EMEA News
Dry Bulk Carrier Copenship Goes Bankrupt in "Extremely Bad" Market
Danish dry bulk carrier Copenship Tuesday filed for bankruptcy, succumbing during a tough time for the industry, Reuters reports.
"We have done what we could to raise the funds to save the company, but we have reached a point where there is not more to do," wrote Michael Fenger, CEO.
Copenship is understood to have operated more than 50 smaller sized dry bulkers carrying grain, iron ore and timber under charter, which will be returned to owners.
Freight rates in the dry bulk sector have dwindled recently, with the Baltic Exchange sea freight index closing close to historic lows on Wednesday.
"First of all, we have found ourselves in an extremely bad dry cargo market," wrote Fenger.
"Secondly, there are several counterparties that have caused us losses, and then thirdly there are different insurance cases that could hit us."
It is understood that Per Astrup Madsen of local law firm Lett will handle the bankruptcy proceedings.
"Copenship expected to turn around the business in 2014 but the dry bulk freight rates continued the falling trend," said Madsen.
According to the report BIMCO recently said 2015 demand for carriers looks to be weak, while the same amount of new capacity will come online as it did in 2014.
In December another Danish carrier, Norden, has said it will likely post a full year 2014 loss of between $230 million and $290 million.
