Sun, Aug07, 2011
Bloomberg reported that Anchor Ship Investment Co may more than double its fleet to as many as 50 vessels because of rising imports of coal and iron ore in China and India.
Mr Hajime Tsuji president of Anchor Ship said that "Our customers are asking for more bulk carriers to feed that demand and we are filling it." He added that Anchor Ship will use its second fund of about JPY 200 billion to add to the 24 vessels it currently owns or has on order.
Mr Tsuji said that the company's first fund has posted annual returns of more than 5% since its formation in 2007 as signing more than half of contracts in yen, with the rest in dollars, has helped it hedge against currency fluctuations. A policy of only leasing out vessels on contracts of 10 years has also allowed it avoid a slump in spot market rates.
According to customs data tracked by Bloomberg, Anchor Ship, whose customers include Japanese shipping lines Nippon Yusen KK and Kawasaki Kisen Kaisha Limited, plans to expand its dry bulk fleet as China's construction of bridges, roads and railways drives demand for iron ore, a key steelmaking ingredient. The country, the world's biggest iron ore buyer, increased imports of the commodity 8.1% in the first half of the year to 335 million tonnes.
That increase in demand has failed to prevent the Baltic Dry Index, a benchmark for commodity shipping rates, plunging 36% in the past year, as Chinese shipyards work through a glut of new vessels ordered with government support. Anchor Ship intends to continue relying on longer term deals to guard against market fluctuations.
Mr Tsuji said that "We charter ships for 10 years and we are not considering shortening that period. That way, the company only faces market risk when the contract ends."
Mr Tsuji said that Anchor Ship has 12 vessels in operation, comprising four container vessels, five tankers, a car carrier, one liquefied petroleum gas tanker and a bulk ship. The company's order backlog includes 3 container ships, 2 Capesize dry bulk vessels, 3 Panamax and 4 Handysize.
(sourced Bloomberg)
Bloomberg reported that Anchor Ship Investment Co may more than double its fleet to as many as 50 vessels because of rising imports of coal and iron ore in China and India.
Mr Hajime Tsuji president of Anchor Ship said that "Our customers are asking for more bulk carriers to feed that demand and we are filling it." He added that Anchor Ship will use its second fund of about JPY 200 billion to add to the 24 vessels it currently owns or has on order.
Mr Tsuji said that the company's first fund has posted annual returns of more than 5% since its formation in 2007 as signing more than half of contracts in yen, with the rest in dollars, has helped it hedge against currency fluctuations. A policy of only leasing out vessels on contracts of 10 years has also allowed it avoid a slump in spot market rates.
According to customs data tracked by Bloomberg, Anchor Ship, whose customers include Japanese shipping lines Nippon Yusen KK and Kawasaki Kisen Kaisha Limited, plans to expand its dry bulk fleet as China's construction of bridges, roads and railways drives demand for iron ore, a key steelmaking ingredient. The country, the world's biggest iron ore buyer, increased imports of the commodity 8.1% in the first half of the year to 335 million tonnes.
That increase in demand has failed to prevent the Baltic Dry Index, a benchmark for commodity shipping rates, plunging 36% in the past year, as Chinese shipyards work through a glut of new vessels ordered with government support. Anchor Ship intends to continue relying on longer term deals to guard against market fluctuations.
Mr Tsuji said that "We charter ships for 10 years and we are not considering shortening that period. That way, the company only faces market risk when the contract ends."
Mr Tsuji said that Anchor Ship has 12 vessels in operation, comprising four container vessels, five tankers, a car carrier, one liquefied petroleum gas tanker and a bulk ship. The company's order backlog includes 3 container ships, 2 Capesize dry bulk vessels, 3 Panamax and 4 Handysize.
(sourced Bloomberg)
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