This page has been archived and commenting is disabled.
Bulk Shipping Bankruptices Begin As Baltic Dry Collapse Continues
With one of the world’s leading dry bulk shipping companies, Copenhagen-based D/S Norden, having made huge losses for the last 2 years and expected to report dramatic losses in 2014 also, it is hardly surprising that the smaller bulk shipping firms are struggling as The Baltic Dry Index collapses ever closer to record all-time lows. As Reuters reports, privately-owned shipping company Copenship has filed for bankruptcy in Copenhagen after losses in the dry bulk market, with the CEO exclaiming, "we have reached a point where there is not more to do." We suspect, given the crash in shipping fees, that this is the first of many...
On Thursday the index stood at 564, close to the historic low level of 554 set in July 1986.

Privately-owned shipping company Copenship has filed for bankruptcy in Copenhagen after losses in the dry bulk market, its Chief Executive Michael Fenger told Reuters.
Copenship had been operating over 50 chartered small-sized dry-bulk vessels carrying goods such as grain, iron ore and timber.
“We have done what we could to raise the funds to save the company, but we have reached a point where there is not more to do,” Michael Fenger wrote in a text message to Reuters on Wednesday.
The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell to its lowest level in nearly three decades on Tuesday, hurt by weaker rates across all four vessel segments.
...
“First of all, we have found ourselves in an extremely bad dry cargo market. Secondly, there are several counterparties that have caused us losses, and then thirdly there are different insurance cases that could hit us,” Fenger wrote.
Insolvency administrator Per Astrup Madsen from Copenhagen law firm Lett said the vessels will be handed back to owners.
“Copenship expected to turn around the business in 2014 but the dry bulk freight rates continued the falling trend,” Astrup Madsen said.
One of the world’s leading dry bulk shipping companies, Copenhagen-based D/S Norden, posted a net loss of $326 million for 2012 and 2013 combined, and said in December it expects a full-year 2014 EBITDA loss of between $290 million and $230 million.
* * *
Shipping analyst Peter Sand at shipping organisation Bimco said 2015 looks set to be dull on the demand side, whereas the supply side is likely to provide the same amount of new capacity as in 2014. “Such a development will not improve the fundamental market balance,” he wrote in a note.
- 24019 reads
- Printer-friendly version
- Send to friend
- advertisements -


Who needs a real economy with real trade, when you can have a fake central bank economy which keeps everyone drinking the Coolaid?
I blame Barry!
300 points up.....easy I'm thinking.
Insert theme music here.....don't shoot the messinger. Sing along if you know the words.
https://www.youtube.com/watch?v=StTqXEQ2l-Y
Cone On Tylers.....Let's focus on some REAL NEWS! Bruce Jenner will soon be a woman......that's the kind of brreaking headlines the "folks" want to hear. Who gives a flying fuck about the BDI when Bruce is growing breasts and his family is confused. Carry on.....All of this Financial Talk is making my head spin...
what are you saying!! is he going to be decatheleted, oh my!
Bruce Jenner has delegated all of his market day trading authority over to Mr. Hat.
"Privately-owned shipping company Copenship has filed for bankruptcy "
1. Abandon ship!
2. Deploy the Golden Parachutes
Did he say if he was going to cut off his dick yet??
Is it too conspiratorial to say that the dry goods price regime is also manipulated?
It's only manipulation if it goes up. If it goes down, it's evil market forces that require a bailout and more government oversight.
Maybe 400 pts as productivity dropped 1.8% in Q4 which HAS to mean more QE...no?
The whipsawing of oil is a preview of the whipsawing most things will experience as the structure of our current economy is shredded. More QE = bigger whipsaws = no stability
"Bear Stearns is fine, and DryShippers is even finer!"
Look at the incredible spin/propaganda already being uttered by the MSMFinancialPresstitutes:
2/05/2015 @ 4:53AM
"Why You Shouldn't Worry About The Baltic Dry Index Hitting A 29 Year Low"
By: Tim Whorestall
http://www.forbes.com/sites/timworstall/2015/02/05/why-you-shouldnt-worr...
Media is supported by advertisers. We are relying on salesmen to tell us the truth. Salesmen are seldom truthful unless there are consequences. What are the consequences to their lies? None, so we KNOW they are lying. If they had any credibility they would not be selling what they are selling. And they are selling, all day, everyday.
Are you buying?
I'm not.
And they will NEVER "see IT coming" because it is not in their interest to do so.
Tim Whores-it-all. Enough said.
Forbes etal refuse to go futher with supply and demand unless it suits their adgenda The real supply and demand is not the cargo or the supply of bottoms. The real suppy problem is cheap money looking for a place to go and a lot went into commodities and ship building and production capacityand inflating EMs--a whole lot of it. So now we have a complete glut of bottoms and a complete glut of cargos and over capacity to use them and no customers-- oh ---you mean its channel stuffed??? fucking a right-- Get a clue Tim Whorestall--Its going to take a decade to clear it out and in the mean time all the margin calls and all the debt restructering and all the collateral rehypothifacation and all illiquidity and all the trade wars and all the currency wars are moving right along---Believe me Tim it ain't your daddy's BDI--
Looks like your having trouble typing here too, my guess? But theres a word here I never seen before, call me a nuub but ahh what the h3ll is : rehypothifacation ? And no I'm not looking it up...
Matrix....must....hold....
now here's some stats the govt can't spin into a lie. too bad only a small number of people in the world even know what the baltic dry is, much less follow it.
this guy isnt even trying to reassure "the markets". afterall, when it gets serious, you have to lie. if he ever enters the US or Germany, he will be arrested for treason.
If they can't spin it, they downplay it or outright ignore it.
You guys! Just like in '08, they index fell not because of a slow down in global trade, but in an oversupply of ships. Trust me...
The dumb bastards should have shorted their own futures, purchased a discounted CDS bundle, hedged that off with a Interest Rate Swap stomped down 60 basis points and rounded it out with a Reverse Split Stock Buyback with ECB/IMF loans.
Where the hell did these guys go to Business School, Austria or something?
Sheesh, you can't help people who won't even try to help themselves. Someone needs to tell them that shipping dry bulk has nothing to do with the Dry Bulk Shipping Industry.
Are you available for business consulting?
Seriously! How can you expect to run a business unless you financialize every single aspect of it?
Then when the cash rolls in you can buy more financialized stuff that has absolutely no relationship to your business!
Or cash out the equity and buy cororate lease Lambos for all the executives at the very least.
Cause everyone knows that looking good is most of it.
It was privately held and didn't own any of the vessels. They very well could have executed your plan a while back selling their vessels to some sucker and were just waiting for a good excuse to put the final nail in the coffin.
The problem is not Obummer. He's a nice guy, like Jimmy Carter. But their kind are helpless against the oligarchs and global companies. Sovereignty is dead. Milo Minderbender will rule the world. Mindless growth is not the answer.
So if it wasn't for the oligarchs and global companies Obama would be a good president?
I'm not sure that's what you meant to say.
That's what I meant to say. Redistribution of wealth is a good idea. Unfortunately, only revolution can solve the problem, not nice guys.
Redistribution of wealth from the Elite class to the hopeless poor would be a good policy.
Redistribution of wealth from the struggling middle class to the Elite is what we are actually doing, the hopeless poor are still hopelessly poor.
Steve LIESman: "This just doesn't make sense, the fundamentals are strong"
I bet he says the same thing when he steps on the scale and it blips back "250"
Euthanize Liesman
Remember what I said that QE and Zirp kill world trade BY DESIGN?
Yes, it does, yes it does,.
Prediction fulfilled.
Sorry, over indebtedness did that, all ZIRP and QE are, are the symptoms of vast debts that can not be repaid. QE is not a cause, it's just a failed alleged 'policy' tool.
Got serious hard-arm heroin problems? Great, just go back-packing in Burma's highlands for three months.
That was basically Ben Bernanke's recommendation, for a global reserve currency smacked-out on hard-arm drugs in 2007-2008.
Allan Greenspan had simply said, "up the dosage, we're fine! Debt makes for growth!"
Lying cunt.
Capital itself has been stranded.
I agree...too much debt. "Default is near."
Oil at a billion barrels in storage. "Once the deep freeze breaks...
Yes, too much debt, too much cash in corporations, too much malinvestment, too little CAPEX investment, too much Decapitalization in the USA, too much loss of industry in the USA... and too much spin and BS Stats about the Economy... too much welfare to cover-up the feedback mechanism that says people don't have good full time jobs anymore.
USA Gets Sick... the world economy slows down.
US Middle Class Squeezed out of good Jobs and lost their wealth... the world economy slows down.
Did you also predict that the sky is blue? Water wet?
On 20 May 2008, the index reached its record high level since its introduction in 1985, reaching 11,793 points. Half a year later, on 5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986;[11] though by 4 February 2009 it had recovered a little lost ground, back to 1,316.[12] These low rates moved dangerously close to the combined operating costs of vessels, fuel, and crews.[13][14]
Interesting and we are at 564!!!
I don't understand. Isn't printed currency considered "dry freight"? So how can the BDI be collapsing?
Video killed the radio store.
Electronic printing press killed the dry shippers.
Good point!
So BDI IS meaningless as we have adapted to a full electronic market place where we buy only crap that can be transported via the internet.
Tell me we aren't living in the Matrix!
Delusion's end game.
If only they could run their ships at a negative speed, like the central banks are doing.
Instead of setting a heading in the local X and Y plane, many are probably destined to take a heading along the negative Z axis.
more like the imaginary plane
unemployment is (5.6i + 1)
BULLISH!!!
The writing is on the wall.... Better fucking prepare for what we call a shit of a collapse. Got Phizzz Bitchezzzzz?
Got lead bitchezzz?
That used to be called a "correction", and they used to happen all the time in the old days (the 1990s).
Remember when this index mattered & was constantly mentioned on cnBS? Good times...good times.
It's only relevant when it is going up. Even the Dow Jones Industrial Average will kick you off if you don't maintain upward trajectory.
Tankers aren't moving because they are moored and full of undeclared inventory oil.
And the shit show rolls on.
Fuck you yellen!!!
Dawn of the Dead.
Bring out your dead, ding
No worries, gas prices are moving up again screwing consumers, so it's all good. Everything is fixed.
In the UK people are loving the fact that petrol is nearly £1 a litre!!! Not realising that this is a 25% decrease, whilst oil is down nearly 60%.
I do believe the corporations are raping us EVEN more.
You do understand that the lion's share of your per-liter petrol price is taxes, right? And that the taxes don't go down a penny even if the price of oil drops to zero?
That's about $6 a gallon vs. $8, right?
Punch it!
Things aren't all bad.....especially for the elite scumbags
Russia Reducing Shipping Port Facilities To Make Room For More Yachts
BP Profit Rise Due To It’s Ownership In Russia’s Rosneft
IBM To Manage Accounting Services For Multinational Russian Businesses
extremely bullish
annnnnnd, futures are up, oil is up, nothing is wrong, these are not the stawks you're looking for, move along!
Wake me up when it's over...
It was over years ago. These are just the typical convulsions you see dead body go through after a tramatic death.
Harpex is well over 2yr average ( below 5 yr). Most likely due to crude shipments running hard to China and India. Those countries are loading up while the price is low.
2yr
http://www.harperpetersen.com/harpex/harpexVP.do
5yr
http://www.harperpetersen.com/harpex/harpexRH.do?timePeriod=Years5&&data...
HARPEX tracks container ship rates, and reflects movement f manufactured goods. Containerships are moving cargo at significantly reduced drafts making them less profitable. The HARPEX is going up because more ships are going to slay up or scrap, thus reducing capacity. Always make sure to check the 6500 and 8500 TEU boxes to get a better feel for the market.
"we have reached a point where there is not more to do."
Jus t follow the lead of the central banks and pay your customers to let you haul their goods
There, fixed it.
BTFD muppets !
Buy a cargo ship. Cheap!
http://www.maritimesales.com/Ships%20for%20Sale.htm
http://www.hellasshipsales.com/ships-for-sale.php?id=54
http://www.boatdealers.ca/boats-for-sale/commercial/cargo-ship
http://www.eshiptrading.com/list/shipsale.aspx?cls=104
All that fuel that aint bein burned should be bullish for oil prices. Long distilletes !!!
This is a Peter Lynch buy signal.
When bad turns to worse, look to buy the strongest companies in the sector.
News in this sector was bad, now it's worse. Bulk shipping is not going away, it's cyclical just like most industries.
How about the real news in the shipping industry? There are currently 20 vessels anchored off the port of Long Beach due to an impasse between the longshoremen and the vessel operators. The vessel operators have stated that if their contract offer is not accepted that they will lock out the workers shutting doen all US West coast ports. If that happens you can kiss Q1 and Q2 GDP goodbye. How will mfg and retail sales keep up with no product coming in from Asia? How will exports continue with no vessels leaving for Asia?
Tru dat
2015 sure will be interesting, to say the least.
Someone here mentioned how the impasse, and possible striks, will impact retail clothing sales, as winter rolls into spring rolls into summer.
I'll bet the shippers can't wait until the new-and-improved Panama Canal opens.
'Til then, the product has to sit on those ships when ths Lonshoremen bitch, or be re-routed through Mexico, the latter of which happened in '03.
Those ships can always off load in Vancouver.
Bulk shipping hits 30yr low. wont be long now. There's a shit storm a comin.
Batten down the shit hatches, it's going to be a shit hurricane!
if you want to be a millionaire in shipping..... start with 2 million
the only reason to be in the shipping business is to smuggle drugs
or in the case of iran to position/fire nukes off the coast of the ussa....
I think Jackie Onassis family made money through some smuggling... remember a story about cigarettes in South America.
Also I think this is an old issue that I saw after the 2008-2009 Crisis. Gas Tankers & Dry Bulk Shipping crashed. Lots of competition, low demand and important contracts.
The Proof: Gas prices finally feel as both supplies & production in the USA and OPEC have been high since 2009. And Dry Bulk Shippers are struggling.
<~ Over supply of ships.
<~ Under supply of Chienes crap to ship..
Option 3. No Buyers.
This guy hasn't learned what it takes to be a winner yet..
H needs lessons from bankers, car makers and assorted low life corrupt scum on the art of sucking cock on his knee2s in the local CB offices.
Look at that fat faggot bullard, still smiling after all the servicng he got