Asia/Pacific News
Singapore's BW Group Looking to Pick Up Distressed Dry Bulk Assets
Singapore-based BW Group (BW) is looking to take advantage of distressed assets now on the market in the troubled dry bulk shipping sector.
In an announcement last Wednesday BW said effective April 1, 2016 Christian Bonfils will be the head of its newly established BW Dry Cargo.
"Christian brings with him many years of experience in the international shipping industry, and in particular dry bulk shipping. We welcome a strong leader with a keen sense of the business," said Carsten Mortensen, Group CEO, BW Group.
Bonfils was previously the founder and CEO of Nordic Bulk Carriers and Custodia Shipping.
Bonfils' mission will be to pick up second hand dry bulkers from companies now suffering from historically low shipping rates, something that Seanergy Maritime Holdings Corp recently noted had pushed vessel values down to 30-year lows.
With markets having reached what Emanuele Lauro, chief executive of Scorpio Bulkers Inc., described in January as "Armageddon level," dry bulk companies are reporting huge losses and are selling off assets in an effort to stay in business.
This presents an opportunity for companies such as BW to pick up assets at bargain prices.
"In a current climate of ultra-distressed asset prices in dry bulk shipping, BW is exploring to establish a presence in this sector," an unnamed BW spokesperson was quoted as saying, adding that BW Dry Cargo will be looking at assets in the 50,000–90,000 dwt bulk segment.
"Purchasing vessels currently on water is part of our fleet renewal programme, and is in keeping with our commitment to provide a fleet of quality vessels for our customers."
In February of 2016 Ship & Bunker reported that an industry CEO had issued a warning about an approaching wave of bankruptcies in the dry bulk sector as the BDI dropped to its current all-time low of 290.
