dry bulk ceos bet on strong year despite recession fears
Despite the recent sharp drop in freight charges, demand for dry bulk cargo will remain strong this year, and there is growing concern about the United StatesS.
The chief executive of four major dry bulk carriers said at an industry forum on Wednesday that the recession, weak dollar and high oil prices.
The CEOs of dry shipping said demand in China and other emerging economies would offset the drop in freight costs (DRYS. O)
Star Bulk Carrier Company (SBLK. O)
TBS International TBSI.
O and QMAR, Quintana maritime Limited.
O said at the dry goods CEO Virtual Forum.
Baltic Sea Exchange index of main dry goods.
Buddy, who monitors the main trade routes for soft commodities such as coal, iron ore, cement and grain and sugar, has lost about 47% since hitting a life high of 11,039 in last November.
George economy of dry shipping said profitability would not be affected due to the recent drop in freight charges.
\"On average, a capsized ship will get $90,000 a day for about $6,000, with huge profits,\" he added . \".
Due to strong demand from China and other emerging economies, and due to tight supply of ships, dry bulk freight reached a record high last year and capsized vessels reached $200,000.
Quintana\'s chief executive, Stamatis Molaris, said that the Baltic Dry Freight rate index is only an indicator of the spot freight rate, and did not disclose the future trend of freight rates.
\"In the long run, it has nothing to do with the real and potential fundamentals of our business, and in the long run volatility is also part of the dry bulk business,\" he said . \".
Molaris also stressed that the fundamentals have not changed and investors should not use the index to attract long-term investment.
But it can be used as a short-term trading tool.
\"The fundamentals in 2008, 2009 and beyond are still good and you will see new routes developing,\" said economic MOU of dry shipping . \".
“Even if the U. S.
The economy has slowed significantly, and we are unlikely to see too much impact in our business, \"said moraris of Quintana at a meeting organized in New York.
Investor Relations at Capital Link and Nasdaq international and financial communications.
In addition to concerns about the recession, dry bulk freight this year has also been affected by the lack of fresh goods supply at two major global export centers and the ongoing iron ore price negotiations in China.
Star Bulk\'s chief executive, Akis zirigekis, said: \"The past demand has surprised us and we will see it again.
Oil, dollars and defective products
Tsirigakis dispelled the belief that rising oil prices would erode shipper profits, clarifying that oil was not part of the shipper\'s cost structure.
\"The cost of oil is passed on to the charterers and does not belong to our cost structure and therefore will not affect us,\" he said . \".
Joseph Royce of TBS International said he continues to see an increase in exports from the United States, particularly coal and agricultural productsS.
They become cheaper because of the weak dollar.
Royce also added that with the project business booming around the world, infrastructure development will continue to drive demand for dry bulk cargo such as iron ore and coal.
Economists at dry dock sayprime mortage-
The credit crunch did not affect the company\'s operations.
\"The only way we are suffering from the credit crisis is the stock price, which is unnecessarily hurt.
\"The fundamentals have not changed and the deal will be there and you saw an announcement yesterday,\" he said, referring to EXM, Excel Shipping Ltd. N $2.
45 billion acquisition of Jintana Maritime
Molaris of Quintana says his company selling to Excel Maritime is a huge confidence booster for the shipping market and the right project will be financed forever.
In order to meet the growing demand for dry bulk shipments to China, India and other emerging economies, dry bulk carriers have ordered more ships and are expected to land in the ocean in the next two to three years.
Molaris said that the increase in the order book for the construction of new ships was stimulated by strong demand, and he admitted that he was skeptical about the increase in ship supply, but added that the shipyard\'s
\"We are currently experiencing delays in delivering ships on time from well-known shipyards,\" he said . \". (
Said Sakthi Prasad is in Bangalore.
Edited by Jarshad Kakkrakandy)