News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News". |
31 Oct 2010
Pacific Basin Shipping Ltd., Hong Kong’s largest operator of dry-bulk vessels, forecast an upswing in demand from next month through early 2011 as Chinese steelmakers rebuild stocks of iron ore.
The resumption of Indian trade following monsoons and increased demand
for U.S. grain shipments because of a Russian export ban will also
drive volumes, the shipping line said in a Hong Kong stock exchange
statement today.
The company will continue to look for new vessels after adding 17 ships
through purchases or long-term charters since December as the dry-bulk
market rebounds from last year’s global recession. Spot rates for
handysize ships, the biggest part of Pacific Basin’s bulk fleet, were
30 percent higher last quarter than a year earlier, according to the
statement.
“The overall dry-bulk market improved sooner than we expected following a mid-year seasonal slow-down,” the shipping line said.
Chinese imports of iron ore rose 18 percent in September from the month
before on demand from steelmakers. The Baltic Dry Index, a measure of
rates for carrying iron ore, coal and other commodities, has risen 64
percent from this year’s low of 1,700.
Pacific Basin rose 0.2 percent to close at HK$5.55 in Hong Kong. The
stock has fallen 1.4 percent this year compared with a 6.1 percent gain
in the benchmark Hang Seng Index.
The company has covered 94 percent of 2010 handysize revenue days at
$16,670 per day and 37 percent of 2011 days at $14,230, it said. A
handysize ship has a capacity of between 25,000 and 34,999 deadweight
tons; handymax vessels are typically between 35,000 and 59,999
deadweight tons.
The shipping line has also covered 99 percent of its 2010 handymax days and 109 percent of its 2011 handymax days, it said.
The company had a fleet of 130 owned or chartered dry-bulk vessels as
of Oct. 28, including 90 handysize ships, it said. The company’s
orderbook comprises nine handysize, four handymax and two post-panamax
ships.
Source: Bloomberg