Norwegian shipowner 2020 Bulkers stated the the company has a strong financial structure with moderate financial leverage and a solid cash position.
8-March-2020
Oslo Stock Exchange-listed Norwegian shipowner and operator Belships is poised to potentially part with another of its venerable Indonesian-built supramax bulk carriers. This comes as the Belships continually sharpens its attention towards contemporary supramax and ultramax bulk vessels. Esteemed shipbrokers in the sale-and-purchase domain have noted that the 2008 built supramax bulk carrier, the MV Belfort, with its 50,000 DWT, awaits prospective buyer inspections in India early this month. A historical note to consider: the MV Belfort, acquired by Lighthouse Shipholding in January 2018 for a sum close to $11.8 million from Seven Seas Carriers, eventually integrated into Belships' fold the subsequent year. This newfound availability of the MV Belfort for acquisition succeeds an October transaction wherein Belships, proudly listed in Oslo, divested its eldest among four bulk carriers, each meticulously built at Indonesia's PT Pal. To delve into the details of that transaction, Belships had clinched a sale coupled with a bareboat charter agreement with Turkey's Marti Shipping over the 2006 built supramax bulk carrier, the MV Beleast, which boasted a 50,000 DWT. While the exact price remains veiled, the sale of the MV Beleast, then the most seasoned vessel in the Belships' armada, ushered in a handsome $4.4 million profit for the Oslo-listed firm. Post its amalgamation with Frode Teigen’s Lighthouse Navigation, Belships proliferated its fleet, yet with a discerning emphasis on cutting-edge tonnage. It's worth noting that several of the more aged bulk carriers, brought under Belships' banner following their union with Lighthouse Navigation, seemingly find themselves out of sync with Belships' Norwegian ethos. Precursory to this merger, Belships' inventory also boasted the PT Pal-engineered 2007 built supramax bulk carrier, the MV Pacific Light, with its 50,000 DWT, which, as of the previous month, found a new owner under a charter-back agreement. Lastly, Belships' possession includes another 2008 built supramax bulk carrier, the MV Belorient. Intriguingly, conversations surrounding this PT Pal-constructed vessel in the S&P (Sale and Purchase) market have been conspicuously absent.
8-March-2020
Limassol based Nasdaq-listed shipowner and operator Castor Maritime has reported a $530,000 profit for Q4 2019. Petros Panagiotidis-led Cypriot shipowner and operator Castor Maritime’s, which also trade on the Norwegian OTC (Over The Counter), increased to $1.43. Castor Maritime has reported a revenue of $2.8 million for Q4 2019. Last year, Cyprus-based shipowner and operator Castor Maritime acquired a 2001 built panamax bulk carrier 75K DWT MV Magic Sun and a 2005 built panamax bulk carrier 76K DWT MV Magic Moon. Castor Maritime chartered out 75K DWT MV Magic Sun to Oldendorff Carriers. Castor Maritime chartered out 76K DWT MV Magic Moon to United Shipping Lines. Castor Maritime has been pleased to report a profitable Q4 2019 on the first year at Nadsaq. Cyprus-based shipowner and operator Castor Maritime charters out the bulk carriers on medium terms that supported Castor Maritime to remain profitable. Cyprus-based shipowner and operator Castor Maritime has another 2004 built panamax bulk carrier 76K DWT MV Magic P in fleet.
8-March-2020
February heralded a bustling period for the dismantling of vast bulk carriers, with 11 capesizes or VLOCs destined for torching. The prevailing price metrics remain notably consistent, potentially signaling heightened activity on the horizon. Presently, a trio of capesizes graces the market, and it’s anticipated that at least one additional VLOC will soon be available for purchase. The most recent majestic bulker to transition to the breakers is the MV NPS Century, a 172,000-dwt vessel constructed in 2000. This vessel is a part of the armada of the Thai energy magnate, Double A Power (DAP), representing the sole capesize within their naval collection. Several demolition intermediaries have intimated that negotiations for this ship have reached fruition, with the vessel charting its course to India, fetching $385 per ldt or a total of $8.2 million. However, some contest that the deal remains in the balance, with the sellers targeting a rate of $390 per ldt. Double A Power (DAP) had previously acquired the MV NPS Century from Japan’s esteemed MOL at a sum of $16.5 million back in May 2013, when it bore the name MV Mona Century. In the midst of this, the distinguished ship magnates from Hong Kong and South Korea, Cido Shipping, remain persistent in their endeavors to auction off three VLOCs for dismantling. The grand vessels, MV Pacific Ruby, constructed in 1993 and weighing 265,000-dwt, alongside the MV Pacific Garnet and MV Pacific Coral, both fashioned in 1995 and weighing 277,000-dwt and 265,000-dwt respectively, are available either as singular entities or as a consolidated trio. In the preceding month, Cido Shipping, headquartered in the illustrious city of Hong Kong, successfully brokered the MV Pacific Opal, a 278,000-dwt vessel from 1995, earmarking it for demolition.
8-March-2020
London-based the world’s biggest shipbroker Clarksons remarked that the firm has posted an impressively solid annual outcome. London-listed shipbroker Clarksons confronts the repercussions of the coronavirus, following its more prosperous year in 2019. Clarksons has already acknowledged the inevitable impact of pandemic on the company’s financial performance for the H1 2020. In light of a prosperous 2019, Clarksons forewarned the influence of the pandemic on their forthcoming fiscal report. The pronouncement arrived when the Clarksons revealed an underlying annual profit preceding tax, amounting to $65 million. Chairman Sir Bill Thomas noted the medium-term maritime environment remains promising due to evolving demand and supply dynamics. Furthermore, he mentioned the swift adoption of sustainability-focused regulations, such as International Maritime Organization (IMO) 2020. The emergence of the Covid-19 virus in Asia led to a marked decline in near-term freight rates. The pandemic’s territorial spread and longevity will shape the extent of the challenge to global GDP. However, CEO Andi Case-led Clarksons’ performance will endure a setback in the subsequent months of 2020. In the realm of brokerage and financial services, the CEO Andi Case eloquently stated, “2019 bestowed upon us a resilient financial framework complemented by a potent cash flow, permitting us to enhance the dividend for the seventeenth successive year.” A stellar performance across their shipbroking, research, and support sectors effectively counterbalanced the frailties in their financial services domain. It’s evident that Clarksons boasts a formidable financial foundation and a predominant stance across numerous maritime verticals. Clarksons’ available cash reserves amplified to £68.7 million. The broking sector registered an underlying profit of £55.5 million, and Clarksons’ revenue burgeoned to £283 million. On the contrary, Clarksons’ financial department grappled with stagnation in the capital market, resulting in a revenue of £35.5 million. London-based the world’s biggest shipbroker Clarksons unveiled that the past fiscal year had been captivating in the maritime financing domain. Traditional financial conduits for secondary and tertiary shipowners are dwindling as major banking establishments pivot towards corporate clientele. This shift has ushered in opportunities for alternative funding mechanisms, such as direct lenders and lease facilitators, to bridge the financial chasm. In 2019, Clarksons Platou Project Finance, headquartered in Norway, devised and finalized six novel transactions, financing a total of nine ships. CEO Andi Case elucidated the year’s volatility, affected by diverse factors from natural calamities to geopolitical fluctuations. CEO Andi Case added, “Yet, as anticipated, the overarching demand and supply dynamics exhibited improvement, echoed by enhanced fleet utilization, a stagnant shipbuilding landscape, and an uptick in marine commerce.” Discussing the International Maritime Organization (IMO) 2020 sulphur regulation, the CEO Andi Case foresaw sustained market turbulence and fluctuations in fuel prices as the sector adjusts. Tanker and gas segments flourished remarkably last year, while London-listed shipbroker Clarksons witnessed a modest resurgence in offshore vessel markets, buoyed by escalating activity. Peering into the future, Oxford Economics has projected that a pandemic spanning Asia would dent global GDP by 0.5%. If the virus morphs into a worldwide pandemic, the decline might touch 1.5%. Presently, the freight rate environment has been detrimentally influenced, marked by a 32% drop in the ClarkSea Index since 2020’s inception. Despite imminent challenges, London-based the world’s biggest shipbroker Clarksons’ CEO Andi Case emphasized the broad supportive macro backdrop, fostering positive advancement. Clarksons consistently highlighted the promising maritime supply and demand dynamics, underscored by historic lows in new ship constructions and a surge in ship demolitions, partly due to evolving regulatory stipulations.
8-March-2020
Nasdaq-listed shipowner and operator Eagle Bulk Shipping (EGLE) has fallen short of analyst consensus for Q4 2019, principally due to off-hire days incurred during the company’s scrubber installation program. In Q4 2019, Eagle Bulk Shipping reported a net loss of $11.2 million. In 2019, Eagle Bulk Shipping reported a total of 4,358 available days and revenue of $71.5 million. Eagle Bulk Shipping’s financial results in Q4 were affected by extended off-hire days due to scrubber installations. Currently, Eagle Bulk Shipping completed scrubber installations on 38 bulk carriers. Scrubber-fitted bulk carriers will give a competitive advantage to Eagle Bulk Shipping. So far in Q1 2020, Eagle Bulk Shipping has attained a TCE (Time Charter Equivalent) rate of $10,300 per day. Currently, dry bulk freight rates are at depressed levels. Nasdaq-listed shipowner and operator Eagle Bulk Shipping holds cash of $59 million and an additional $55 million in undrawn revolving credit facilities. Eagle Bulk Shipping intends to hold a conference call with analysts this week to discuss fourth-quarter results.
8-March-2020
In light of pandemic apprehensions and the raging oil price dispute, US stocks took a profound nosedive. The trading arenas witnessed their steepest devaluations since the 2008 debacle, with investors rendered uneasy by the COVID-19 outbreak and the ensuing oil-price strife. US-affiliated maritime equities experienced a precipitous descent on Monday, mirroring the broader market’s trajectory, agitated by pandemic anxieties and the oil-centric contention between Russia and Saudi Arabia. The maritime domain saw extensive divestments, with Dorian LPG’s stocks dwindling a staggering 24.8% to a close of $7.44 at the culmination of the New York trading soiree. Teekay Corp’s equity also bore the brunt, receding 22.9% to $2.22. Additional shares enduring substantial percentage retractions encompassed bulker magnate Navios Maritime Partners, tapering 22.5% to $6.53. Concurrently, Golar LNG witnessed a 21.5% reduction to $8.29. Contrarily, the sole maritime segment observing ascents was tankers, underscored by Frontline’s appreciable 7.4% surge to $7.56. The Dow Jones Industrial Average encapsulated the overarching scenario of the most profound market downturn since the 2008 economic catastrophe, dwindling 2,014 points to settle at 23,851. European equities on Monday also encountered pronounced depreciations, with London’s FTSE 100 enduring its most considerable intra-day decline in over a decade as global corona virus diagnoses approached 110,000. BW Offshore saw an erasure of nearly a quarter of its valuation in Oslo, while the worth of seismic survey vessel forerunner PGS diminished by a striking 38.4%. Another seismic survey conglomerate, CGG, depreciated by 33% on French soil. Bulker proprietor Cosco Corp in Singapore concluded Monday with an approximate 17% decrement. Oslo-based bulker magnates Golden Ocean and Jinhui Shipping & Transportation waned by 6.6% and 21% respectively. Simultaneously, LNG vessel magnate Hoegh LNG witnessed an 18% depreciation in its value. The Brent’s decline marked its most dramatic descent since the commencement of the inaugural Gulf conflict in 1991. Analysts conjectured a potential further decline unless both Saudis and Russians re-engage in deliberations in the wake of the recent disintegration of the Opec+ production agreement. Amidst this chaos, the Baltic Exchange Dry Index terminated with a marginal decline, down merely a point at 616. However, the capesize index retracted 60 points, culminating at -372. Anticipations were rife for a substantial US stock downturn on Monday, even preceding market commencement, with equity futures hinting at a prospective 4.8% decline for the emblematic Dow Jones Industrial Average.
8-March-2020
Switzerland based shipowner and operator Massoel Shipping has advanced further in its conspicuous contraction of the firm’s fleet. Switzerland based shipowner and operator Massoel Shipping has secured a commercial purchaser for a handysize bulker crafted by Sekwang Shipbuilding, marking yet another transaction in an ongoing series. Industry insiders indicated that Massoel Shipping has divested its 2002 built handysize bulk carrier 20K DWT MV Martigny to an unidentified buyer at a modest sum of $2.9 million. 2002 built handysize bulk carrier 20K DWT MV Martigny awaits its impending dry docking. Massoel Shipping, a Swiss establishment, remains reticent regarding its corporate transactions. This divestiture follows a series wherein the Geneva-centric Massoel parted with over half of its bulk carrier fleet, commencing the previous July. For instance, this past January, whispers in the shipping industry suggested Massoel Shipping divested its sistership 2002 built handysize bulk carrier 20K DWT MV Andermatt for a neat sum of $4 million. MV Andermatt had been on the market for an extended duration. In the subsequent September, Switzerland based shipowner and operator Massoel Shipping parted with another counterpart, 2002 built handysize bulk carrier MV Arosa, transferring ownership to Egypt-based shipowner and operator Reknav at a rate of $4.5 million. In the ensuing autumn, two additional handysize bulkers were relinquished by the Switzerland based shipowner and operator Massoel Shipping. Founded in the early 1980s by ex-Acomarit Chief Georgio Sulser, the Swiss maritime magnate Massoel Shipping initiated this significant downsizing of its bulker engagements, highlighted by the divestment of the 2001 handysize bulk carrier 46K DWT MV Glarus for a considerable $6.1 million the preceding July. MV Glaru’s ownership transitioned to PM Pioneer of the Marshal Islands. This retreat from maritime ownership synchronized with the sale executed by affiliate B Skaugen, disposing of its 49% interest in the collaborative enterprise Massmariner, erstwhile proprietor of the bulkers.
8-March-2020
In light of the escalating coronavirus situation, Cleaves Securities has regretfully annulled its imminent Norwegian seminar. The firm, ever-committed to its clientele, anticipates orchestrating an alternative shipping and energy convocation later in the annum. The initially planned symposium, earmarked for 10th March in the illustrious city of Oslo, joins a burgeoning list of maritime congregations impacted by the pandemic’s reverberations. That day was poised to showcase an enlightening maritime colloquium spearheaded by the esteemed Joakim Hannisdahl, Head of Research. Concurrently, a session focused on oil and gas, steered by the sagacious Rystad Energy analyst Louise Dickson, was to culminate in a refined tapas and beverages soirée. Heeding expert advice, Cleaves Securities is ardently adopting suggested safeguards against the contagion’s proliferation. The firm extends its profound apologies for any resultant disarray and ardently hopes to extend an invitation to a subsequent maritime and energy gathering later this calendar year. This week bore witness to another significant casualty in Singapore’s maritime domain due to the virus’s spread: The Singapore Iron Ore Week, initially slated between 18th and 21st May. A week prior, the Maritime Port Authority (MPA) made the weighty decision to defer the anticipated Singapore Maritime Week, earlier penciled in for April’s conclusion. In a separate development, the renowned Marine Money saw it imperative to reschedule its Dubai conference, originally planned for the ensuing week, to the waning days of November 2020. The 20th edition of the Transpacific Maritime (TPM) conference, which was on the horizon for 1st to 4th March in Long Beach, stands as the most significant cancellation of an international maritime event outside Asian precincts, a testament to the outbreak’s vast implications.
8-March-2020
Greek shipowners M/Maritime and Ariston Navigation have collaborated with German Termgroup to establish TMA Bulk Pool. Hamburg-based TMA Bulk Pool was established by two Greek and one German shipowners in February 2020. TMA Bulk Pool will focus on handysize bulk carriers.
M/Maritime, Ariston Navigation, and Termgroup pulled bulk carriers out of the Aug Bolten managed Sea Stallion Pool in order to form TMA Bulk Pool. Currently, TMA Bulk Pool manages 20 bulk carriers in the pool. TMA Bulk Pool will be managed Oliver Harms who was a former chartering manager at Aug Bolten. After M/Maritime, Ariston Navigation, and Termgroup exit the Sea Stallion Pool, Sea Stallion Pool has left with a couple of bulk carriers of founding member Aug Bolten. Hamburg based Aug Bolten is Germany’s second-oldest shipping company. Aug Bolten is controlled by Gerhard Binder and Killinger family.
In 2013, Sea Stallion Pool was formed by John Xylas led Ariston Navigation, together with Lydia Mar Shipping. Greek Lydia Mar Shipping is a subsidiary of the Aug Bolten. Initially, Sea Stallion Pool was managing eight (8) handysize bulk carriers. Later on, Sea Stallion Pool expanded to 30 bulk carriers. Aug Bolten managed Sea Stallion Pool members were:
- M/Maritime
- Ariston Navigation
- Termgroup
- Castleton Commodities Shipping
- Denholm Shipping
7-March-2020
Another significant maritime-centric symposium in Singapore succumbs to the pervasive clutches of the global coronavirus epidemic. The much-anticipated Singapore Iron Ore Week, originally slated for 18th to 21st May 2020, stands officially abrogated. Given the relentless surge of Covid-19, the decision to annul the 2020 Singapore International Ferrous Week (previously christened as Singapore Iron Ore Week) and the Singapore Iron Ore Forum, set to be held at the Sands Expo & Convention Centre, was pronounced by its venerated orchestrator, the Singapore Exchange (SGX). This measure is borne out of a heightened commitment to ensuring the wellbeing and safety of our cherished clientele, allies, and esteemed stakeholders in the ferrous domain. Inaugurated in 2013, this conclave amasses luminaries from the iron ore and steel fabrication spheres, including behemoths like Rio Tinto, Vale, BHP, and Cargill. It is reputed that Singapore has ascended to the position of the world’s penultimate metals and minerals trading nexus, following Switzerland, boasting participation from over 200 conglomerates in the arena. Recently, the Maritime Port Authority (MPA) deferred the Singapore Maritime Week, which was poised to commence by April’s end, citing analogous apprehensions. In a distinct development, Marine Money has found itself compelled to rearrange its Dubai convention, initially anticipated for the ensuing week, to a later date in November 2020. Owing to the heightened proactive endeavors of global governments and corporations to curb the Covid-19 contagion, ensuing travel constraints and accompanying prudential actions have rendered attendance burdensome for a portion of our patrons and aficionados at our Dubai conference, articulated by Marine Money.
7-March-2020
New York-listed shipowner Genco Shipping & Trading initiated its first stockholder dividend in eight years. John Wobensmith-led Genco Shipping & Trading announced how dividend payments will survive during the post-coronavirus recession. In 2014, Genco Shipping & Trading emerged from a Chapter 11 bankruptcy. Genco Shipping & Trading has reported a profit in Q4 2019. In 2019, Genco Shipping & Trading has completed the exhaust gas cleaning systems programme. The post-coronavirus recessions sent freight markets and dry stock prices plunging across the shipping industry. Genco Shipping & Trading believes that the company is the toughest in the dry bulk in terms of liquidity and balance sheet. Genco Shipping & Trading started the $0.175 per share quarterly dividend. Genco Shipping & Trading is pretty comfortable with a regular dividend policy. Currently, New York-listed shipowner Genco Shipping & Trading has $162 million in cash on the balance sheet. Genco Shipping & Trading is one of the dry bulk owners that can manage to pay dividends to shareholders. Genco Shipping & Trading has examined thoroughly whether to use a fixed or a variable dividend payout and preferred regular dividend policy. John Wobensmith-led Genco Shipping & Trading has low gearing in the range of 35% net debt. Genco Shipping & Trading’s fleet is managed by Genco Ship Management LLC.
7-March-2020
Copenhagen-based shipowner and operator Dampskibsselskabet DS Norden A/S reported the company’s third consecutive year in profit in 2019. Furthermore, Dampskibsselskabet DS Norden A/S reported the company’s best quarter since Q4 2015. Danish shipowner and operator Dampskibsselskabet DS Norden A/S opted for a plan to become a more trading-oriented shipping operator. Dampskibsselskabet DS Norden A/S strives to return more capital to shareholders. Dampskibsselskabet DS Norden A/S owns and operates both bulk carriers and tankers. Dampskibsselskabet DS Norden A/S BOD (Board of Directors) has submitted a dividend of $0.37 per share for the full year. Danish shipowner and operator Dampskibsselskabet DS Norden A/S had not distributed a dividend since 2015. Dampskibsselskabet DS Norden A/S strives to increase dividends to shareholders and will execute a unique dividend approach for 2021. Dampskibsselskabet DS Norden A/S seeks to distribute dividends based on a minimum 50% ratio of the annual adjusted result. Despite weak bulker markets during Q4 2019, Dampskibsselskabet DS Norden’s A/S dry bulk team had reported the company’s best quarter of the year with an adjusted result of $14 million. Dampskibsselskabet DS Norden’s A/S tanker team had reported an adjusted result of $15 million. In Q4 2019, Dampskibsselskabet DS Norden’s A/S dry bulk team had reported a net profit of $8 million. Dampskibsselskabet DS Norden’s A/S dry bulk team had reported a revenue of $2.6 billion for 2019. Danish shipowner and operator Dampskibsselskabet DS Norden A/S has reorganized the company’s business divisions into asset management, dry operator, and tanker operator segments. Dampskibsselskabet DS Norden’s A/S asset management segment represents the conventional market value of the owned and leased fleet. Furthermore, Dampskibsselskabet DS Norden’s A/S technical, commercial and research teams have been merged. This system permits Dampskibsselskabet DS Norden A/S to cope with the volatility of the shipping marketplace. This system permits Dampskibsselskabet DS Norden A/S to take advantage of the This system permits Dampskibsselskabet DS Norden A/S by picking the most suitable ships, at the suitable cost, to serve the charterers. Jan Rindbo-led Dampskibsselskabet DS Norden A/S anticipates to report even better results in 2021. In 2020, Dampskibsselskabet DS Norden A/S will resume performing towards developing a more resilient, and ambitious company.
7-March-2020
Pacific Gulf Shipping is gearing up to appeal a significant legal decision in its protracted dispute with Phoenix Shipping & Trading SA CEO George Gourdomichalis and Stathis Gourdomichalis regarding the abandonment of the 1995-built, now-scrapped 73K DWT panamax bulk carrier MV Adamastos. The company has filed a notice of its intention to challenge the dismissal of its $22.6 million lawsuit by US District Judge Michael Mosman, which sought to enforce an arbitration award won in London. This appeal is set to be presented to the Ninth Circuit Court of Appeals, with the opening brief due by June 1, as indicated by the appellate court docket. The dispute centers around allegations that companies controlled by George Gourdomichalis and Stathis Gourdomichalis abandoned the Blue Wall Shipping Ltd. controlled bulk carrier MV Adamastos off the coast of Brazil in 2014. The vessel, which was chartered to carry soybeans to the Far East, encountered legal troubles when it was detained by Brazilian authorities, subsequently breaking free of its moorings and being declared abandoned months later. In the lawsuit, Pacific Gulf Shipping contended that the shipowner and manager, Blue Wall Shipping Ltd.—another entity led by the Gourdomichalis brothers—was essentially a puppet operated by the duo, and thus liable for the arbitration award concerning MV Adamastos. However, Judge Michael Mosman dismissed these claims, stating that no rational jury could view Blue Wall Shipping Ltd. as an illegitimate entity. He pointed out that the company had an independent board and generally operated normally, despite some internal communication issues, such as the failure to inform the board of directors about the arrest of another vessel, the 52K DWT supramax bulk carrier MV Vigorous, by Pacific Gulf Shipping in South Africa during the dispute.
7-March-2020
South Korean shipowner and operator Polaris Shipping have signed deals under terms of the Lloyd’s Open Form (LOF) with Smit and Ardent for salvage of VLOC (Very Large Ore Carrier) MV Stellar Banner. MV Stellar Banner grounded off Vale’s Ponta de Madeira terminal. MV Stellar Banner insurers are to split costs under GA (General Average). Smit and Ardent is a leading salvage company. South Korean shipowner and operator Polaris Shipping, Vale, Smit and Ardent has been trying to mitigate any impacts caused by the incident. Therefore, MV Stellar Banner’s full tanks will be offloaded. Brazilian mining giant Vale has been providing all the technical and operational support to MV Stellar Banner. Smit and Ardent will try to refloat MV Stellar Banner however the risk that the hull may be declared a CTL (Constructive Total Loss). Under Lloyd’s Open Form (LOF) terms, the salvage award is partly decided as a proportion of the value of the iron ore cargo and the value of the salvaged hull. According to South Korean shipowner and operator Polaris Shipping, MV Stellar Banner is worth around $66.6 million. MV Stellar Banner’s Protection and Indemnity (P&I) cover is placed with Britannia P&I Club. MV Stellar Banner’s crew insurance is with Korea P&I Club.
7-March-2020
London Stock Exchange-listed shipping fund Tufton Oceanic Assets announced that the company has been protected from the effects of the post-coronavirus recession by period coverage and diverse fleet. Tufton Oceanic Assets’ portfolio diversification policy and solid charter coverage have protected the company from the recent shipping market volatility. In February 2020, Tufton Oceanic Assets reported NAV (Net Asset Value) of $0.976 per share. Tufton Oceanic Assets reported the average charter length of the company’s shipping portfolio is three (3) years which minimizes spot market exposure. Tufton Oceanic Assets’ fleet has no void period between charters. Tufton Oceanic Assets observe the evolving shipping market circumstances. Tufton Oceanic Assets is assured that its policy will result in low volatility of cash flow and NAV (Net Asset Value). London Stock Exchange-listed shipping fund Tufton Oceanic Assets has $20 million of cash ready for future investment. In February 2020, Tufton Oceanic Assets sold vessels for the first time.
6-March-2020
London-listed shipbroker Braemar Shipping Services warns that world trade has been slowing due to coronavirus outbreak. Braemar Shipping Services presumes profits to be affected by the coronavirus outbreak. Braemar Shipping Services predicted that shipping markets have seen notable reductions in charter rates since the start of 2020, especially for the VLCC and capesize bulk carriers, due to diminished import of China. Because of the coronavirus outbreak, estimations for financial growth and world trade are broadly anticipated to decline. According to London-listed shipbroker Braemar Shipping Services, the health of all the company’s personnel and stakeholders is of predominant concern. Braemar Shipping Services has been watching the circumstances closely. The coronavirus outbreak is not stopping the expansion strategies of Braemar Shipping Services. Braemar Shipping Services plans to open new offices in Athens and Geneva. Braemar Shipping Services’ Athens office is going to concentrate on S&P (Sale and Purchase) market. Braemar Shipping Services’ Swiss office is going to concentrate on dry bulk brokerage services. Currently, the shipping market outlook is uncertain due to the coronavirus. Braemar Shipping Services’ logistics unit has reported financial results in line with 2019. Braemar Shipping Services aims to expand the company, including possible acquisitions.
6-March-2020
Grounding of Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner has reignited concerns over the structural fragility of modern VLOCs (Very Large Ore Carriers) and safety concerns. MV Stellar Banner’s master grounded the VLOC (Very Large Ore Carrier) off Brazil after it departed Vale’s Ponta de Madeira terminal. MV Stellar Banner’s master reported water ingress. South Korean shipowner and operator Polaris Shipping MV Stellar Banner might hit an object in the channel after departure. Previously, liquefaction of iron-ore fines loaded onto the MV Stellar Banner has been linked with stability problems in bulk carriers. Nevertheless, liquefaction is regularly linked with nickel ore than iron ore. Modern VLOC (Very Large Ore Carrier) MV Stellar Banner was built to tolerate the rapid loading rates. MV Stellar Banner’s master promptly grounded the VLOC (Very Large Ore Carrier) because VLOC designs are vulnerable to catastrophic flooding of the cargo holds when water ingress is present. The fragility of large bulk carrier designs to progressive flooding was demonstrated in the accident report into the loss of the 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy. In 2017, MV Stellar Daisy was also carrying iron ore from Brazil to China in 2017. The rapid sinking of the MV Stellar Daisy, which suffered structural failure after water ingress, claimed 22 of the 24 seafarers. Even modern and purpose-built VLOCs (Very Large Ore Carriers) have some of the structural weaknesses.
5-March-2020
Having dedicated 2019 to transactions in the pre-owned market, the Genoa-based Premuda has elegantly re-entered the newbuilding arena. Gaudenzio Bonaldo Gregori, the illustrious CEO of Pillarstone Italy, has recently secured two 50,000 dwt MR2 tankers, currently under construction at the esteemed Imabari Shipyard. Mr. Gregori elaborated that these vessels, boasting a super-eco design, were originally commissioned but never delivered to their initial owner. While the exact figures of the investment remain confidential, prevailing market rates suggest an approximate valuation of $30 million per unit. The distinguished Italian maritime enterprise, Premuda, under the leadership of Marco Fiori, boasts a fleet comprising 16 eminent vessels, including seven bulkers and nine tankers. When considering vessels under both commercial and technical oversight, the tally surpasses 20. Moreover, Mr. Gregori foresees that by the culmination of 2020, Premuda’s stewardship will encompass roughly 40 vessels. Beyond Premuda, recognized as the primary platform for vessel management, Pillarstone has also innovatively instituted a fund named Finav. This fund, crafted for the assimilation of distressed assets, currently holds a substantial financial exposure exceeding $500 million, linked to 25 distinguished ships. Presently, Pillarstone is engaged in three pivotal restructurings (Perseveranza di Navigazione, Navigazione di Cabotaggio, and PB Tankers), whilst several others have reached fruition through collaborations with the ship owners, namely Motia Compagnia di Navigazione, Finaval, and Lavant Shipping. The KKR-controlled financial revival fund has established its creditorship over thriving maritime enterprises such as Mednav, Michele Bottiglieri Armatore (MBA), and Morfini. Additionally, Pillarstone is engaged in preliminary deliberations with a duo of international banks, deeply intertwined with the maritime sector, to uncover fresh avenues for restructuring.
5-March-2020
Athens-based New York-listed shipowner and operator Diana Shipping (DSX) has secured a charter for one of its prominent capesize vessels to Oldendorff Carriers, albeit at a diminished rate compared to the previous agreement with Berge Bulk Shipping. Under the vigilant guidance of Simeon Palios, Diana Shipping (DSX) has formalized a time charter accord with Oldendorff, concerning the 174,186 DWT capesize vessel, MV Sideris (constructed in 2006). The arrangement, which begins at $12,700 daily, spans from 15 October to a possible extension until 31 December. The embarkation of this charter is slated for 8 March, with projected revenue approximations hovering around $2.76 million for the New York-registered Hellenic maritime entity, Diana Shipping (DSX). It’s noteworthy that Diana Shipping (DSX) had previously secured an agreement for the aforementioned vessel with Berge Bulk, priced at $15,350 daily over a 15-month duration. As per the Baltic Exchange’s recent data, the capesize bulk carriers’ weighted time charter average stands at $2,542, juxtaposed with the $15,194 daily rate recorded at December’s end in 2018. Following the successful conclusion of a prior sale involving a capesize bulk carrier, Diana Shipping (DSX) will proudly command a fleet comprising 41 dry bulk vessels. A mere week prior, Diana Shipping (DSX) unveiled a strategic leadership realignment within its affiliate, Performance Shipping, heralding the impending segregation of the two establishments.
5-March-2020
Geneva-based shipowner and operator SwissMarine and P&I (Protection and Indemnity) insurer Gard are trying to force a payout for damage to 2006 built capesize bulk carrier 174K DWT MV Mineral Libin after a clash with another ship in China in 2007. Norwegian Supreme Court delivered a landmark judgment that authorizes a lawsuit to be followed against Skuld over a collision in 2007. Norwegian Supreme Court found that the claim was not time-barred because a tribunal did not base liability until 2016. Peter Weernink-led shipowner and operator SwissMarine and P&I (Protection and Indemnity) insurer Gard’s lawyers at Thommessen expressed that the Norwegian Supreme Court’s verdict clarified key issues on the interpretation of the Insurance Contracts Act (ICA) and the Norwegian Limitation Act (NLA). In 2007, The conflict arose after 2006 built capesize bulk carrier 174K DWT MV Mineral Libin, while turning to starboard to berth in a river, smashed a buoy and another berthed ship, provoking substantial damage to both ships. In 2010, Disponent Owner Geneva-based SwissMarine commenced arbitration proceedings against sub-charterer Transfield, alleging that the port was unsafe for the ship in breach of the safe port warranty in the charterparty. However, sub-charterer Transfield claimed that the collision was caused by navigation errors of the Pilot or Ship Master. In 2010, sub-charterer Transfield went into liquidation, giving the shipowner a protected right to bring a potential direct claim against Skuld under the Insurance Contracts Act (ICA). Nevertheless, the case of liability through the charter chain was only eventually resolved through London arbitration in 2016. Later on, Geneva-based shipowner and operator SwissMarine brought the claim against Skuld, which argued that by that point it was too late. Norwegian Supreme Court started from the premise that the limitation period under the Norwegian Limitation Act (NLA) commences when the claim holders have sufficient information to institute legal proceedings. Norwegian Supreme Court stated that Geneva-based shipowner and operator SwissMarine filed a petition for conciliation proceedings against Skuld in September 2016, the claim was therefore not time-barred.
4-March-2020
Nasdaq-listed shipowner and operator Seanergy Maritime (SHIP) has received extensions on two loan facilities, one of which will mature in less than two weeks. Seanergy Maritime (SHIP) has received lender approval in the form of a commitment letter to extend the loans’ maturities. Greek shipowner and operator Seanergy Maritime’s (SHIP) bank debt and other financial liabilities stood at $183 million as of 31 December 2019. Seanergy Maritime (SHIP) has a market capitalization of $7.26 million based on 26.9 million shares. Seanergy Maritime (SHIP) owns a fleet of ten (10) capesize bulk carriers.
3-March-2020
The scrubber installations hurt Nasdaq-listed shipowner and operator Eagle Bulk Shipping’s outperformance. Eagle Bulk Shipping has secured higher charter rates than the rest of the supramax market in 2019. Currently, Eagle Bulk Shipping has installed 37 of its 50 bulk carriers to prepare for the IMO (International Maritime Organization) 2020 environmental regulations. Eagle Bulk Shipping’s majority of bulk carriers are positioned in the Atlantic at any given time. However, due to scrubber installations, Eagle Bulk Shipping’s more than 50% of bulk carriers are positioned in China. For the full year of 2019, Eagle Bulk Shipping reported a net time charter average of $10,385 per day. New York-listed Eagle Bulk Shipping got all 37 bulk carriers fitted with scrubbers by 1 January 2020. In Q4 2019, Eagle Bulk Shipping fell short of analyst consensus due to off-hire days.
2-March-2020
Japanese shipowner Doun Kisen KK (aka Doun Kisen Co. Ltd) find competitive edge to twitch the market. Private Japanese shipowner are growing their fleets with support from local Japanese banks and overseas business despite depressed dry and wet shipping markets. Japan’s largest private shipowner Higaki-family controlled Imabari-based Shoei Kisen has a diversified fleet of 132 ships and 39 ships on order. Japan’s second largest private shipowner Abe-family controlled Nissen Kaiun has 135 ships and 6 ships on order. Japan’s third largest private shipowner Fujii-family controlled Nisshin Shipping has 73 ships and 39 ships on order. Japan’s fouth largest private shipowner Ehime-based Doun Kisen KK (aka Doun Kisen Co. Ltd) has 95 ships and 9 ships on order.