NORDEN says the gradual recovery of the Dry Cargo business in continuing. Image Credit: NORDEN
NORDEN today said its fuel efficiency efforts are set to continue as part of the ongoing cost saving measures for its Dry Cargo business.
The prolonged difficulties for Dry Bulk have been well reported, but the Baltic Dry Index (BDI) today sits at 1247 points - well ahead if the all time low of 291 hit last year - and CEO Jan Rindbo was cautiously optimistic on the sector's future outlook.
"In Dry Cargo, the gradual recovery in both market conditions and our earnings continues, although still at loss-making levels," he said in comments made as part of the company's 2Q and 1H interim report.
Norden says it has now split Dry Cargo into two distinct business units, Operator and Owner, with increased fuel efficiency awareness to optimise vessel operations noted as one of the key success criteria for the Operator unit in particular.
To further increase competitiveness, the programme and fuel efficiency focus will continue after 2017
"NORDEN has continued the cost saving programme to ensure annual savings of USD 20 million
within a 3-year period ending at year-end 2017, said NORDEN.
"By the end of the second quarter, initiatives amounting to annual savings of USD 18.1 million have been realised, which among other things have resulted in a reduction in OPEX of the owned fleet of approx. USD 200/day. To further increase competitiveness, the programme and fuel efficiency focus will continue after 2017."
With tightening regulations governing the sulfur content of marine fuel coming into force in 2020, bunker costs are expected to rise at this time for all in Shipping, be it a result of buying more expensive compliant fuel or investing in technology to provide an equivalent method of compliance.
In June NORDEN's Senior Newbuilding Manager, Alex Hjortnæs, told Ship & Bunker the company was currently investigating which solutions would best enable it to comply with the new 0.5 percent global sulfur cap.