Goldenport shifts focus

Goldenport Holdings has trimmed its first quarter red ink and has stated an aim to boost its dry cargo exposure while reducing its boxship fleet.

John Dragnis-led Goldenport lost $1.85m in the opening three months of 2014, an improvement on the $2.43m shed a year ago.

It came as a reduced fleet contributed to lower revenue of $12.42m this time around.

Dragnis said: “Dry bulk asset prices remained broadly stable quarter-on-quarter, notwithstanding a correction in rates. That said, supramax rates have been higher than capesize and panamax rates in absolute terms for several weeks, reflecting their versatility and reduced earnings volatility.

“We evidenced a single-digit recovery in containership rates but earnings remain at levels close to all time lows.”

He added: “In anticipation of a recovery, we have continued to employ our fleet on a short term basis under three to six month time charter agreements, but we are witnessing increased appetite for six-12 month time charters which we may choose to selectively enter into at profitable levels.”

Despite the weak first quarter, Dragnis says this year will see Goldenport’s vessels employed at better rates than in 2013.

He points to the FFA market, which is indicating supramaxes at $12,875 per day for 2014; above the $10,328 per day achieved in 2013.

“We believe that the outlook for the dry bulk sector for the remainder of the year is positive, especially in light of recent news flow regarding increased Indian coal exports, the lifting of the ban on Indonesian bauxite and coal exports and the upcoming US grain season,” Dragnis said.

“The outlook for the containership sector is also positive but less clear due to a lack of obvious catalysts.

“We are therefore planning to further increase our exposure to small- and medium-sized dry bulk carriers and reduce our exposure to older containerships, while maintaining a competitive operating cost base.”

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