Understanding Our Core Market

the dry bulk Sector

Why we focus on minor bulks

Our Market Share

Source: Pacific Basin, Clarksons

We are the world's largest Handysize owner and operator (with a significant presence also in Handymax) in a highly fragmented market that revolves around the carriage of minor bulks.

Minor bulk commodities are very varied, controlled by a large number of customers and transported via a large number of ports globally. This segment requires highly versatile self-loading and discharging ("geared") ships of "handy" proportions to allow them access to the many ports around the world restricted by shallow water, locks, narrow channels and river bends. By contrast, cargo demand for large bulk carriers comprises only a few commodities controlled by a handful of cargo owners and transported through a much smaller number of ports making their prospects more volatile.

So while we are focused on a very particular ship segment and size, we are diversified geographically and in terms of customers and cargoes. This allows us scope to triangulate our voyages and thus enhance our utilisation and vessel earnings. And while we may not participate in the volatile freight earnings that large bulk carriers can achieve, we are well positioned to achieve our important aim of generating a steadier and more sustainable earnings stream with better protected earnings in the down-cycle.

Our earnings reliability is further enhanced by the fact that global Handysize capacity has experienced only 20% growth in the past 10 years relative to the much larger expansion of the major bulk fleets.

Dry Bulk Market Review 2014
Read about the freight market and demand and supply developments in 2014

Our worldwide network and trading areas

A focused approach - offering benefits of diversification

Focused on segment and size

Diversified geographically, customer-wise and cargo-wise

  • Over 400 customers globally
  • Our largest customer represents only 4%
  • Top 25 customers represent less than 40%

Our Dry Bulk Cargo Volumes in 2014

Our Dry Bulk Cargo Volumes in 2014

Opportunities and challenges

Slower growth in global minor bulks trade
Minor bulks transportation demand will be affected by slower Chinese growth but healthy recovery in the USA
Moderating supply growth
Fewer newbuilding orders and increased ship scrapping are expected to moderate net fleet growth in the medium term
Fragmented market
Handysize sector remains highly fragmented and we continue to maintain a significant market share
Market cycles and volatility
Our business model, know-how and understanding of shipping cycles enable us to outperform throughout the cycle, manage our balance sheet, stay strong and reliable, and expand and renew our fleet at cyclical low prices
Environmental considerations and regulation
Our drive for fuel efficiency ensures that emissions concerns are aligned with our strategy, and our award-winning in-house technical operation ensures we meet all regulatory requirements and industry best practices
Limited supply of seafarers and shore-based talent
Our growth is challenged by a short supply of seafarers and shipping executives, but the strength of our employer brand, industry network and personnel function allows us to attract and retain the staff we need
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