Commodities Shipping Firms Struggle to Ride Out Worst Downturn
Shipping companies transporting coal, and iron ore and other commodities are urgently seeking ways to conserve cash and withstand the worst market downturn on record as too many ships chase shrinking business. A shortage of financing - estimated at $30 billion and caused in part by banks cutting lending to sectors such as shipping - has also hurt companies, sending some to the wall. "The overall prospects for the dry bulk market are fairly dark - it seems that there is little faith in the market for a recovery. The market mood deteriorates by the day, despite the recent improvement of the Baltic Index," said Basil Karatzas, head of consultancy and brokerage Karatzas Marine Advisors & Co.
Fleet Privatizations Expected Soon For Lithuanian Companies
Following are financial details of a planned fleet privatization in Lithuania. JSC Klaipeda Transport Fleet (KTF) is one of the largest Lithuanian shipping companies, whose principal activities are transportation of refrigerated cargo by sea and lease of sea transport vessels. The authorized capital of the company as of December 31, 2001 amounted to about $38.3 million. KTF owns and operates 16 small- and medium-sized cargo reefers. The main cargo handled by the company includes frozen fish, meat, chicken, butter, fruits and vegetables. The capacity of KTF's vessels is from 85,000 to 470,000 cu. ft., the average capacity - 189,000 cu. ft. The total capacity of the fleet is 85,664 cu. m. According to this class of vessels, the company's fleet is the fourth largest fleet in the world.
Lithuanian Shipping Privatization to Proceed
After a number of starts and stops, it appears that the new year will bring in fresh opportunities for shipping companies to expand fleets with Lithuanian fleet acquisitions. Both JSC Klaipeda Transport Fleet (KTF) and JSC Lithuanian Shipping Company are set to hit the theoretical auction block. Following are key details of both auctions. KTF is one of the largest Lithuanian shipping companies, whose principal activities are transportation of refrigerated cargo by sea and lease of sea transport vessels. The state holds and offers 105,800,225 (80.89 percent) shares in the company at the starting price of 48,668 thous.LTL (1 EUR=3.4528 LTL). KTF owns and operates 16 medium and small-sized cargo reefers, with a total fleet capacity of 85,664 cu.
