Norden in panamax push
Norden aims to add around 10 panamax bulkers to its fleet as ship prices and charter rates tail off in the second half of this year.
Activity in the market is on the up and the Danish owner feels it is now time to boost its presence in the sector once again.
"We estimate that we have to reach a core fleet of around 30 panamax vessels in order to obtain the critical mass necessary to meet our customers' demands without being dependent on the very volatile prices in the spot market," said Mikkel Fruergaard, head of panamax chartering at Norden.
Copenhagen-listed Norden presently has 17 or 18 panamaxes in its core fleet, of which only two are owned and the rest are on long-term charter.
Writing in Norden's magazine, Fruergaard explained: "We expect that prices on vessels - both time charters and purchase - will drop to more attractive levels later on the year when the grain season in South America finishes.
"We usually see that the market is generally a bit lower in the second half-year and as the supply of new tonnage is simultaneously increasing, the market is likely to be under more pressure in the autumn, which should lead to lower time charter rates as well as lower vessel prices, and we can take advantage of that in order to expand the core fleet."
Including those on short-term charter Norden has around 80 panamaxes in its fleet.
This compares with 135 prior to the 2008 market crash and 30 in the aftermath of the credit crunch.
Carsten Mortensen, CEO of Norden, wrote in the same magazine: "We do not forget for a second that globally, a lot of dry cargo vessels have been ordered for delivery in 2010, and this growth in supply is likely to give some large bumps in the road, which we have to steer clear of."
By Andy Pierce in London
Published: 14:19 GMT, 24 Jun 10 ' updated: 14:42 GMT, 24 Jun 10
http://www.tradewinds.no/drycargo/article562038.ece
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http://www.ds-norden.com/
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