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In February, the crude tanker orderbook increased to 74.3 million DWT from 73.8 million DWT in January, driven by the rise in VLCC and Suezmax vessels.
Five-year VLCC prices in February increased to $80.9 million from $80.7 million in January. Ten-year VLCC prices fell to $52.2 million from $52.8 million.
Newbuild VLCCs are the largest ship used to transport crude oil long distance. According to Lloyds List, buying a newbuild vessel is better than secondhand.
On a year-to-date basis, the Baltic Dirty Tanker Index declined 13.1% to 769 on March 20. On a year-over-year basis, the index recorded an 8.2% increase.
Diana Shipping’s investment strategy is to preserve the strength and integrity of its balance sheet and gradually increase its leverage as asset values weaken.
According to Diana Shipping’s (DSX) management, world crude steel production reached 1.66 billion metric tons in 2014. It was up by 1.2% compared to 2013.
DryShips (DRYS) commented that its total dry bulk fleet’s compound annual growth rate for 2005 to 2014 stood at 9.1%. Its fleet increased by 4.4% in 2014.
In 2014, Chinese iron ore imports were up 14% YoY. Domestic iron ore production only increased by 5%. There are planned expansions for global iron ore mines.
History reveals that increases in world GDP growth generally led to increases in marine transportation rates. Since June 2014, crude oil prices fell 50%.
Navios Holdings has a strong balance sheet. It has low leverage levels and a healthy cash balance. As of December 31, 2014, the company recorded $250 million in cash.
Navios Maritime Holdings (NM) is a global seaborne shipping and logistics company. It’s focused on the transport and transshipment of dry bulk commodities.
In 4Q14, LR2 product tanker rates touched their highest levels since 4Q08. Record high levels of Asian naphtha imports from the West supported LR2 rates.
Teekay Tankers’s recent delivery of LR2 vessels were already trading in its Taurus pool. The fleet started generating revenues immediately upon delivery.
TNK CEO Kevin Mackay noted that in the past three months, average crude spot tanker rates were at their highest since the strong 2008 winter tanker market .
TNK’s chartering strategy includes vessel employment via a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading.
The operations of Navios Maritime Acquisition Corporation (NNA) are managed by Navios Tankers Management, a subsidiary of Navios Maritime Holdings (NM).
To date in 2015, the Guggenheim Shipping ETF, an index weighted with dry bulk shipping companies, increased 1.3%, while the Baltic Dry Index declined 28.3%.
Stockholders provided the equity through equity offerings, operating cash flows, and long-term borrowings. These funds have been treated as capital expenditures.
For the nine-month period ending on September 30, 2014, voyage revenue increased by $29.9 million, or 34%, to $117.9 million from the same period last year.
Tankships seeks to expand its fleet size through timely and selective acquisitions of additional secondhand modern tankers and the available optional vessels.
Despite a fall in the crude oil prices, tanker firms are looking to raise capital through the US markets. Crude prices recorded a dip of 46.8% in 2014.
The contango already led traders to stretch the available storage space for crude oil and products in Europe—despite a 30% capacity increase over the past five years.
Angeliki Frangou, head of Navios Group, expects 2015 to be an uncertain period. Factors include anemic growth in Europe and deflationary fears in Japan.
Navios Maritime Midstream Partners seeks to continue growing and diversifying its fleet of owned and chartered-in vessels though strategic acquisitions.
For 2014, the total coal imports were 291.22 million tonnes—compared to 327.1 million tonnes in 2013. This was after many years of double-digit growth.
The National Bureau of Statistics revealed that the December crude steel output in China increased 7.6% to 68.09 million tonnes. Steel output was up 1.5% YoY.
On a weekly basis, vessel prices indicate the current trading prices of Capesize, Panamax, Supramax, and Handymax vessels. They also indicate the weekly changes.
China accounts for a major share of dry bulk commodities’ imports and exports. In the past three months, the Guggenheim Shipping ETF (SEA) dropped 6.1%.
DHT Holdings is an independent crude oil tanker company whose fleet consists mostly of VLCCs and a few Suezmax and Aframax vessels trading internationally.
The Baltic Dirty Tanker Index widened to 862 on December 24, 2014, from 639 on October 1. It recorded a 34.9% increase as China increased imports of raw goods.
Energy transport is driven by global economic growth and dislocation of consumption and production, reflected in cyclical freight rates that vary according to vessel supply and demand.
Despite a decline in fuel prices, the Baltic Dry Index has recorded an approximate 40% drop since the start of November and a 62% decline year-to-date.
Star Bulk management stated that commodity demand remains healthy, while substantial supply expansion has resulted in surpluses across various commodity markets.
This part covers Star Bulk’s cash flow numbers given the company’s rapid expansion of its fleet size through acquisitions and other related developments.
Star Bulk’s management fee income is at $0.3 million compared to $0.5 million for 3Q13, due mainly to a decrease in the number of vessels under management.
Star Bulk’s depreciation and interest costs Star Bulk Carriers Corp.’s (SBLK) depreciation expense increased to $10.7 million for the third quarter of 2014, compared to $4.0 million for the third quarter of 2013. The increase was due to the increase in the company’s average number of vessels in its fleet and the corresponding increase in […]
For 3Q14, Star Bulk recorded total voyage revenues of $36.5 million compared to $17.3 million for 3Q13. This increase is due mainly to its growing fleet.
