The NYSE Euronext-quoted parent of Belgianbulker operator Bocimar believes the capesize and panamax segments will beparticularly susceptible to sudden shifts in freight rates caused by changingweather patterns, port congestion and erratic FFA markets over the next twoyears.

Promising trends

In CMB’s fourth-quarter earnings report itacknowledged the scene looks far less grim than in years past, however, due to emergingtrends that will help the space achieve “a more sustainable balance” betweensupply and demand like the sharp reduction in newbuilding deliveries.

“On the demand side there are also numerous positiveindicators, such as the renewed growth in global steel demand as well as anincrease in demand for steaming coal,” the Brussels-based bulker owner continuedin the market commentary section of the filing.

CMB stressed the importance of the increased availability ofcargo, a trend it attributed to the activation of several iron ore projectsthat had been downsized or delayed but are now expected to contribute anadditional 180 million tons of cargo to the market over the course of 2014.

Earnings

The commentary came as Bocimar’s fleet of capesize, panamax,handymax and handysize bulkers reported earnings averages of around $27,023,$18,031, $14,328 and $8,956 per day, respectively, in the fourth quarter oflast year.

By comparison, these same sub-segments turned in dailyaverages of  $23,415, $10,001, $6,953 and $7,129,respectively, in the comparable period 12 months prior, according to documentsfiled with securities regulators.

CMB carded a gain of $12.7m fourth quarter while itsconsolidated full-year result fell to $49.4m from $134m year-on-year. Thecompany said Bocimar’s annual contribution to the group’s bottom line droppedto $2.9m from $53.2m but did not explain why.

Sale-and-purchase

In the company’s earnings report it also shed light on arecent capesize order, the addition of two handysize newbuildingsto itsbacklog anda new alliance with an affiliate of Cobelfret that marks its return tothe chemical tanker segment.

CMB also confirmed that it offloaded the 20,500-dwtbulker 20,500-dwt Rio Negro(built 1999) in the fourth, which resulted in a capital loss of nearly $1m. The ship wasone of four it acquired from managing director Marc Saverys in March 2012.