Western Bulk ASA, a leading global dry bulk shipping company, has entered the quarter with an almost balanced book with slightly less cargo contracts than vessels, giving a good downside protection in a falling market, the company said in its press release. The division fully utilized its 3,100 optional vessels days available in the quarter at an average charter-in rate of about USD 9,800/day.
WB Chartering used the cargo contract coverage booked for Q1-14 during Q4-13 to create a profitable trading pattern in a challenging market environment. In the anticipation of a seasonal stronger Atlantic area for Q2-14, the margin per ship day has been negatively impacted from taking more backhaul cargoes and some ballasting to reposition vessels from the Pacific area and into the Atlantic area during the quarter.
WB Chartering saw a slight decline in its fleet to 178 vessels operated in Q1-14, compared to 186 vessels in Q4-13 (153 vessels on average full year 2013) and has added about 5,700 extension option days for future periods.
In March, WB Chartering scaled up the Panamax team by employing 9 persons previously employed by K2 Shipping in Oslo. In addition, K2 Shipping has re-let some cargo contracts and chartered-in vessels to WB Chartering.
WB Shipholding took delivery of one new-built Eco-vessel that is charered-in on long term charter with purchase options. The vessel is chartered out to WB Chartering on a long term charter.