Low Freight Rates Affect CBM’s Q1 Results

first_imgzoom The executive committee of Compagnie Maritime Belge (CBM), a maritime group seated in Antwerp, has reviewed the results recorded for the first quarter of 2014.The consolidated result for the first quarter 2014 amounts to USD – 3. 1 million. Bocimar, the company’s dry cargo transport arm,  contributes USD -4.3 million to the consolidated result for the first quarter of 2014.Despite generally held optimism, the first quarter of 2014 was characterised by seasonally low freight rates.The Cape market was once again affected by amongst other things weather-related factors – leading to high volatility – and the effects of a disruption in coal exports from Colombia. However, the main cause of the disappointment originates from the lack of Brazilian iron ore exports that were down by 25% on the previous quarter.In the other segments, notably for Supramax vessels, the Indonesian ban on exports of processed minerals (nickel ore, iron ore and bauxite) took a serious toll on freight rates, with a cascading effect on the smaller sizes.The average earnings for the first quarter for Bocimar can be summarised as follows:USD/day                                                2014                                        2013Capesize                                             22.740                                      25.075Panamax/Post panamax               10. 342                                       7.690Supra max                                          7.875                                          7.800Handysize                                          10.254                                         7.557Despite all the negatives, for the time being the market remains remarkably confident for a solid second half of 2014 and full year 2015.This optimism is founded on an active period market for periods of up to two years, strong FFAs for the third and fourth quarters of 2014 and a second hand market, with very strong prices paid for older Capesize vessels.As a result the market value of the Bocimar fleet has increased by more than 10% since the beginning of the year.Taking into account: that China will continue to import more and more iron ore, the availability of additional export volumes of iron ore and coal, that the moderate number of scheduled newbuilding Capesize deliveries for 2014 and 2015 will be absorbed by seaborne trade growth,Bocimar remains confident that markets will see more balanced supply and demand over the next 18 months.CBM, April 25, 2014last_img read more

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Clean industrialization critical for Africa to leapfrog outdated technologies – Ban

In a statement on the Day, Mr. Ban explained this that year’s theme Inclusive and Sustainable Industrial Development: Agro Industrial Development for Food Security focuses on the links between agriculture and development.“Agriculture still accounts for the major share of rural household income and employs over 60 percent of Africa’s labour force, particularly women,” the UN chief said.Low agricultural productivity continues to threaten food security in Africa as a whole. And while many African economies have shown impressive growth rates in recent years, increased prosperity does not always translated into inclusive wealth creation. “Far too often, economic development depends on the extraction of natural resources and on low-skilled labour, which has resulted in a weak manufacturing base and uneven distribution of wealth,” the Secretary-General said. Inclusive and sustainable industrialization is a “key stepping stone” towards sustained economic growth, food security and poverty eradication in Africa, he added. “I reaffirm the commitment of the United Nations to promote Africa’s inclusive and sustainable industrial development to help ensure an economically prosperous and socially integrated continent,” he pledged. In his remarks on the Day, President of the General Assembly Sam Kutesa, a native of Uganda, explained today that accelerating industrialization in Africa goes hand-in-hand with improving productivity and addressing infrastructure deficits, namely in energy, roads, ports and air connectivity. “While remarkable progress has been made in production…a lot of the surplus is often wasted due to lack of processing capacity and marketing,” Mr. Kutesa said. In recent years, throughout the continent, agriculture has moved to the forefront of the development agenda at both the regional and national levels. The Africa Union Agenda 2063 lays out a 50-year transformative plan for the modernization of agriculture and agro-business through scaled-up value addition and productivity.Mr. Kutesa underscored that investments in agriculture must go beyond improvements of on-farm productivity. He emphasized that inventions with the private sector are essential in designing and creating industries, jobs and increasing incomes. Enhancing cooperation and integration among stakeholders is also essential, as it facilitates better mobilization of resources for infrastructure development, he added.Within the framework of the Second Industrial Development Decade for Africa (1991-2000), the UN General Assembly, in 1989, proclaimed 20 November Africa Industrialization Day (resolution 44/237). Commemorating the Day, the UN Industrial Development Organization (UNIDO) will host a symposium in Vienna on 24 November to showcase relevant actions and success stories that promote Africa’s industrial development. The event will bring together representatives from the diplomatic corps, the private sector, non-governmental organizations and other relevant stakeholders. read more

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