Danish Bulker Owner Copenship Files for Bankruptcy

By Ole Mikkelsen

COPENHAGEN, Feb 4 (Reuters) – Privately-owned transport firm Copenship has filed for chapter in Copenhagen after losses within the dry bulk market, its Chief Executive Michael Fenger informed Reuters.

Copenship had been working over 50 chartered small-sized dry-bulk vessels carrying items akin to 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 textual content message to Reuters on Wednesday.

The Baltic Exchange’s predominant sea freight index, which tracks charges for ships carrying dry bulk commodities, fell to its lowest degree in practically three a long time on Tuesday, harm by weaker charges throughout all 4 vessel segments.

On Wednesday the index stood at 569, near the historic low degree of 554 set in July 1986.

“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 legislation agency Lett mentioned the vessels shall be handed again to homeowners.

“Copenship expected to turn around the business in 2014 but the dry bulk freight rates continued the falling trend,” Astrup Madsen mentioned.

One of the world’s main dry bulk transport corporations, Copenhagen-based D/S Norden, posted a web lack of $326 million for 2012 and 2013 mixed, and mentioned in December it expects a full-year 2014 EBITDA lack of between $290 million and $230 million.

Shipping analyst Peter Sand at transport organisation Bimco mentioned 2015 appears set to be uninteresting on the demand aspect, whereas the availability aspect is probably going to offer the identical quantity of recent capability as in 2014. “Such a development will not improve the fundamental market balance,” he wrote in a be aware. (Editing by David Holmes)