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.
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