Genco Shipping & Trading is set to retire 15 of its 60-strong fleet of vessels and replace them with second-hand ships that are less than five years old, according to CEO John Wobensmith. The move pre-empts a predicted 3%-4% increase in shipping demand for 2018, with tonnage set to rise by 1%-2% off the back of China's continued demand for iron ore from Australia and Brazil. Wobensmith said this year was likely to be a "healthier, stronger freight market than what we saw in 2017". Genco Shipping to Acquire Bulk Carriers to Meet Demand Growth 2018-03-06 14:36:05.822 GMT By Kyunghee Park (Bloomberg) -- Genco Shipping & Trading Ltd. plans to buy the ships in the second-hand market this year to replace 15 older vessels it will sell, Chief Executive Officer John Wobensmith said in an interview in Singapore. * Co. to focus on Capesize and Ultramax businesses * Will look at buying vessels less than five years old * Company expects to raise capital through debt or equity raising This story has been updated to reflect additional details about the deal TL;DR Wobensmith * Co. currently operates 60 vessels * Bulk-shipping demand likely to increase 3%-4% this year: Wobensmith * Supply of tonnage to rise 1%-2%, possibly helping time-charter rates to rise faster than 2017 * China demand for higher grade iron ore to continue this year from Brazil and Australia * India expected to need more coking and thermal coal * NOTE: Feb. 27, Genco Shipping Reports Unexpected Fourth- Quarter Profit
Genco Shipping & Trading is set to retire 15 of its 60-strong fleet of vessels and replace them with second-hand ships that are less than five years old, according to CEO John Wobensmith. The move pre-empts a predicted 3%-4% increase in shipping demand for 2018, with tonnage set to rise by 1%-2% off the back of China's continued demand for iron ore from Australia and Brazil. Wobensmith said this year was likely to be a "healthier, stronger freight market than what we saw in 2017". Genco Shipping to Acquire Bulk Carriers to Meet Demand Growth 2018-03-06 14:36:05.822 GMT By Kyunghee Park (Bloomberg) -- Genco Shipping & Trading Ltd. plans to buy the ships in the second-hand market this year to replace 15 older vessels it will sell, Chief Executive Officer John Wobensmith said in an interview in Singapore. * Co. to focus on Capesize and Ultramax businesses * Will look at buying vessels less than five years old * “2018 to be a healthier, stronger freight market than what we saw in 2017”: Wobensmith * Co. currently operates 60 vessels * Bulk-shipping demand likely to increase 3%-4% this year: Wobensmith * Supply of tonnage to rise 1%-2%, possibly helping time-charter rates to rise faster than 2017 * China demand for higher grade iron ore to continue this year from Brazil and Australia * India expected to need more coking and thermal coal * NOTE: Feb. 27, Genco Shipping Reports Unexpected Fourth- Quarter Profit