|
The global shipping industry status
Weak Chinese import demand and excess supply orders ship transporting coal and other dry bulk commodities Ships profit greatly affected, causing the ship operators were forced to sell its shipbuilding assets facing emergency to raise the plight of working capital even filed for bankruptcy.
This year, the dry bulk shipping prices plummeted. To measure the overall average price of dry bulk shipping, also shipping industry economic indicators Baltic Dry Index (BDI) last month fell to its lowest point since 1985, he founded 471 points.
December 3, 2015 the same day, the largest model of Capesize bulk carriers (Capesize) of short-term lease fee of $ 4,897 / day, far below the $ 20,000 in August / day. The rental fee is typically used to maintain operations and financial condition at $ 13,000 / day. Since the end of September last year, the dry bulk shipping market freight Baltic Capesize BCI index all the way down.
Now the cost of dry bulk transport acquired has been unable to pay for daily operations, not to mention the other financial expenses. New York-based corporate finance consultant Basil Karatzas in an interview with the Financial Times in an interview that the industry has sustained losses 18 months, the cumulative loss thus should not be overlooked, if a ship operator owns 10 tankers, and every day Boats loss of about 3000-4000 dollars, then the day of the loss will reach $ 40,000, this figure is multiplied by 30 days, and then multiplied by 12 months, The resulting annual loss will be enormous.
Faced with this situation, many companies are forced to sell its assets to deal with the crisis the ship. Greek shipping family business renowned DryShips announced third quarter impairment of $ 820 million of capital, in September Dryships announced the completion of its 17 bulk carriers of sale and purchase agreement in December last year, while the rest of the ship has entered the state sale . Dryships is not the only one forced to sell assets of shipping companies. In late November to early December last year, at least three companies listed in New York announced the sale of a vessel in order to obtain capital, including Scorpio Bulkers, Star Bulk and Paragon.
Chief Executive Officer of Paragon Shipping Michael Bodouroglou said, because profit is less than expenses, carriers are large burn. He said: "These days, every one who is forced to sell assets to do so, especially those who sold high-quality assets.
In addition to the forced sale of its assets, some companies are also seeking consultation and their bank to repay the loan in batches, to temporarily stop the debt agreement and the manner in overdue payments to alleviate the shortage of cash flow problems.
Some shipping companies have even filed for bankruptcy. Danish veteran trader Copenship shipping and dry bulk shipping companies first central Japan Kisen Kaisha and its wholly-owned subsidiary of Star Bulk Carrier Co. SA have filed for bankruptcy in the last year, while South Korea's largest dry bulk shipping, one of the big wave of international shipping We have entered the bankruptcy process.
The main cause of dry bulk shipping market is the oversupply of dry bulk shipping industry, as well as a slowdown in China lead to a reduction of its import demand for commodities.
Earlier this year there are reports that a large number of private enterprises in the shipping industry investment resulting in excess capacity. According to "International Finance" report, along with private equity firms to invest billions of dollars in the shipping industry, setting off a wave of boat purchase, the shipping industry is increasingly facing the pressure of excess capacity. Tanker Stolt Nielsen Company's Chief Financial Officer Jan Engelhardtsen has said that private equity firms to invest heavily in the shipping industry, but this investment will actually destroy their pursuit of market prospects
In addition, Chinese imports exacerbated weak demand for dry bulk shipping industry weakness. Wall Street knowledge mentioned earlier, China's economy has been slowing down for several years, but the recent signs of a sharp slowdown in the economy is emerging. In November, China's manufacturing PMI fell to the lowest in three years, and is the third consecutive month of manufacturing contraction. With factories in China to reduce imports of iron ore and other goods, dry bulk transport being the biggest blow. As of August this year, Hong Kong's container traffic has declined for 12 consecutive months of year, some traffic is transferred to the mainland China.
Jiang Ming shipping analyst at Haitong Securities, said the past two years, the entire dry bulk supply and sluggish demand, of which China's economic slowdown is the main reason. "China's steel demand is low and these large-scale emergence of new tonnage of the ship, so that the dry bulk market fall since the last century since the mid-1980s, the worst situation." The Chinese dry bulk shipping trade growth in 2015 is expected to have dropped in from 5-6% to zero.
|
