Norden doubts the upturn will last
SHIPPING: Norden will step carefully before expanding its fleet with new, chartered ships once again. The shipping company estimates that there are still too great risks associated with the business and in the global economy, to believe in the general upturn seen in the market at the moment.
We are seeing more positive signals from China. These indicate that the economical stimulation plan, which the country has introduced, has begun to work. Great stocks of iron and steel is once again being build up, and both car sales and new loans are increasing", said CFO of Norden, Michael Tonnes Jorgensen, on the company's Open Reception Day for financial analytics on Wednesday.
The uncertain economical development in other countries, however, is too comprehensive for the CFO to seem certain that the evident upturn in the dry cargo industry will last.
While Norden has ensured contracts for almost all of the dry cargo fleet for the rest of the year, there are still many unoccupied days for the tankers, and in this sector, the rates are, according to Tonnes Jorgensen, still under such pressure that they do not even cover the daily running expenses.
Source: maritimedanmark.dk