Understanding Our Core Market
the dry bulk Sector
Why we focus on minor bulks
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.
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%