IVS Bulk

Singapore based shipowner and operator Grindrod Shipping set to increase its stake in IVS Bulk. Grindrod Shipping has agreed to to buyout one of its two joint venture partners of IVS Bulk. CEO Martyn Wade led Grindrod Shipping would increase IVS Bulk ownership percentage to 66.75%. Two joint-venture partners in IVS Bulk are Sankaty European Investments III and Regiment Capital Ltd. Furthermore, Grindrod Shipping is aiming to to acquire the additional 33.25% stake of IVS Bulk. However, New York listed shipowner and operator Grindrod Shipping explained that the remaining partner intends to retain its 33.25% stake in IVS Bulk. According to CEO Martyn Wade, Grindrod Shipping’s acquisition of the additional IVS Bulk stake would allow Grindrod Shipping to consolidate its 12 bulk carriers. Grindrod Shipping was publicly listed in June 2018. Grindrod Shipping has reported loss of $19 million in Q2 2019, including $4.3 million impairment loss on ship sales. Grindrod Shipping’s loss reflects weaker dry bulk markets, partially offset by a stronger product tanker market. Grindrod Shipping struggle to outperform the relevant shipping industry benchmarks in both dry bulk and tanker segments. Grindrod Shipping has reported Handysize TCE (Time Charter Equivalent) $7,030 per day while Baltic Handysize Index (BHSI) was $5,753 per day in the first half of 2019. Grindrod Shipping has reported Supramax TCE (Time Charter Equivalent) was $10,481 per day while Baltic Supramax Index (BSI-58) was $7,807 per day in the first half of 2019.

On the tanker market, Grindrod Shipping has reported MR tanker TCE (Time Charter Equivalent) per day of $14,276 during the first half of 2019. Grindrod Shipping’s CEO Martyn Wade expect the product tanker market to improve due to the increase in refining capacity and dislocation between refiners and end users combined with the low newbuilding order-book for MR tankers.

Grindrod Shipping’s CEO Martyn Wade believes that the long-term fundamentals appear positive which is reflecting the reduced supply outlook combined with steady demand especially for minor bulks Grindrod Shipping’s fleet. Besides, International Maritime Organization (IMO) 2020 sulfur regulations may have a positive impact on the overall shipping market.