Various Dry Bulk vessel operators deploy different chartering strategies. In this edition of the DMFR’s weekly EDCs, we look at three of the top Dry Bulk operators, who, despite having similar fleet composition, employ very different chartering strategies. COVID-19 and its effects were unexpected, to say the least. And today, almost a year after the pandemic began, we look at how each operator has fared so far, and which strategy has worked best.
The Chinese government has prohibited the import of Australian coal, which will be detrimental for dry bulk vessels as Chinese importers will shift from Australia to Indonesia and Mongolia, resulting in a decline in average haulage length and a loss in shipping demand.
Since its IPO in 2011, Hutchison Port Holdings Trust (HPHT or the company) stock has been on a downward trend (down ~90%). In the more recent years, the company’s equity market performance has been battered by a number of adverse events including i) Hong Kong’s inability to cope with increased competition from its Chinese counterparts, ii) the US-China trade war, and finally iii) COVID-19-led trade disruptions.
Growth in seaborne perishable cargo slowed in 2019 but is forecast to better weather the COVID-19 induced economic storm than the dry cargo trade given the broader resilience of the food supply chain, according to Drewry’s latest Reefer Shipping Annual Review and Forecast.