Golden Ocean Refinance to Survive Another Tough Year
Dry bulk shipping firm Golden Ocean plans to raise $200 million in fresh equity, backed by its main owner billionaire John Fredriksen, as it continues to face weak markets for its vessels. The share issue is a condition for refinancing total debt obligations of around $1 billion. "We are in a very serious situation. These market conditions are not sustainable for anybody but we believe market will repair faster than any analysts expects. Under present market circumstances, yards are close to break even, and retail values are much lower. "The order book was at 126 million dead weight tonnes (dwt) at the start of the year. I think there will be massive delays. I think it is a fair assumption that the order book now is 90 million dwt and it will be spread out more in time.
Tianjin Explosion Highlights Growth of Accumulation Risks
The recent catastrophe at the port of Tianjin in China resulted in the loss of at least 100 lives and many more people are still missing. It is far too early to speculate on the cause, but the explosions left extensive physical damage as well as the appalling loss of life. Accumulation risks – when a single event causes an exceptionally large group of related losses – such as this, are continuing to grow, according to the International Union of Marine Insurance (IUMI). IUMI President, Dieter Berg said, “This extremely sad and regrettable incident demonstrates the persistent growth of accumulation of values in port and storage areas, particularly in highly industrialized regions.
