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OSLO: Norway's Ministry of Petroleum and Energy received applications from a total of 46 companies by Friday's mid-day deadline for applications in the 20th licensing round on the Norwegian Continental Shelf.
The Ministry aims at awarding new production licenses around spring 2009. By the same time, the comprehensive Management plan for the Norwegian Sea will be finalised.
The Minister of Petroleum and Energy Terje Riis-Johansen said, "It is positive that this many companies want to aim towards new opportunities in the Barents Sea and the Norwegian Sea. Petroleum activities that are undertaken in accordance with important environmental and fisheries concerns can make a significant impact on employment, industrial development and value creation in the northern areas."
As part of the Government's policy on openness, the proposal for blocks in the 20th licensing round was, for the first time, carried out in public. The Ministry of Petroleum and Energy has also decided to make public a list of companies who have applied and the blocks they have applied for.
Applicant information will be published as soon as the Ministry has reviewed the applications.
The Government has also outlined its plans to put time limits on seismic surveys in the new licensing grounds to help ease concerns on fishing and the environment in coastal areas.
Companies that have applied for production licenses include Norwegian majors such as Aker Exploration, Det Norske Oljeselskap, and StatoilHydro alongside the international big players Eni, ExxonMobil, Hess, Marathon and Total.
In the 19th licensing round 24 companies applied for blocks, 18 did so in the 18th, and just 13 in the 17th compared to the bumper crop this year.
Xanadu,
I checked out that global order book spreadsheet thanks. There is no question alot of cancellations will continue through the next few years. Considering that letters of credit are a problem for the shippers it goes without saying that newbuildings are going to be cancelled at a record pace. The big questions is wheather the marginal players are the only ones who get flushed out. So far it seems to be working out that way. When i see a govt. sponsored program such as Brazil making a move like this its very Soviet like to me. Anytime i have seen a government this involved in the private sector activities its usually poorly run. If these newbuildings are all designed , constructed and run through Brazil expect shortfalls in engineers, steelworkers , you name it. Its not going to go like clockwork thats for sure. In either case 2009 is going to be interesting.
Xanadu,
Is that a bullish sign for the maritime sector. It looks to me like a huge government funded program. Kind of like a new deal but in an energy sense. My impression is those are tankers. It also looks like they are going ahead and are not delaying. Seems as if they are bullish in the energy sector. How does it translate to JF stocks... ?
AD,
Thats a good point and well taken. Well it would appear with the libor correcting i would think its going in that direction.
Hello Xanadu,
Yes i have been following this closely I have been buying and purchased 1000 shares at 1.02 about 10 days ago. With the huge downturn in second hand ship values it looks like the scrap value possibly may exceed the resale value of ships such as those of Brittania. If that happens it looks like the pendulum may swing back. When i see Natasha Boyden saying Dryships may be in trouble. She always likes bashing the bulkers but is there something to it? GO looks somehow in much better position. The only reason i can see is less exposure to the spot market.
Deep Sea missed as im sure your well aware of . I read the
report and i saw that operating expenses are much less the Q2 . Not including debt service i thought the report was good. The quoted cloudiness in the credit market and the payoff of a 200 million NOK bond as the reason of missing. I liked what i read did you get a chance to look at it.. ?
I can post the PDF if you need it...
Have a great day,
Joe
Recs: 1 Pipavav ships face uncertainty as buyer mulls bankruptcy
Pipavav ships face uncertainty as buyer mulls bankruptcy
Golden Ocean paid $36 million to Pipavav Shipyard to build the ships and $178 million was to be paid on delivery, scheduled for between the second quarter of 2009 and third quarter of 2010
P. Manoj
Bangalore: Mumbai-based Pipavav Shipyard Ltd, India’s newest private sector shipbuilder, may find itself grounded with six cargo ships after a buyer announced earlier this week that it might go into liquidation.
London-based Britannia Bulk Holdings Inc., a New York Stock Exchange-listed company, said in a 29 October statement that following a substantial third quarter loss for calendar year 2008, it is considering liquidation or filing for bankruptcy protection, among other alternatives.
Britannia had said in a statement on 8 November 2007 that it would buy six medium-sized dry bulk ships commissioned for building in March 2007 by Bermuda-based Golden Ocean Group Ltd, a dry bulk cargo ship operating firm controlled by Norwegian shipping tycoon John Fredriksen.
Golden Ocean paid $36 million to Pipavav Shipyard to build the ships and $178 million was to be paid on delivery, scheduled for between the second quarter of 2009 and third quarter of 2010. Later, Golden Ocean made a $127 million profit when it sold the ships to Britannia while the ships were being built.
“If Britannia doesn’t take delivery of the ships from Golden Ocean upon construction, that’s an issue between both of them,” Pipavav chief executive Ray Stewart told Mint by phone from Mumbai.
“As far as we are concerned, there is no change in the situation. We have a contract with Golden Ocean who will take delivery of the ships from us upon completion by paying the balance amount of the price agreed at the time,” he said.
Britannia and Golden Ocean could not be reached for comment.
Golden Ocean stands to benefit whether Britannia takes delivery or not, Stewart said. “If Britannia takes delivery of the ships, Golden Ocean would have made handsome profits from the sale. If Britannia doesn’t, then Golden Ocean’s net cost of buying the ships will be greatly reduced because it need not repay the $71 million received from Britannia,” Stewart added.
Golden Ocean asked Pipavav Shipyard to build four Panamax carriers, each with a cargo capacity of 75,000 tonnes, for $35.5 million (Rs156.7 crore then) each, and a so-called optional order for two more, which it exercised on 2 July 2007 at $36 million each. Panamax ships are so named because they are the largest ships that can navigate the Panama Canal with a full load.
Xanadu,
Pickup up more Golden Ocean and more Deep Sea Supply today. Looks like they are heading to higher ground finally. Whether its a general upswing in commodities or people realizing how oversold the maritime sector is. It looks just too good. Here in the states the global desk of my brokerage had 9 anaylist ratings for Golden Ocean and 7 were buy and 1 was hold. Deep Sea Supply had 5 ratings and all were buy.....
Joe
Xanadu,
Here is the 64,000,000 million dollar question. If you were going to buy a JF stock tomorrow for a long term hold which one would it be. I was about to pull the trigger on Deep Sea but im starting to think Golden Ocean is becoming a no brainer at these prices. Since the current market conditions are going to cause a consolidation in the bulk sector eventually rates should rise because of the absence of as much dead weight tonnage on the high seas gong forward due to order cancellations of ships. Then i think of Deep Sea and the record spot rates in the North Sea and that looks like a no brainer also. Flip a coin and let me know buddy.....
Thanks
Joe
Xanadu,
This post is from another message board i watch. Looks like Britania Bulk went belly up and may have stuck Golden with for some vessels resulting in a sell off ...
Today's Golden Ocean Decline
The decline today in Golden Ocean is related to the potential bankruptcy of DWT which recently bought ships from GO. I don't know if these ships have been paid for or not. If not, it will likely affect the near term dividend and likely will result in some serious consideration of the stragegy of selling ordered ships in the future and, of course, the dividends going forward.
Is this a huge buying opportunity or a bad precursur of things to come....?
Joe
Xanadu,
From what i understand they have stated that even with the BDI having fallen they are going to able to pay out a .30 cent divi at minimum for the next four quarters. I have heard alot of skeptics out there but GO is well prepared i agree with you. They dont have the spot market exposure that some of the others such as dryships. Even dryships owner is bullish as he has laid out his own cash for 9 capesize vessels and 2 ultra deepwater drillships. This is a strong signal this market even with hedgefunds selling off commodity levered stocks is more stable than it would seem to be. I dont own dryships but if it hits 10 a share i may pick some up. I also may pick up some more Golden but i am holding tight right now...
Have a great day,,,
Joe
Xanadu,
I havent been checking my holdings every day because i find it just unhealthy having to listen to all the hysteria. I went through my garage and found an old Stereo System and Record LP Albums from the 1970's and hooked it up. Surprisingly it plays amazingly well. Records from the 70's and 80's a turntable. Great stuff. I turned the computer off every other day. Did you happen to year what exchange they are planning to uplist to. If its a bourse it might be ICE or or Amex. What do you think?
Xanadu,
Hope all is well. Yes this turmoil is something else. I just kept my holdings and sold very little. I held all of my JF stocks. Adding to positions in Dessc and FRO. With the internet we are just bombarded with bad news constantly. As these hedge funds unwind it looks like pain for the rest of this year with the only solice in the commodities and offshore companies looks like they may have sold off first. I heard that the december option for oil @ 50 a barrel went from .50 cents to 1.50. I am just holding all my JF stocks because i know they will weather this storm. As for others such as DHT. and FREE who knows. Looks to me like all the stocks on the Oslo Bors took a great hit. They may go lower but it looks way oversold at this point. Golden im just holding but not adding right now. What do you think...?
Have a good day,
Joe
Independent Tanker has two tankers up for sale...
For sale: Front Voyager, Suezmax SH
Its on Hellenic web address below
http://download.hellenicshippingnews.com/pdf/weberseas/WeberSeas%20Weekly%20Report%20September%2026-08.pdf
Any thoughts. Looks like a sale could bring in alot of cash...
Yes indeed,
I keep reading about a total collapse of the Chinese steel production. From everything i have been reading though it seems like the Chinese stockpiled at least 1/3 more iron ore than was originally thought. My take on this is that when the Chinese stockpiled commodities in the past they always fell short of having enough to totally drive prices of those commodites extremely low. So this time they deliberatly stockpiled much more than anyone could have imagined. This caused a complete meltdown of the charter rates and the commodity prices. Just following the money would indicate the Chinese benefited from this in the short term. I think the ore producers realized if they caved in it would set a bad precident. Once the Chinese run out of stockpiled ore and coking coal they wont be able to make steel. The BDI should bounce back. Factor in the U.S. financial bailout package and the commodity prices oil included should rebound. I think there is a chance the whole thing could backfire on the Chinese. They just feel they need to drive commodity prices down by hoarding but its just the cycle and they pendulum should swing back in favor of the ship owners and ore producers soon. I could be wrong though. I have a feeling about it though...
Looks like a possible upswing this upcoming week for the Dry Bulk shippers. As the Chinese prepare for the national Holiday 10 days from now they must get their chartering in during this upcoming week. Some analysts are predicting flurry of activity during this time. What do you think Xanadu,>?
Vale's Demands Encourage China's Scattered Steel Industry Consolidation
Friday, 12 September 2008
Shortly after the dragged-on 2008 negotiation for long-term iron ore supply contracts concluded, Brazil-based Vale, the world’s largest iron ore supplier, seeing it had been out-bargained in the China market by its vast Australian competitors BHP Billiton and Rio Tinto, is doing its best to raise its present contracted iron ore price for Chinese and other Asian steel makers in 2008 by as high as 20%. This has naturally triggered a strong reaction from Chinese
steelmakers. In response, some analysts are suggesting that China’s dispersed steel industry should form a few sourcing groups to gain some leverage in their upcoming negotiation with the world’s three iron ore giants for the long-term iron ore supply contract in 2009.
Vale now wants its Chinese clients, with whom it has already signed a long-term supply contract, to pay the same, higher, prices as its European clients. The Chinese firms have replied that they would make their decision after discussions with the China Steel and Iron Association, which is known to be unenthusiastic about any price hikes.
Although domestic steel makers have not yet succumbed to Vale’s demands, the dispute will certainly affect negotiations for the 2009 iron ore supply which will begin in two months.
Vale admitted yesterday in a declaration that the company is consulting with its Asian clients over a price increase. Currently iron ore prices for different varieties in the Asian market are 11.0% to 11.5% lower than those in the European market. It has been reported that Vale wants a 20% price rise, but as yet there has been no confirmation by the company.
Vale emphasized it was talking with steel companies, and could not guarantee an agreement would be reached on a higher price. If they succeed, the price hike will bring Vale a boost of nearly 3% of the total income of fiscal year 2007/2008. Vale’s total income in that fiscal year reached $35.5 billion.
During the 2008 negotiation, the two Australian suppliers, BHP and Rio, haggled a higher price than Vale, breaking a pricing mechanism that had lasted for 28 years.
The steel industry had supposed the 2009 negotiation would be more difficult, but had not expected Vale to make any move before the negotiation by asking for higher prices to balance the Australian suppliers’ gain in July.
Luo Bingsheng, vice-chairman of China Steel and Iron Association, says the organization was in discussion with steel makers and could not reveal details for the moment.
Zeng Jiesheng, an analyst for mysteel.com, said although sea freight of Brazilian iron ore is costlier than that of Australian ore, Vale has its own advantage as the quality of its ores is better. Vale has always tried to maintain the traditional pricing mechanism. Since sea freight has seen a drastic decline, it will be even more dissatisfied.
Due to the global economic downturn, iron ore buyers have gained weight in the supply/demand relationship. The iron ore spot price is getting closer and closer to the contract price, and may even fall below it in the near future. Under such circumstances, “Vale’s demands are out of accord with international game rules, and it will not be accepted by the steel industry,” said Zeng Jiesheng.
As the high-quality iron ore market is still dominated by the three international giants, Wang Jianhua, vice-director of mysteel.com, suggests China should promote steel industry consolidation, organizing three to five groups to reduce sourcing and transportation costs and increase pricing power. Wang Jianhua thinks China can now form four such groups: the four large state-owned steel companies led by Wuhan Iron and Steel (Group) Corporation; private large and medium sized steel companies led by Shasteel; small- and medium-sized state-owned steel companies led by Sinosteel; and other steel makers and steel trade and logistics companies led by Minmetals.
Xanadu,
Thanks for that great information. I couldnt imagine JF selling ITCL but im really just starting to understand this industry. I was hoping that ITCL would become a long term investment similar to Knightsbridge . But if JF sells a tanker or the whole company and makes a terrific profit for the investors well i really cant complain. Lets hope thats the case. Hope you had a great vacation. Looks like you picked a good time to go. I know your long in most of your positions so you didnt have to watch the upheaval that seems to have taken place temporarily anyway. Alot of people are under the impression that oil is going to be free soon. I think they are going to be sadly mistaken. Especially when the winter heating oil season starts here in the states. I think FRO will be riding high again very soon. GOGL looks to have made quite a nice profit selling that capesize bulker. 42 million profit. I wonder how that will effect the next divi. They talked about a .30 cent divi for the next 3 quarters did you hear anything about that. I would be happy with that anyway. I think they have another capesize somewhere that is going to be sold. Im not quite sure though. Have a great day buddy, I am at my office and its a busy friday. I will check for any postings later today. Have a great weekend.,
Joe
If i didnt know any better i would think that they dropped the price just in time for people to buy those trucks and SUV's while they are still on sale. Cheap Cheap Cheap. Although we are past the summer driving season and not yet into the winter heating oil season. Its pretty reasonable to think that prices will remain low for a while unless there is severe refinery damage due to IKE. In either case its going to be an interesting autumn.
Xanadu,
I hear John Fredrickson is thinking about selling Independent Tankers Limited. Have you heard anything about that? Please let me know.
Thanks
Joe
Xanadu,
I hear there is some talk about John Fredrickson selling Independent Tankers Limited. I was wondering if you knew anything regarding that.
Thanks
Joe
Xanadu,
What is your feeling about oil dropping so significantly. Is it just a minor blip on the radar or something we should be very concerned about? As in commodity demand lag. Seems like an overreaction of the market.
Joe
Bulk Revival by Years End
Norden says year will close with a dry bulk revival
Sandra Tsui, Hong Kong - Monday 1 September 2008
DANISH tanker and bulker owner Norden expects the dry bulk shipping market to improve in the last quarter of the year after a rather rough third quarter.
“The dry bulk market will pick up at the end of fall and it will be fine in the fourth quarter,” said chairman Morgens Hugo at the naming ceremony of the 38,500 dwt product tanker Nord Snow Queen in south China’s Guangzhou today.
As a major player in the dry bulk trade, China had been focusing on the Olympics and had halted some of its productions, Mr Hugo said. Once industry in China is back to normal, the market will sharpen up a bit.
China and India together make up 30% of the world’s bulk cargo flow, Mr Hugo said.
The company maintains the profit estimates it made earlier, that it will earn net profits of between $950m and $1bn for the full year of 2008.
Norden has already had 84% of its dry bulk tonnage fixed for 2008 and its average cost is about $13,000 per day, which is lower than the market average because the firm has built up its capacity over a long period, said chief executive Carsten Mortensen. Norden also has about 40% of its tanker tonnage fixed for the remaining days in 2008.
The firm is confident of the outlook for 2009, as there is still firm demand in the market.
The Nord Snow Queen is the eighth vessel Guangzhou Shipyard International has built for Norden, which has ordered 13 vessels from GSI. Of these, 10 are 38,500 dwt or below and three are 50,500 dwt product tankers. The last 50,500 dwt tanker GSI will build for Norden is slated for May 2011 delivery.
Xanadu,
I just read the quarterly report where it stated that 1 ship is coming off its current charter to a market rate which will increase its daily rates from 33.000 to 68,000 which will make the earnings .17 cents higher. In 2010 more ships are coming off current charter contracts. Looks very good to me.
Part of the quarterly report was that they feel the companies stock is well below its actual value. I would totally agree that the stock price is well below book value.
Deep Sea Supply's quarterly presentation contained a similar statement and i would strongly agree with that also.
I am enthusiastic about Dessc. Very much so. The offshore supply boat sector seems to really be heating up just at the right time...
Xanadu,
Thank you for posting the Independent Tankers quarterly results. After reading i have a very positive feeling about the future for the company and shareholders. I just wanted to get your insight about that. How do you feel about it as opposed to last quarter....
Thanks
Joe
Looks like the Offshore Supply Boat sector is heating up nicely in the North Sea and elseware. Judging from the recent spike in the share price of Deep Sea Supply and the good news coming from LLoyds List about the need for more offshore supply boats in the North Sea. Keeping a close eye on this one. I own stock in this company. Its a long term hold....
Xanadu,
I think it is also a long term plan. They are going to use the extra issue for the proposed buyout of OSG further enhancing shareholder value.....
Fredriksen's support of fledgling yard paying off
From tradewinds....
Fredriksen's support of fledgling yard paying off
Norwegian shipowner John Fredriksen's faith in fledgling Chinese yard Zhoushan Jinhaiwan already appears to be paying dividends.
The yard launched simultaneously its first vessels mid-week, a pair of 110,000-dwt crude-oil aframax tankers for Fredriksen-controlled Seatankers Management.
Singapore-based Frontline commercial director Jens Martin Jensen confirms the tankers are "well ahead of the building schedule" and that Jinhaiwan is expected to deliver several months early.
The greenfield yard has attracted a clutch of contracts from Fredriksen's Golden Ocean including 12 kamsarmax and five capesize bulkers.
Jensen tells TradeWinds the quality of ships so far at Jinhaiwan has been "very satisfactory".
The privately owned yard, located in Zhejiang province, south of Shanghai, is controlledby real-estate developer Huang Shang Nian.
Various owners have followed Fredriksen's lead by ordering capesizes there, among them Nicholas G Moundreas, Geden Lines, Zhejiang Ocean Shipping Co (Zosco) and Rizzo-Bottiglieri-De Carlini (RBG) Armatori.
Hi Xanadu,
If i had to guess i would bet they either had issues with the shipyard which i would have thought would have been cleared up by now. Since there has been no news it is possibly the buyers financing fell through. If that happened i beleive they would be entitled to about 1 percent of the sale price in the form of some sort of bond or collateral. Its anyone's guess though. Maybe the sale did go through and they are just waiting for partial payment of the funds.. Lets hope it went through....
Take Care
Joe
Xanadu,
Do you know if these ships ever arrived from the shipyard. They were supposed to be sold in May but i think they were delayed. Im just curious. Also it looks like Excel Maritime did really well last quarter. With the additional ships they have now it looks like they doubled their earning estimates. I would say now is as good time as any for anyone to jump in.....
Below is from Golden Oceans website i was posting about above on the two ships......
Simultaneously the Company has agreed to sell the two vessels for net sale proceeds of $124.1 million in total. Delivery to the buyers is expected to take place in May 2008.
This transaction will give a positive addition to net income of approximately $77.9 million, and is estimated to release approximately $88 million in additional liquidity. In August 2006 the Company paid $38 million to take over the bareboat agreements for the five Panamax vessels under the deal with Clipper Bulk Shipping Ltd. Four out of these vessels are now sold and the Company does still keep one remaining 1994 built vessel. The company will continue to pay $5,600 in bare boat hire for this vessel until June 2011 when the Company has an option to buy the vessels in accordance with the original agreement.
This sale does not represent a change in strategy, but is rather showing the Company's ability to make profitable asset play and secure historic high earnings on portion of its fleet going forward. The sale of Golden Jade and Golden Jasmine should be seen up against the sizeable new building commitments Golden Ocean has taken on during the last year. From such point of view the deal constitutes a natural renewal and increased focus on high quality modern tonnage.
October 25, 2007
Hamilton, Bermuda
Contact Persons:
Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 41
Geir Karlsen: CFO, Golden Ocean Management AS
+47 22 01 73 53
GO is Golden Ocean it is a dry bulk shipping company listed on the Oslo Bors. Its symbol is GOGL or in the U.S. it trades GDOCF...
Im strongly considering buying some more GO at this point. Im not even going to get a lot of it. Just to build a little more on this current weakness. I would consider it for sure. The dividend coming up may well exceed .55 cents a share . This wont stablilize until the Olympics is over with. Then in september the rates should climb nicely. Lets keep our fingers crossed....
Ad,
Anytime. I have actually learned so much from the posters on this board. Although not that many people post. They are usually right on the money. I am a relative newcomer but i am learning more every day...
Joe
Xanadu,
I will definately take your advice. I may just pick up some Knightsbridge. Paragon (PRGN) Declared their dividend yesterday. .50 cents a share. They currently have somewhere in the area of 700,000 dead weight tons on the oceans. Mostly panamax vessels. Their charter book looks to be very well managed. This quarterly dividend was a 14 percent increase over last quarter.
I agree with your assessment of the BRIC countries as this seems to just be the tip of the iceberg with them as far as growth is concerned. We must not forget Vietman in all of this. I think BRIC is going to have to become BRICV. As the letters get added to that jarble our dividends will pile up as well. Funny thing about this is the every time the so called market experts make a analysis they always seem to be way off base.
Your right on the money about the cancellations of new ship buildings. What they fail to mention in these reports is that when small shipyards dont get paid the chances are they will be out of business in no time. They may eventually be purchased by another ship builder but that takes time. Some may never get back in business. Thats another trickle down effect of lack of liquidity. I see the effect of that as less shipyards. That combinded with high costs and much less tonnage than they are predicting will be available in 2009 and even less in 2010.. I look to see an industry consolidation as a direct result of that. Maybe not on a large scale but there will be some.
Its all good for us though...
Good day my friend....
Joe
I read Lloyds List and Capital Shipping , Hellenic Shipping and any Rogoulous Dry Bulk newsletter all of the above. Without exception they all predicted a summer lull and this year because of the olympics it was expected to be even more pronounced. The "Insiders" may have sold some sizable portions of their portfolios to buy back and make a quick million here and there. Im holding GO and possibly buying more if it dips anymore. I expect this next quarterly dividend to be anywhere from .60 U.S. to ,72 That is certainly worth holding on to. I believe this current lull will wash away as soon as the Olympic games are over. There was an article in the Wall St. Jornal yesterday saying China's economy is shaky. I dont think its China's economy that was the problem i think it was the overall liquidity in the World. Banking woes etc. It looks like we are near end sub prime suprises and at the start of a slow recovery. I dont expect this to take place overnight its going to take at least a year. I think China is fine i dont agree with the statements in the WSJ newspaper. China has no subprime banking issues as their banks are solid. They will also need plenty of raw material . Coking Coal, Steam Coal, and Steel plenty of it to rebuild after this most recent earthquakc. I dont see this happening in ernest until after the Olympic games since their focus is now on security and looking environmentally freindly. They are not going to leave anything to chance.
Have a good day...
Joe
Hi Xanadu,
What do you think about the recent dry bulk pull back. Would you say its a result of the oncoming Olympics in China and a summer lull? or Would you say its a new trend and a result of a worldwide malaise in the economics of the new emerging nations...
Milner...
I watch Black Gold on Tru TV and one well in West Texas can pump 10 million dollars worth of oil in 1 year time. Thats with state of the art technology and good crews. They are approximately 6000 feet from the surface. I dont think chag is drilling that deep and their rigs are old. 1 drill bit is 130,000 dollars so its going to take uplisting get the needed capital to get the new infrastructure in place im sure they need. Hopefully its in the cards. If that happened we would be sitting pretty for sure..
SHIPBROKER EA Gibson says this week’s hike in steel prices has placed an unspecified number of shipyards in South Korea and China in ‘dire straits’, with as many as 150 capesizes on order “that will not be delivered”.
That represents about 20% of the existing orderbook of nearly 720 vessels,
Xanadu,
This may signal a decline in the overall fleet for new dwt. If 20 percent of newbuildings dont get built after all its going to give rates alot of bouyancy... Looks good. You were right on the money.......
Joe
My money is on JF. I think OSG is a domino waiting to fall pretty soon and TUI is the next in line. If the board of directors of TUI wanted the company to be utilized for the best and highest purpose they would go along with the JF plan. In any case he may just want Hapag LLoyd. The big buzz stateside is all the talk of the OSG situation. Like you previously posted OSG is worth alot just for its newbuildings which at last count was 41 in the pipeline. This is going to be some ride. Alot of talk is about using OSG to reverse merge with Golden Ocean. Since OSG has a dry bulk arm already. Its going to be a boom for investors of JF companies if and when this goes through. It will probably create the two largest maritime shipping companies in the world. We will have to see...
Have a great weekend..
Joe
Frontline management is certainly the best in the business. They just put one blockbuster deal after another boom boom boom. Looks like next quarter is going to pay wonderful dividend. Cheers...
Xanadu,
Thanks,
I think its a long term hold also. The nuts and bolts of the setup with this company appear to be similar to Knightsbridge tankers. The only difference i see is that Knightsbridge didnt go public until the ships had already come off long term charter contracts. I am thinking about making another purchase of Deep Sea Supply. I like that the most right now. Maybe also some Dock so i will go there with a little ITCL to round it off then.
Thanks Buddy,
Joe