Belgium's CMB Claws Back Lost Ground in Q4 2013
CMB, Compagnie Maritime Belge, is a maritime group with its registered offices in Antwerp. Next to holding activities, the Group's main participating interests are active in the transport of dry cargo (Bocimar) and aviation (ASL Aviation). The group notes in its fourth quarter 2013 financial result that its executive committee has discussed the results recorded for the fourth quarter and the preliminary results for the full year 2013. The consolidated result for 2013 is estimated to be US$49.400.000 (2012: US$ 133.954.000).
Comments
Bocimar’s average earnings for the fourth quarter and the full year 2013 were as follows:
After years of newbuilding deliveries far exceeding the growth in world seaborne trade, a discernable fundamental trend change has emerged which will bring supply and demand back to a more sustainable balance over the next two years.
In most segments of the dry bulk market - allowing for normal slippage, cancellations and deletions – the net increase is expected to hover around 5% which is a sharp reduction compared to the last five years.
On the demand side there are also numerous positive indicators, such as the renewed growth in global steel demand as well as an increase in demand for steaming coal.
The most important indicator is, without doubt, the increased availability of new cargo which should increase fleet utilisation. A number of new iron ore mining expansion projects which have suffered delays or downsizing, are now being delivered, with the ramp up over 2014 expected to be around 180 million tons, i.e. an increase by more than 10%.
On the other hand, the dry bulk markets will be more volatile than ever. Amongst others, weather factors, congestion and erratic FFA markets will lead to sudden spikes and falls in the freight markets, especially in the Cape and Panamax segments.