Maybulk to Build Five More Ships
Unfazed by the tough market conditions that the shipping industry is faced with, Malaysian Bulk Carriers Bhd (Maybulk) said it will move forward with fleet renewal activities.
Maybulk is building five new ships to expand its fleet size to 27 vessels by 2018, even as plunging charter rates slashed the company’s net profit by 72% to in the year ended Dec 31, 2014.
The expansion will increase the group’s capacity to ship iron ore, fertilizer and coal to 1.5 million deadweight tonnes (dwt) from 1.2 million dwt.
This was because the company feels it is important to remain competitive, even in trying times, said Maybulk chief executive officer Kuok Khoon Kuan.
The global shipping industry is at its lowest point in 30 years due to overcapacity and slower global demand, he pointed out.
Many shipping companies are increasingly running into financial difficulties due to the bleak outlook in the shipping market, but Maybulk remains profitable although at a much lower level Kuan said.
He expects 2015 to be another bleak year for the industry, due to slowing demand in major economies, coupled with continued tonnage overcapacity and the marginal growth in global trade flows.
Kuok said the average time charter equivalent for its dry bulk and tanker fleet, measuring the average daily revenue of a vessel, had dropped to about US$9,400 a day.
