The most recent price decrease action started by Gearbulk is the renegotiation of charter prices with Japanese shipowners that have their vessels on long-term charters to the business. As a commercial tonnage company, Gearbulk requires in all times to run an affordable fleet stabilized with freight dedications; a variety of the charter agreements made in earlier years are based upon newbuilding costs and also prices which are no more lasting moving forward.
“The unforeseen and unfortunate pandemic crisis adds further strain on an already difficult international business environment, and everyone needs to adjust their expectations and adapt to this new reality. It is ‘adapt quickly or die slowly’,” claims Chairman Kristian Jebsen.
“The recent negative development comes on top of a grim dry cargo shipping market that has struggled with unsustainably low freight rates for several years. The business of Gearbulk, like most other international shipping companies, is also negatively affected by this situation. Although the challenges are caused by events beyond our control and influence, we continue to identify and impose any measure within our power to fight the challenges, with the view to protect the business and safeguard the future interests of our employees, business partners and other stakeholders,” Jebsen claims.
Representation Image– Credits: Marijn van Hoorn/ YouTube
The business has more than the last couple of years applied reliable counter-measures via a considerable price decrease program, a far-flung business restructuring, a financial institution financial debt rescheduling along with a sale and also lease-back program for a number of vessels in the Gearbulk fleet.
In enhancement to such price financial savings and also proceeded sponsorship from its proprietors, the K. Jebsen family members and also Mitsui O.S.K. Lines (MOL), Gearbulk has actually taken the lead in sector debt consolidation by creating the globe’s biggest swimming pool of open hatch service providers. The G2 Ocean swimming pool was created with Grieg Star Shipping for the advertising and also procedure of both business’ mixed fleets. This effort has actually been really effective and also supplies the consumers with higher adaptability, integrity and also affordable products prices via the mixed track record of Gearbulk and also Grieg Star, the skilled and also specialist G2 Ocean company and also the globe’s biggest fleet of open hatch vessels.
“I think we have to realize that the current challenging climate, abound with uncertainties and unpredictability, will continue for the foreseeable future. Nobody is immune to the negative effects of this disruption, and everyone exposed to international trade will have to review their business model and the financial exposure from deals made in earlier years,” claims Jebsen.
“We trust our Japanese partners will support this measure and adapt to this new reality, as other stakeholders in Gearbulk are doing,” Jebsen claims.
Gearbulk is a long-term, globe leading gamer outdoors hatch mass delivery sector, managing a consolidated fleet of around 70 open hatch, various other specialized and also traditional vessels. The fleet is readily run by the G2 Ocean swimming pool, where Gearbulk is the bulk proprietor.
Reference: gearbulk.com
