A part of Watch Media

ShippingWatchThursday2 February 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
08/04/2014at 13:59

Platou: Poor 2014 start for Norden and Pacific Basin

The beginning of 2014 looks somewhat slow for dry bulk carriers such as Norden and Pacific Basin, says Norwegian analysts Platou. Difficult conditions on the Atlantic send Capesize rates plummeting by 17 percent.
Photo: Norden
BY OLE ANDERSEN

Major dry bulk carriers such as Norden and Pacific Basin seem headed toward a questionable 1st quarter 2014, according to analyst RS Platou Markets, due to turbulent conditions on the Atlantic, where the two carriers are heavily exposed.

The spot rate for the large dry bulk vessels, Capesize, dived to USD 16,200 per day on Monday, corresponding to a 17 percent decline compared to last week, says Platou Markets.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

Panamax currently operates under extremely difficult conditions on the Atlantic, with rates registering as low as USD 2,800 per day, a development attributed to a vast surplus of ships and a delayed peak season in South America. Meanwhile, there are rumors in the market that Chinese shippers are canceling contracts, which contributes further to the negative sentiment, meaning that operators continue to suffer, says Platou.

Pacific Basin: Bulk on the edge of a turn-around

"We expect improved conditions going forward, however. The mini-stimulus announced from China last week to fast forward infrastructure plans to keep economic growth at 7.5 percent could mean accelerating steel production for the remainder of the year," says Platou, referring to the fact that China's steel production increased less than two percent on average, while the production is now expected to improve by 4-5 percent, as China's GNP has grown 7.5 percent. According to Platou, this means that Capesize rates - isolated - could improve by USD 4-5,000 per day from today’s levels.

Source: RS Platou Markets

Phasing out old contracts in the 4th quarter 2013 wound up too costly for Norden in the past year, and CEO Carsten Mortensen readily admitted that the past quarter was terrible for the carrier.

"We pretty much hit the mark for the year as whole, but this was a very bad quarter for us, and absolutely unsatisfactory," Carsten Mortensen told ShippingWatch on March 11th following the publication of the carrier's annual report 2013, which showed a deficit of USD 48 million.

"The Atlantic was extremelty strong, but we didn't have sufficient available capacity to benefit from it. There was much more cargo to transport in this market, and the rates were very, very high. And some of this also rubbed off on the 1st quarter," said Carsten Mortensen.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

Norden suffered USD 48 million deficit

Norden to gear investments in new strategy

Analysts believe in Golden Ocean fleet growth

Related articles:

  • Norden suffered USD 48 million deficit

    For subscribers

  • Norden to gear investments in new strategy

    For subscribers

  • Photo: Golden Ocean

    Analysts believe in Golden Ocean fleet growth

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Foto: Stolt-nielsen
Tanker

Stolt-Nielsen expects good times ahead for chemical tanker after new profit

Family carrier Stolt-Nielsen saw strong bottom line progress in both Q4 and the full-year 2022. CEO expects the positive trend to continue.
  • Stolt-Nielsen doubles profit – believes market upturn will continue
  • Stolt-Nielsen pushes on for consolidation – ups its stake in Odfjell
Foto: DSV
Logistics

DSV books a much improved 2022 result – but a new reality now awaits

For subscribers

Foto: Zhang Ke/AP/Ritzau Scanpix
Offshore

There aren't enough ships to install giant wind turbines across Asia

For subscribers

Foto: Patrick Hill
Offshore

Creditors in crisis-stricken Dof request bankruptcy proceedings

For subscribers

Foto: Christian Charisius/AP/Ritzau Scanpix
Container

European carrier orders 12 methanol vessels at Korean yard

For subscribers

Wärtsilä's financial loss after the Russian exit has been felt in all corners of the business, says head of marine systems Tamara de Gruyter. | Foto: Wärtsilä
Suppliers

Wärtsilä had to abandon valuable projects after departure from Russia

For subscribers

Further reading

Foto: Christian Charisius/AP/Ritzau Scanpix
Container

European carrier orders 12 methanol vessels at Korean yard

A South Korean yard has received an order for 12 green methanol ships. Methanol is beginning to look like the fuel of the future, says one ship broker.

For subscribers

Foto: Shailesh Andrade/reuters/ritzau Scanpix
Container

Carriers move tonnage from weakened China to especially two other routes

Container liners have to a large extent transferred tonnage from routes out of Asia throughout 2022 to the benefit of two alternative routes in particular.

For subscribers

Foto: Hamburg Süd
Container

Customers react to Maersk bidding Hamburg Süd name farewell: "Tampering with family heirlooms"

Maersk’s decision to rename carrier Hamburg Süd and a string of other subsidiaries by absorbing them into the Maersk brand causes quite a stir with some customers, while others are puzzled.

For subscribers

Latest news

  • Stolt-Nielsen expects good times ahead for chemical tanker after new profit – 11:27
  • There aren't enough ships to install giant wind turbines across Asia – 10:43
  • Creditors in crisis-stricken Dof request bankruptcy proceedings – 10:38
  • DSV books a much improved 2022 result – but a new reality now awaits – 08:53
  • European carrier orders 12 methanol vessels at Korean yard – 1 Feb
  • Dan-Bunkering has millions tied up in collapsed British shipping company – 1 Feb
  • Carriers scrapped 292 vessels on South Asian beaches last year – 1 Feb
  • Maersk becomes logistics partner for Asos – 1 Feb
  • Wärtsilä had to abandon valuable projects after departure from Russia – 1 Feb
  • Freight forwarder acquires the very last jumbo jet from Boeing – 1 Feb
See all

Jobs

  • Financial Controller for International Shipping Company

  • Chartering Manager for Lauritzen Bulkers A/S

  • Fleet Manager

  • Foundation Package Manager - Offshore wind industry

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Junior Finance Business Partner - offshore wind industry

  • Senior Lead, Human Sustainability at Sea

  • Senior Financial Controller

Jobs

  • Financial Controller for International Shipping Company

  • Chartering Manager for Lauritzen Bulkers A/S

  • Fleet Manager

  • Foundation Package Manager - Offshore wind industry

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Junior Finance Business Partner - offshore wind industry

  • Senior Lead, Human Sustainability at Sea

  • Senior Financial Controller

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge