Double naming of Handysize dry cargo vessels - Corporate News
19 May 2009
During June-July, the 2 first Handysize bulkcarriers will be delivered to NORDEN. The vessels are part of a series of 10 newbuildings which the Company has on order from Jiangmen Nanyang Ship-engineering Co., Ltd. (JNS) in China.
NORDEN started operating in Handysize in 2006, but has so far only operated chartered tonnage. The newbuildings from JNS are therefore the Company's first owned Handysize vessels.
At a ceremony at the yard in Jiangmen, the 2 vessels were recently named NORD SHANGHAI and NORD MUMBAI. Sponsors at the naming were Dmitry Samoylov, Head of Chartering with Belarusian Potash Co., one of the world's largest exporters of fertiliser for the agricultural sector, and Vice President, Supply, Masood Talib Al Ali from Dubai Aluminium Co., a globally leading manufacturer of aluminium to the automobile and electronic industries.
In addition to these two important customers, representatives from the yard and sub-suppliers also participated at the ceremony. While NORDEN was represented by General Manager Christian Ingerslev, Head of the activities in Handysize, and the employees from the local site office managed by Site Manager Mortan Gaasedal.
Handysize is the vessel type in dry cargo in which NORDEN is expanding the capacity the most. In addition to the 10 newbuildings from JNS, NORDEN has other newbuildings on order until 2011. To this can be added that the Company also has 7 vessels with purchase option on long-term charter until 2012.
Handysize is the term for the smallest bulkcarriers of 10,000-40,000 dwt which transports alumina, fertiliser, cement, steel, pet coke, salt, etc. Handysize is the vessel type in which there are the oldest vessels, most scrapping and the lowest number of newbuildings on order. According to Clarkson Research, the world fleet counted more than 2,800 vessels at the end of March, and this number has been constant for years among other things due to record-high scrapping in recent months. The official order book only corresponds to 38% of the world fleet, whereas the average of the entire global dry cargo fleet is 70% and, in addition, the scrapping potential within Handysize is greater than in any other vessel type since almost 60% of the world fleet is more than 20 years of age.
Pool from the autumn of 2009
In terms of demand, Handysize benefits from the fact the many cargo consignees do not wish to tie up unnecessary funds in major stocks of valuable raw materials, and therefore they decide not to transport on large vessels preferring just-in-time deliveries on the smaller Handysize vessels. At the same time, restrictions imply that Handysize vessels are alone in being able to call at many ports.
Like their future sister vessels from JNS, NORD SHANGHAI and NORD MUMBAI are of approximately 32,500 dwt, and this reflects that NORDEN is particularly focussed on vessels of 28,000-35,000 dwt. Along with the fleet of chartered vessels, the newbuildings will be transferred to the Handysize Pool which NORDEN has agreed to establish with Interorient Navigation Company during the autumn of 2009. The Pool is expected to start by operating 20-25 vessels, and the number will increase steadily in the years to come.
NORDEN