Dry-Bulk Shipping: Hitting the Bottom
Dry bulk shipping companies being hit the hardest on account of the deteriorating business climate are likely to be swept by a new wave of bankruptcies, reports Nikkei. The global commodities bust has rocked the dry-bulk shipping industry, with a wave of bankruptcies washing across the sector and major players forced to restructure, divest or scrap assets. Many in the industry had hoped it would start to recover this year. But there is not much sign of that—and it looks as if more pain is still in store for shipowners. On Jan. 5, the Shanghai International Shipping Institute issued a striking report after polling about 50 of the nation's largest bulk shippers. The survey concluded that 60% of the firms it polled were struggling with long-term losses and about 40% faced liquidity problems.
Another Japanese Bulk Shipper Seeks Bankruptcy Protection
Daiichi Chuo liabilities total $1.5 bln. Second dry bulker to seek bankruptcy protection this month. Japanese bulk carrier Daiichi Chuo Kisen Kaisha said on Tuesday it had filed for protection from creditors - the second shipper to do so this month - with analysts predicting more failures if the market for dry freight continues to slump. The shipping industry has been hit hard by the global commodities meltdown with the dry freight market near six-year lows and rates for large ships carrying iron ore and coal barely covering operating costs this year. Daiichi Chuo said it had been unable to make ends meet on ships it had chartered or finance ships it had ordered…
Global Maritime Files for Bankruptcy
Dry-bulk shipper Global Maritime Investments Cyprus Ltd. filed for chapter 11 bankruptcy protection New York Tuesday in order to liquidate its business due to a continued industry downturn, reports WSJ. The bankruptcy filing of the international shipping company came in New York, where Global Maritime has faced lawsuits. Most of the estimated $169 million in debt the company carries is unsecured, court papers say. The amount includes losses from 2014 worth $47.8 million and about $67.6 million from 2015 fiscal year. The company attributed the decision to seek bankruptcy protection as it was unable to pay back its debt since market overcapacity pushed down charter rates hampering the carrier’s ability to secure enough profit.
