Shipowner Says Eco Ship Savings are Exaggerated

by Ship & Bunker News Team
Thursday November 22, 2012

Fuel-saving ECO ships are not likely to provide shipowners with major savings, Anastasios C. Margaronis, president of Diana Shipping Inc. [NYSE:DSX] (Diana) told analysts on an earnings call for the third quarter of 2012.

"We do not consider the benefit of an eco ship to be in the degree that the yards are trying to present it to be," he said.

"The reason why that someone should invest in new buildings is the timing and the price that you will find the vessel.

"There is no harm done buying an eco ship, but the most important factor is the correct timing of that purchase."

Looking ahead, Margaronis said the company expects continued pressure on the bulk market in the short term, but that in the medium to long-term, it is optimistic that China will generate demand for bulk cargos.

Diana's fleet includes 30 dry bulk carriers, and it expects delivery of two newbuilding Ice Class Panamax vessels in the fourth quarter of 2013, bringing its total capacity to 3.4 million dead weight tonnes (dwt), according to its website.

Some observers in the industry say demand for fuel-saving ships is contributing to an oversupply of tonnage in the current market.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com