Oldendorff Carriers Says 2015 "Better Than Expected" for Dry Bulk

In a challenging dry bulk market, Oldendorff Carriers says that it has had a more profitable than expected 2015.

So far, 2015 has been a year to forget for most dry-bulk operators, and following warnings in early February that the market was "collapsing" there has been little positive news for the sector since.

However Oldendorff Carriers says that so far 2015 has exceeded expectations and, much like its 2014 year, is now fully expecting a positive full year result, ShippingWatch reports.

"The year is developing better than expected so far. We expect 2015 to be a profitable year," said Oldendorff Carriers in statement.

With about 500 vessels in its fleet, Oldendorff Carriers, alongside Cargill Ocean Transportation, is one of the largest dry bulk carriers in the business.

Both companies are said to have maintained resilience during a market crisis that has otherwise had a widespread impact, with Oldendorff Carriers crediting their ability to secure a part of the market's steady cargo.

"The iron ore volumes are increasing, but the coal volumes remain challenging due to the reduced imports of China," said Oldendorf Carriers.

"The market development so far in our view is a result of a continuing oversupply of vessels, even though the volume of cargoes is very decent.

What adds to that is the fact that congestion levels are low with buyers managing to keep their stocks low, because all commodities are available on short notice."

Oldendorff Carriers says it that, alongside maintaining close relations with customers, it has also tightened its risk management, which paired with the carrier's size, has kept the carrier strong in a difficult market.

The carrier also shares BIMCO's view that the later half of 2015 will be better for dry bulk, thanks in part to increased scrapping in the sector.

"The world fleet is facing more scrapping than expected. This may lead to a better utilisation in the near future," the company said.

Last week, it was reported that the dry bulk sector may be seeing the first signals of a recovery as spot rates and the Baltic Dry Index (BDI) show improvements.