We take a look at what was said in the market in the past week.
“We could not get borrowings from the banks and the re-negotiation of the charter contracts did not turn out favourably as most owners were not positive to it. This is one way to preserve the interest of our financers and other concerned parties. It will minimise the impact on them.”
A KLC spokesperson as the Korean dry-bulk operating giant runs for bankruptcy cover amidst stacked-up charter payments.
“While a number of dry bulk companies in our coverage universe have exposure to Korea Line, we suggest the biggest concern is Eagle Bulk Shipping which has 13 ships on charter to the company.”
Natasha Boyden of Cantor Fitzgerald makes sure at least one Greek owner is swiftly reaching for the PR man’s phone number.
“Eagle Bulk's exposure to current KLC accounts receivable is modest, and indeed the vast majority of our charters with KLC are fixed at close to current market rates.”
Eagle Bulk’s PR man doesn’t take long to swoop.
“Excel Maritime Carriers Ltd announced today that the company does not have any business relations or financial exposure to Korea Line.”
And another Greek is very keen to show its finger prints are not on this train wreck.
“The fact the market is on its arse and so depressed could work in KLC’s favour because it will now be able to go to the owners with an even better bargaining tool. People have seen this coming. It isn’t a shock. It has been a car crash in slow motion.”
One market observer reckons that once KLC straps itself in nice and tight it could still safe its ass from the wreckage.
“It is quite clear that today’s bankruptcy will send shockwaves through the industry, and remind the market that the dry bulk shipping crisis declared over almost two years ago, perhaps was a premature conclusion to make.”
With panic setting in after KLC’s move, Martin Sommerseth Jaer of Arctic Securities is in no mood to dampen the flames.
“We have exposure to two of Korea Line’s LNG carriers, so no dry bulk, on long-term charter contracts, with excellent counterparty risk.”
DnB NOR spokesman Per Sagbakke is also keen to distance the bank from the unfolding drama.
"We do not see any signs of an improving market and expect 2011 to be yet another challenging year.”
Stolt-Nielsen reckons the winter of tanker discontent could go on and on as it unveils a 2010 profit hike.
“When a large company restructures, it is necessary to inject new blood, new skills and new competencies. Change is a positive contributor to success.”
Khamis Juma Buamim, chairman of Dubai Drydocks World, as CEO Geoff Taylor steps aside leaving the company to “change” things.
“I guess it is only the best ones that have the right to survive.”
Morten Tronstad, managing partner of new Norwegian shipbroker Brigde Maritime, expresses the LPG market player’s Darwinian philosophy.
“Shipping is not that big of a business...Well, it’s really a cyclical business and a tough business, and the truth is there are too many listed companies. There’s virtually no IPO market and people who got in on that basis have to be reconsidering. I hope we see more of these guys fall away - it’s overbanked.”
One veteran banker is hoping to see less analysts and owners around as Oppenheimer cuts its shipping coverage.
“Look, any time a ship touches a rig or platform it is a serious matter but I wouldn’t say this is necessarily a permanent black mark because we really don’t know the circumstances yet.”
An offshore shipbroker as a naughty Rem PSV collided with a ConocoPhillips installation in the North Sea.
“If you spend as much money as we do on ships, you have to be optimistic.”
Vroon commercial director Herman Marks as the Dutch moneybags pens an order for two bitumen tankers at Hyundai Mipo.
“We shall never take a ransom from Korean ships, we shall burn them and kill their crew. We shall redouble our efforts. Korea has put itself in trouble by killing my colleagues.”
An alleged Somali pirate appears willing to set aside a lucrative long-term business plan in search of revenge against an entire country over the storming by South Korea’s navy of the hijacked Samho Jewelry.
"While in Germany currently there is a theoretical discussion as to whether and how the merchant vessels of German shipping companies could be more effectively secured against the rising number of pirate attacks, twelve men aboard the MV “Beluga Nomination” are in severe distress and danger since Saturday.”
Beluga Shipping can hardly contain its irritation after one of its ships is eventually hijacked by Somali pirates despite its crew putting in a brave two-and-a-half-day shift in a citadel.
“We are lacking an explanation, why within two and a half days during which the crew had hidden from the pirates in the citadel, no external help could be offered. Had possibly no serviceable units been at disposal?”
Niels Stolberg, Beluga Shipping's president and chief executive, is pulling punches only with German and international naval authorities over the hijacking fiasco.
“We have members who have a real intimacy with the operation of their vessels. I am not saying it doesn’t happen with larger ships but our members are closely in touch with everything that happens.”
Charles Hume, CEO of the Shipowners’ Club, reveals that some shipowners have a real fetish for work.
