NORDEN buys bigger ships, sees China commodities trade picking up

Dampskibsselskabet Norden A/S

30/03/2023 14:20

By Jonathan Saul
       LONDON, March 30 (Reuters) - Shipping group NORDEN has
acquired larger capesize dry bulk ships, aiming to benefit from
China's economy reopening and expectations of a pick up in
commodities trade, the Danish company's CEO said.
    Three years of rigid border controls and sweeping lockdowns
during the pandemic have sapped business confidence in China,
especially among foreign firms, according to sentiment surveys. 
    China has set itself a target for gross domestic product
growth of around 5% this year, after significantly missing its
target for 2022. That is lower than the International Monetary
Fund and some private forecasters think it can achieve.    
    NORDEN has acquired four capesize ships and is separately
looking at chartering in further capesize vessels going forward
as part of its strategy, Jan Rindbo said. 
    "With the reopening of China after COVID, we can see right
now at least that sentiment and demand is much more China driven
than it is world GDP driven and that tends to favour the
capesize segment more," he told Reuters.
    Capesizes, among the largest dry bulk ships, typically haul
industrial commodities such as coal and iron ore and are a vital
transport link for China's trade. Other commodities such as
bauxite are also being increasingly shipped on capesizes.    
    Tighter ship availability, due to a low order book for the
first time in years, has also supported prospects for the dry
bulk sector.
    "We are still worried about the global economy and the
banking crisis has not helped that picture," Rindbo said. 
    "But at the same time, we also feel that the order book is
very low. With the Chinese economy seemingly kicking into a
higher gear, there is room for some optimism."
    NORDEN's operated fleet averages over 450 ships including
over 300 dry bulk ships and more than 100 oil products tankers.
    Rindbo said larger ships also provided "freight and also
emissions savings".  

 (Reporting by Jonathan Saul
Editing by Mark Potter)
 ((jonathan.saul@thomsonreuters.com; + 44 207 542 4357 ; Reuters
Messaging: jonathan.saul.thomsonreuters.com@reuters.net))