Precious Shipping

Thai-listed shipowner and operator Precious Shipping explained that historically low fleet growth and world economic stimulus should turn into multi-year strong ton-mile demand growth. Bangkok-based Precious Shipping anticipates a strong dry bulk shipping market in 2021 and 2022. Precious Shipping reported a profit of $12.3 million in Q1 2021. Precious Shipping reported an average TCE (Time Charter Equivalent) of $12,157 per day per ship in Q1 2021. Khalid Hashim-led Precious Shipping announced the new ship order book to the existing fleet ratio of 5.56% in Q1 2021 was the lowest since 2000. According to Precious Shipping, dry bulk shipowners are going to make money over the next few years, even if there is minimal scrapping. Precious Shipping foresees that the dry bulk market would further benefit from this tightening of available vessels on the supply side. Thailand-based shipowner and operator Precious Shipping has a fleet of 36 bulk carriers. 12-May-2021

 

Bangkok based shipowner and operator Precious Shipping reported a $37 million net loss in Q2 2020 due to coronavirus recession and settlement with Sainty Marine. Thailand Stock Exchange-listed Precious Shipping’s net loss included a charge of $27 million related to the settlement of its long-running dispute with the shipyard over eleven (11) ultramax bulker carriers. Precious Shipping agreed to the settlement to receive cash as soon as possible and to save additional legal costs. Furthermore, Precious Shipping hurt by the weaker dry cargo market during Q2 2020. In Q2 2020, Precious Shipping’s bulk carriers earned $6,099 per day. According to Precious Shipping, Q2 2020 was far more challenging due to coronavirus lockdown in China. However, Bangkok based shipowner and operator Precious Shipping is optimistic about the future bulk market. Currently, China accounts for 40% dry cargo movement and the rest of the world accounts for 60% of dry cargo movement. Therefore, Q2 2020 was hurt by lockdowns due to coronavirus. In Q2 2020, Precious Shipping had favorably improved the terms of two (2) outstanding loans. 10-August-2020

 

Bangkok based shipowner and operator Precious Shipping won the case in the High Court against Chinese shipyard. United Kingdom Commercial Court dismissed an attempt by Jiangsu Guoxin Shipyard to reverse arbitration awards made in 2018 for canceled bulk carrier contracts. In 2013, Thailand Stock Exchange-listed Precious Shipping ordered ultramax bulk carriers at Chiese shipyard through the amended Shipbuilders Association of Japan (SAJ) form. After the delivery of new-building bulk carriers, Precious Shipping rejected ships due to faulty design and built. Chinese shipyard claimed that bulk carriers were repaired before delivering to the shipowner. After the Chinese shipyard missed the contractual delivery date, Precious Shipping annulled the contracts. United Kingdom Commercial Court acknowledged that the prevention principle did not apply to an amended Shipbuilders Association of Japan (SAJ) Form shipbuilding contract. Therefore, the Chinese shipyard obliged to give notice or communicate with Precious Shipping if the Chinese shipyard required to postpone ship delivery dates. However, in an unprecedented move for a first instance court, the judge permitted for Chinese shipyard to take the case to the Court of Appeal. Shipbuilders Association of Japan (SAJ) Form explicitly states that notification and communication are essential to postponing delivery and cancellation dates. Court of Appeal asserted that conventional notice is required when a shipyard attempts to postpone a newbuilding’s delivery date. Court of Appeal dismissed the case. 11-May-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

 

Thailand-based shipowner and operator Precious Shipping is borrowing $28 million from the Export-Import Bank of Thailand. $28 million is allocated for acquiring second-hand supramax and ultramax bulk carriers. $28 million loan is secured by mortgages on five (5) Precious Shipping’s bulk carriers. Khalid Hashim-led Precious Shipping reported a net loss of $960K in Q3 2019. 20-December-2019

 

Bangkok-based shipowner and operator Precious Shipping is anticipating a pleasant effect from IMO (International Maritime Organization) 2020 low-sulfur rules in 2020. According to Precious Shipping, handy bulk carrier supply will be limited by slow-steaming and scrapping. Thai-listed shipowner and operator Precious Shipping explained that in the handy bulk segment, just 4% of bulk carriers are programmed to fit scrubbers, whilst most handy bulk shipowners are planning to burn LSFO (Low Sulphur Fuel Oil). Precious Shipping predicts that due to the higher cost of LSFO (Low Sulphur Fuel Oil), bulk carrier speeds will be slowed. According to Precious Shipping, new bulk carrier deliveries will not be able to match the reduction in supply due to increased scrapping and slow-steaming. Thai-listed shipowner and operator Precious Shipping reported a net loss of $0.96 million in Q3 2019. 7-November-2019

 

Thai-listed shipowner and operator Precious Shipping reported a net deficit of $2.6 million in Q1 2019. Khalid Hashim-led Precious Shipping reported EBITDA of $10.6 million. Precious Shipping reported total revenue of $30.5 million. Bangkok-based shipowner and operator Precious Shipping had outperformed the key bulker indices. Due to robust demand from minor bulks, Precious Shipping has not been affected by Vale’s dam disaster. According to Precious Shipping, trade tariffs have naturally change the origination of cargoes and make the shipping route more inefficient resulting in larger ton-miles sailed. 7-May-2019

 

Bangkok-based shipowner and operator Precious Shipping lost $32 million arbitration battle and have to pay award to Chinese shipyard over claims that a series of dry bulk carriers did not meet fuel-saving specifications. Chinese shipyard Taizhou Sanfu Ship Engineering won the arbitration battle and London-based arbitrators ruled that Precious Shipping could not withhold payments because the fuel consumption of super-eco dry bulk carriers was higher than specified in the contracts. Precious Shipping CEO Khalid Hashim explained that consumption was as per specification during the shop test but sea trials showed that fuel consumption was between 11% and 17% above what was warranted in the contract. Precious Shipping accepts the arbitration ruling and won’t be appealing. 3-November-2017

 

Precious Shipping’s 2008 built handysize dry bulk carrier 30K DWT M/V Mallika Naree run aground in Elizabeth River Norfolk, Virginia in the USA and no pollution has been reported. American tugs refloated M/V Mallika Naree and steamed to a nearby anchorage. M/V Mallika Naree was carrying cement and steel from France to Virginia. 2-July-2017

 

Thailand based shipowner and operator Precious Shipping posted a $19 million loss in 2016 after losing money on 13 dry bulk carrier sales. Thailand based shipowner and operator Precious Shipping now operating 32 dry bulk carriers and 2 new building orders in China. 8-February-2017

 

Precious Shipping canceled 3 ultramax new-buildings in Chinese Shipyard called Taizhou Sanfu Ship Engineering. Previously, Precious Shipping ordered Taizhou Sanfu Ship Engineering 10 dry bulk carriers which is costing $27 million each. Precious Shipping was dissatisfied with the performance of the 63K DWT ultramax bulk carriers which did not deliver the promised fuel savings. Chinese shipyard will give a $2 million discount on delivered ultramax bulk carriers and canceled 3 ultramax newbuilding orders. Precious Shipping asking $4 million per dry bulk carrier in damages for breach of contract which is arbitrated in London. 28-April-2016