World News
Pacific Basin Sees Bulk Segment Recovery in 2014, 2015
Hong Kong-based bulk carrier Pacific Basin sees a recovery in the segment in 2014 and 2015 that will justify big orders it's made recently, industry news site ShippingWatch reports.
"I am optimistic," said CEO Mats Berglund.
"We gradually see a stronger bulk market with higher demand than supply which supports our optimism."
In less than a year, Pacific Basin has added 42 vessels to its fleet, including 18 newbuilds that are now on order from Japanese shipyards as well as secondhand ships.
Berglund said demand will grow at 8 to 9 percent while fleet growth moves at a slower rate of 5 to 6 percent.
"It still remains to be reflected in the rates that are tight but we are definitely seeing a stronger market," he said.
"With the new vessels coming in we are guiding for growth."
To gain a competitive advantage, Pacific Basin has stuck with ordering Handysize and Handymax ships, but Berglund said he's not interested in the current industry focus on eco-ships.
"A ten year old Japanese vessel in good condition can be just as fine an allocation of money in terms of return on investment," he said.
"The eco advantage has been exaggerated by the yards as all ships gradually are getting more efficient."
The company announced in December that it was acquiring seven ships, saying vessels are being sold at attractive prices in the current market.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 551.00 | 3.00 | 672.00 | 5.50 |
| Rotterdam | 515.50 | 2.50 | 652.50 | 3.50 |
| Houston | 540.50 | 4.00 | 670.00 | 5.00 |
| Fujairah | 542.50 | 1.00 | 747.00 | 3.00 |
| Global 20 Ports Average | 573.50 | 1.50 | 756.00 | 2.00 |
| Global 4 Ports Average | 537.50 | 1.00 | 685.50 | 1.00 |
| Global Average Bunker Price | 624.50 | 0.50 | 801.00 | 0.00 |
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