Thorco Chairman: More Ships and IPO

Posted by Joseph Keefe
Wednesday, June 11, 2014
Thorco Triumph (image: Thorco Shipping)

Thorco sees fleet expanding by 50 pct in coming years. Multi-purpose shipping company aims to list in Copenhagen. Drewry expects industry to pick up in next few years.

Denmark's Thorco Shipping expects to expand its fleet by 50 percent in coming years and plans to list on the Copenhagen stock exchange when industry conditions improve, its chairman said.

"It is the plan to list Thorco Shipping's shares in Copenhagen one day but the shipping market needs to be in better condition," Chairman Thor Stadil told Reuters by telephone on Wednesday.

Thorco Shipping, established 11 years ago and controlled by the Stadil family, is the world's second-biggest transporter of goods bigger than container size such as wind turbines, industrial components for oil rigs and trains. It has a fleet of 105 vessels while Germany's BBC Chartering the biggest company in the sector, has 150 vessels.

The global shipping industry has struggled since the global financial crisis in 2008 with low freight rates as a result of overcapacity in nearly all sectors of the industry. Analysts see demand for multi-purpose shipping picking up in the next few years but industry players say consolidation is needed.

Stadil said Thorco's fleet expansion plan would see it take over vessels that banks want to offload from shipping companies in financial difficulty.

"Many banks are suffering from loans to the shipping industry and they want to get rid of vessels they ... have taken over from clients that have failed," he said.

China's COSCO and Wagenborg of the Netherlands are other players in the multi-purpose, heavy-lifting sector of the industry.

Before the global financial crisis, Thorco was booking earnings of more than $20,000 per day for each ship, Stadil said. Daily freight rates for multi-purpose vessels are currently $9,000-$10,000, and Stadil said $15,000 per day was a normal level.

"Many new ships were ordered in the years ahead of the financial crisis. No one is currently ordering new ships and old ships will leave the market. It will in coming years help to create a better balance between demand and supply," Stadil said.

Thorco took over a fleet of around 40 vessels from Danish shipping company Clipper in September 2013. Small Danish player Combi Lift and BBC Chartering recently announced they would pool some of their vessels to try and boost both companies' earnings.

"A consolidation of the industry is needed," Combi Lift's chief executive, Anders Poulsen, told Reuters by telephone.

Last year was a tough one for the industry but Drewry Research forecasts demand for multi-purpose shipping will grow at an average annual rate of 5 percent over the coming years.

"However, we are only expecting modest growth in 2014 as competition from other shipping sectors will continue to eat away at market share. But we expect the sector's market share to recover through 2015/16," Drewry said in a research note.


By Ole Mikkelsen


Contracts

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

J.F. Lehman Acquires Oldenburg's Heavy Equipment Group

J.F. Lehman & Company (JFLCO) informs it has signed a definitive agreement with Oldenburg Group Incorporated to acquire its Heavy Equipment Group, including both its defense and mining business units.

Legal

Asia’s Biggest Container Shipper Posts Loss

Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn

El Faro Captain Ordered Crew to Abandon Ship before Sinking

The captain of the doomed El Faro cargo ship sounded an alarm for his crew to abandon the vessel shortly before it sank last fall in a hurricane near the Bahamas, killing all 33 onboard, the U.

Foreship Establishes Tallinn Subsidiary

Naval architect and marine engineering company Foreship has created a wholly-owned subsidiary located in Tallinn to strengthen ties with shipowners, shipyards and

Shipbuilding

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Heavy Lifting: Giant Pipe Racks Shipped for New FPSO

From Brazil to China and then back to Brazil, five pipe racks and three modules weighing a total of 1,871.51 metric tons and measuring 24,075 m³ will be transported

Ship Sales

COSCO Delivers PSV and Two Jack-up Rigs

Cosco (Dalian) Shipyard Co., Ltd., a subsidiary of its 51 percent owned Cosco Shipyard Group Co., Ltd., has delivered two jackups to the Foresight Group of companies

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

SCI to Buy Vessels for $134m

India's largest shipping company  Shipping Corporation of India (SCI) has earmarked Rs 900 crore ($134m ) capex for the current financial year even as business

Finance

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Asia’s Biggest Container Shipper Posts Loss

Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn

Hoegh LNG Profits Dip

Norway-based owner and operator of floating LNG import terminals, Höegh LNG  reported a second quarter profit after tax of US$3.5 million, down from $6.3 million in the first quarter 2016.

Mergers & Acquisitions

Asia’s Biggest Container Shipper Posts Loss

Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn

J.F. Lehman Acquires Oldenburg's Heavy Equipment Group

J.F. Lehman & Company (JFLCO) informs it has signed a definitive agreement with Oldenburg Group Incorporated to acquire its Heavy Equipment Group, including both its defense and mining business units.

UASC's Dismal Performance

United Arab Shipping Company (UASC), which is close to merging with Hapag-Lloyd, revealed enormous deficits and a massive debt in its key financial figures, says Alphaliner.

 
 
Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1066 sec (9 req/sec)