We take a look at what was said in the market in the last week.
“It’s the kind of deal that ticks a lot of the boxes banks would want to see. There is significant equity supporting it and it’s smart equity from reputable private equity companies. It’s a modern fleet with attractive employment. There’s an experienced management team, there are economies of scale and they’re well positioned within the market.”
Ronny Bjornadal, head of syndications at Nordea makes it crystal clear that Diamond S Shipping’s strategy for moving up into the major league with the acquisition of 30 product carriers is a hit with him.
(Diamond S 30 ship deal ‘ticks boxes’ for banks)
Wilbur Ross has taken a look at the shipping industry and either likes what he sees or has maybe spotted some tasty carrion.
(Cido 30 ship sale signed) and (Wilbur Ross: the ‘king of bankruptcy’)
“Our strategy will be quite similar to what we did at OMI. We will have the big tankers on the spot market and most of the product carriers on time charter. We are quite familiar with the suezmax and products business and understand the dynamics very well.”
Craig Stevenson gets that deja vu feeling.
(Back to the future strategy) and (Diamond S getting that OMI feeling)
“It is not only Koreans who have filed for court protection or collapsed.”
STX Pan Ocean vice-chairman and president Lee Jung-Chul says it is unfair that just becuase a few companies ran onto the rocks the industry has characterised South Koreans as quitters.
(Players say poor risk management is a thing of the past)
“Shipping parties must fulfil their obligations on contracts that they signed. They cannot walk out of it simply if they are in a difficult situation.”
STX Pan Ocean vice-chairman and president Lee Jong-Chul on why you can't ask for a 20% or 30% renegotiation if business is going badly. Sounds as if he has just been given a legal primer.
(Top executive claims ‘restructuring’ contracts can benefit both parties)
“China Cosco’s cash flow is in good condition. Everything goes well with our daily business operations.”
Cosco Qingdao dismisses reports that it is not paying freight hire due to Navios as “only the behaviours of commercial activities and the market."
(Cosco Qingdao rejects default talk)
“Shipping rates stink and nobody is betting on any sort of recovery.”
Urs Dur of Lazard Capital Markets says everyone is getting crushed in a terrible tanker market.
“We expect liners to report a disappointing set of 1H11 results when compared against good 1H10 profits, and companies may provide negative earnings guidance and outlook for the year.”
Citigroup Analyst, Rigan Wong, is also pessimistic about the liner shipping business as he places sell tags on Neptune Orient Lines and Evergreen Marine
“Market conditions are especially favourable for large owners to grow even larger and we anticipate that the percentage of the fleet held by the top Greek names shall increase further.”
Ted Petropoulos of Petrofin sees a challenging shipping market favouring the stronger Greek owners.
(Petrofin analyst predicts shipping slump will last)
“These bankruptcy proceedings are a sham perpetrated by these Dutch debtors, who have no actual connection with this jurisdiction, to harass Credit Agricole and attempt to thwart its ability to realise on its secured interest in its collateral.”
Lawyers from Watson, Farley & Williams don’t mince their words as they oppose a Chapter 11 filing by Antonio Zacchello linked companies.
Clive Richardson denies there has been a rush for the door by fellow managers pocketing big profits in the wake of Canadian pension fund Omers splashing out $520m for majority control of V Ships.
(New era as Omers forks out $520m)
“The guys who bought into our strategy were also those who were prepared to pay most for the business.”
What a happy coincidence for Clive Richardson as he looks forward to a challenging relationship with owners who “think outside the box.”
(Private equity offers ‘thinking outside the box’)
“GNMTC condemns this act of aggression which violates the international commercial maritime law carried out under the umbrella of NATO within EU member state waters, putting the life of crew and the vessel at risk.”
Ali Belhag chairman of Libya’s General National Maritime Transport Co (GNMTC) describes the rebel takeover of the products carrier Cartagena as an “armed pirate attack.”
“We are coming up to three absolutely fantastic years. So far, so good, and we just have to keep up the hard work. We have a simple strategy of sticking to what we have done as it has worked so far....We don’t want to be the biggest but the most profitable broker providing the best service.”
Anders Mjaaland is in optimistic mood as he signs up new clients and makes new hires for the Bergvall Marine team.
(Strategy is paying off for Bergvall)
“I think there are a number of other clubs interested in Vale so we are not counting our chickens.”
A shock revelations from Gary Rynsard that other clubs would like to edge in on Steamship Mutual’s relationship with Brazil’s Vale and its fast expanding shipping business.
(Vale monsters a potential boost for Steamship Mutual)
Jonathan Jones questions whether the European Commission antitrust investigation into the P&I clubs is taking sufficient account of the views of small shipowners.
“There are a lot of small shipowners who are not in the club system and there is a very good reason for that. The system is less likely to suit small owners who do not need the limits and scope of cover delivered. Shipowners have a choice. They can come to a group club or go to the thriving market outside.”
Andrew Bardot of the International Group of P&I Clubs on why many smaller owners are insured outside the mutual system.
