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Star Bulk Carriers Corp. Message Board

  • PaperProphet PaperProphet Aug 16, 2012 2:50 PM Flag

    Some possible reprieve....

    All the articles I've seen expect the supply to continue to suppress shipping rates over the next few months.

    For the remainder of this year, it looks like slippage (delay in deliveries) may occur as ship buyers want to the orders to be delivered next year so the vessels seem one year newer. Thought it would seem the deliveries will start up again in January, maybe the slippage will give some reprieve.

    From this article, , it looks like there will around 400 deliveries for the rest of this year. Scrapping, if it stays at the same rate of 1.6 ships per day, should take away 200 of those out of the fleet.

    Star bulk probably isn't affected too much for the capes since all but one the capes are chartered at much higher rates well into 2013, 2013, 2014, 2015, and 2021.

    The supramax rates for Star Bulk may be hurt as those expire mostly Aug, Sept, Oct coming up. If I remember, Star Bulk said they would lose $1 million per quarter for every $1,000 below a $13,000 daily rate. Since the spot rate is about $9,000, Q4 would lose $4 million according to that formula. Star Bulk previously said they had $40 million in cash.

    Into 2013 most of the remaining orderbook should be delivered and new orders have already been heavily subsiding. It looks like it's still a waiting game, though.

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