We take a look at what was said in the market in the past week.
“Nobody knows the real situation. They approached clients looking for reductions, looking for them to take a haircut. Because they didn’t get the response they wanted, maybe this is a way to get where they wanted to be. Get the court to negotiate for them, basically dictate terms to the owners. Take a haircut or walk away with a claim against KLC - join the queue.”
Paragon boss Michael Bodouroglou after KLC gave plenty of clients a short-back-and-sides with its bankruptcy filing.
(Paragon ‘relatively lucky’ in dealings with KLC.)
“It’s an investor base that is not used to dealing with shipping day-to-day as we do. It takes very little for them to get spooked and develop a negative sentiment toward shipping.”
Pavlos Kanellopoulos, CFO of Excel Maritime which canned a proposed bond offering in the wake of KLC’s bankruptcy filing.
(Excel holds eye on high-yield market.)
“Based on our market views, earnings expectations and historic returns, we expect 10% downside for tanker values.”
A quarterly report from Norwegian broker Platou gives tanker owners the spooks way before Halloween.
(Platou pinpoints price falls.)
“They are drawing cash daily in a terrible market.”
An analyst reckons Frontline’s decision to cut and run from OSG is a sign of how bad things are for tankers.
“It’s quite likely that the freight market outlook will encourage further delays in deliveries. It will not surprise us if as many as a quarter of this year’s anticipated deliveries don’t turn up by December this year.”
Shipbroker Braemar Seascope reckons the going could be slow for capesize newbuildings in 2011.
“I think in the short term we are going to see turmoil. In the short term it is going to be negative but in the long term it could be very positive because governments in the region will have to focus much more on economic growth to satisfy the needs of their people.”
Ahmed Al Falahi, chief executive of Dubai-based tanker owner Gulf Energy Maritime, tries to spy positives in the current conflict in Egypt.
(Will the winds of change disrupt shipping?)
“Make no mistake, it is definitely raising the temperature in the Arab world.”
As it if wasn’t hot enough! A Middle East-based banking source’s view on the Egyptian crisis.
(Will the winds of change disrupt shipping?)
“They are back to pre-internet times, using telephones and fax machines. Things are getting done, although it takes a bit longer now.”
There are certainly plenty of smoke signals coming out of Egypt’s cities as communication breaks down.
(Will the winds of change disrupt shipping?)
“We don’t have any obligations. We don’t have any ships on order. We don’t have any banks breathing down our necks, so we feel we’re blessed. We have time to play the game by our rules.”
Nikos Pateras, head of Pacific & Atlantic, as the Greek makes a stress-free return to shipowning with a three-vessel splurge.
(Pateras makes a relaxed return.)
“Ships being delivered today are basically 20 year-old technology, by and large.”
DNV president Tor Svensen reckons the ‘new’ in ‘newbuilding’ is overstating things a little.
“It might be the case that the market and pride pushes. Some are already talking about producing the Toyota Prius of shipping.”
The DNV boss reckons the industry needs to pop the hood and have a look under its bonnet.
“If the Japanese are doing it, then the Koreans better be doing it. And then if the Koreans are doing it, then the Chinese yards will do it - at least the more progressive Chinese yards.”
Svensen reckons shipbuilding these days is more about keeping up the with Parks, the Lees and the Satos.
"Assumingly one crew member has been shot on board on Wednesday by the pirates after the Seychelles Coast Guard had started an attempt to free the vessel and obviously shot a pirate during this operation.”
Beluga Shipping confirms a TradeWinds report that one crew member onboard its hijacked Beluga Nomination has been killed.
“We are firmly convinced that the tragic death of one of our colleagues could have been prevented had there been a more professional, coordinated, aligned procedure by the action forces on site.”
The German owner has been continually scathing of international naval forces of the handling of the hijacking and a rescue bid.
(Beluga blasts ‘failed’ navies.)
“According to our knowledge, the patrol boat of the Seychelles Coast Guard had opened fire and started shooting at our vessel last week, Wednesday...This operation had not been authorised by Beluga Shipping, nor has the shipowner been asked at all. They [the Seychelles Coast Guard] have acted fully on their own initiative and account without asking us for approval or feedback.”
The owner reckons Seychellois authorities have a lot to answer for...but TradeWinds didn’t find the Coast Guard in any mood for answers.
(Seychelles accused over role in execution.)
“Only one press release on behalf of the NATO, submitted on the 28 of January 2011, entailed the information – this release has not been addressed to Beluga Shipping yet was only leaked to the Beluga headquarters.”
Much to Beluga’s annoyance, TradeWinds got to the owner with the news that two crew had miraculously escaped, just in advance of NATO.
(Beluga blasts ‘failed’ navies.)
“In these morally muddied waters, there is no universally recognised principle of morality, no clearly identified public policy, no substantially incontestable public interest, which could lead the courts, as matters stand at present, to state that the payment of ransom should be regarded as a matter which stands beyond the pale, without any legitimate recognition.”
A UK appeals court ruling against a Swiss trader over the hijacking of an MISC tanker two years ago.
“This has elements of a distressed sale but I think everyone realises this is not a fire sale now.”
A Fearnleys Offshore source as beleaguered owner Marine Subsea continues the hunt for a buyer of two specialised ships which are part of a forced sale.
(Well-intervention pair up for grabs.)
"There might be pictures and whatnot on some of these sites. We do have to remember that we are a family venue and that there might be some parents who might be offended by their children seeing such pictures."
Deborah Marshall, spokesperson for Canadian owner BC Ferries which has barred ‘offensive’ sex education and abortion info websites from its ships.
(No sex please, we’re Canadian.)
"This is information that every human being needs. I'd love to meet with the ferry corporation management and talk about sex education because clearly they don't understand what it is."
Greg Smith, executive director of Options for Sexual Health, reckons BC heads might need a bit of a sorting out.
