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Globus Maritime: Follow the charter rates

Athens: While the supply/demand balance in the dry bulk trades has improved the sector has not yet recovered, which will bring more upside for asset values, argues a leading Greek shipowner in today’s Maritime CEO interview.
Georgios Karageorgiou holds many titles at Globus Maritime – president, ceo and cfo. His curriculum vitae shows he knows all about shipping cycles having worked for Stelmar Shipping from 1992 to 2004. In 2006 he was one of the original founders of Globus Maritime, which listed on the Nasdaq three years ago.
The company currently owns and operates seven modern dry bulk carriers, consisting of one kamsarmax, two panamaxes, and four supramax vessels totalling around 453,000 dwt.
On the markets, Karageorgiou notes that asset values tend to follow charter rates, and rates account for the underlying fundamentals of the industry.
“While we’re pleased to see the dry bulk industry fundamentals improving, in particular, the supply/demand balance,” he says, “we’re not yet at a point where the industry has recovered. So there remains upside for asset values, especially if you consider the ten-year averages of these ships in comparison to today.”
There are no plans to enter new sectors beyond dry bulk at Globus, but Karageorgiou says his firm is always on the look out for more tonnage.
“We are always open to looking at acquisitions that we believe are accretive,” he says, adding, “but it has to be at the right price, timing and specification.”
Rates will continue to improve from where they stand today, Karageorgiou thinks.
“The period market is already higher than spot rates as well as last year’s period levels which is always a good sign,” he notes. Time charter equivalent year-to-date averages are at $16,200 per day for capes, $10,000 per day for panamaxes and about $11,500 per day for supramaxes, he observes, all of which are higher than last year.
“We expect improved conditions going forward,” he concludes. [23/04/14]


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