Mr. Ion Varouxakis, President and CEO of FreeSeas, stated, `We are particularly pleased to report strong results for the year ended December 31, 2008, a transformational year for our Company. During 2008 we grew our fleet from five to nine vessels, lowered the average age of our fleet and secured frontloaded charters. We decided not to enter into newbuilding contracts or engage in a chartering policy of spot only coverage or long period charter at unsustainably high rates, opting instead to adopt a balanced chartering strategy.The Company's focus in the smaller and versatile Handysize market provides for distinct competitive advantages over the larger dry bulk segments. Our vessels can transport a wider array of cargo, access a larger number of ports due to their shallow draft and onboard crane equipment, and have historically achieved greater charter rate stability. The worldwide Handysize fleet has been shrinking over the last few months, as scrapping of over-age tonnage has far outweighed newbuilding deliveries. As a result, over the last few weeks Handysize rates have outperformed those of larger vessels. We are optimistic that this trend will continue, which will in turn greatly increase the earning potential of our fleet.
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Sunday, March 29, 2009
FreeSeas Inc. Announces 2008 Fourth Quarter and Year End Financial Results
FreeSeas Inc., a transporter of dry bulk cargoes through the ownership and operation of a fleet of seven Handysize vessels and two Handymax vessels, yesterday announced financial results for its fourth quarter and year ended December 31, 2008.
Piracy latest: two European tankers seized off Somalia
Two European-owned tankers have been hijacked off the Somali coast, prompting an alert for other vessels to watch for a pick-up in pirate activity, AFP writes, quoting the EU's anti-piracy naval mission.
The Maritime Security Centre run by the EU naval force said that the 9,000-tonne Greek-owned, Panamanian-flagged M.V. Nipayia was seized on Wednesday with its crew of 19. A Greek merchant marine ministry spokesman said the chemical tanker's Russian captain and 18 Filipino crew members were in good health and that the boat's owner, Lotus Shipping, had begun negotiations with the pirates.The incident was followed early on Thursday with the capture of the 23,000-tonne Norwegian-owned and Bahamian-registered M.V. Bow-Asir with an unspecified number of crew. Salhus Shipping, which owns the tanker, said in a statement from Norway that the crew numbered 27 members of different nationalities and that they had contacted the company after 16 to 18 pirates came aboard with automatic weapons."We have no reports of any injuries," said company director Per Hansen. "We are doing our utmost to ensure the safety of the crew, and have established communication lines with naval forces, insurance companies,flag state and charterer".
The Maritime Security Centre run by the EU naval force said that the 9,000-tonne Greek-owned, Panamanian-flagged M.V. Nipayia was seized on Wednesday with its crew of 19. A Greek merchant marine ministry spokesman said the chemical tanker's Russian captain and 18 Filipino crew members were in good health and that the boat's owner, Lotus Shipping, had begun negotiations with the pirates.The incident was followed early on Thursday with the capture of the 23,000-tonne Norwegian-owned and Bahamian-registered M.V. Bow-Asir with an unspecified number of crew. Salhus Shipping, which owns the tanker, said in a statement from Norway that the crew numbered 27 members of different nationalities and that they had contacted the company after 16 to 18 pirates came aboard with automatic weapons."We have no reports of any injuries," said company director Per Hansen. "We are doing our utmost to ensure the safety of the crew, and have established communication lines with naval forces, insurance companies,flag state and charterer".
Shanghai to advance as international financial and shipping centre by 2020
State Council of China yesterday gave a green light signal to enhancing the position of Shanghai as the country's major international financial and shipping center by 2020, write China Daily and Xinhua.
"Accelerating Shanghai's development in modern services, manufacturing, finance and shipping would be of great advantage for the Yangtze River Delta and the whole nation at large," the council said at an executive meeting.It urged Shanghai to be developed into a multi-functional financial center by 2020 to keep up with "China's economic influence and the yuan's international position." To achieve the target, Shanghai would be required to open up more financial sectors and improve services.Shanghai can now expect strong growth momentum after the city's industrial output dropped by as much as 12.7% year-on-year in the first two months of the year due to dwindling exports.Shanghai's GDP growth dropped to 9.7% year-on-year in 2008, the first time it fell below 10% since 1992.
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Dry bulk market still point South
The Baltic Dry Index seems unable to cope with the downward pressures currently applied in the dry bulk market, as negotiations between iron ore miners and steel industry players of China and others aren’t yet concluded.
Despite an earlier estimate that this year’s negotiations would be among the quickest of these past few years, miners proved reluctant to concede significantly lower prices (40-50%), mainly because of the BDI’s rally at the beginning of the year. This has now proven to be weighing heavily on the dry bulk market, with more and more cargoes being left out in the dry.The BDI has been steadily plunging for more than 11 sessions, ready to fall for a third straight week. Yesterday, the BDI ended at 1,714 points, down by 26, with falls obvious among all ship types. The Capesizes and the Supramaxes were the two biggest losers, with the Capesize index losing 35 points at 2,134, while the Supramax index shed another 33 points at 1,365. As a result, the average daily time charter rate for a capesize has now dropped at $19,034, when at the peak of this year’s rates it could fetch up to $35,000 on average. Similarly, the Panamax sector has found itself again below the Supramax field, with average daily rates standing at $12,262, against $14,271 for the supramaxes. According to Fearnley’s latest weekly report, for the panamax sector there are no clear signs of any recovery, but it “seems like the market has flattened out and found a bottom”. As for the capesize market, the broker said that “uncertainty prevails and focus on both sides is on covering spot positions.
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Despite an earlier estimate that this year’s negotiations would be among the quickest of these past few years, miners proved reluctant to concede significantly lower prices (40-50%), mainly because of the BDI’s rally at the beginning of the year. This has now proven to be weighing heavily on the dry bulk market, with more and more cargoes being left out in the dry.The BDI has been steadily plunging for more than 11 sessions, ready to fall for a third straight week. Yesterday, the BDI ended at 1,714 points, down by 26, with falls obvious among all ship types. The Capesizes and the Supramaxes were the two biggest losers, with the Capesize index losing 35 points at 2,134, while the Supramax index shed another 33 points at 1,365. As a result, the average daily time charter rate for a capesize has now dropped at $19,034, when at the peak of this year’s rates it could fetch up to $35,000 on average. Similarly, the Panamax sector has found itself again below the Supramax field, with average daily rates standing at $12,262, against $14,271 for the supramaxes. According to Fearnley’s latest weekly report, for the panamax sector there are no clear signs of any recovery, but it “seems like the market has flattened out and found a bottom”. As for the capesize market, the broker said that “uncertainty prevails and focus on both sides is on covering spot positions.
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