Double-digit returns long way off, says shipping broker

 

 

 

Double-digit returns long way off, says shipping broker

07 December 2014
 
Bulkers waiting to load off Dalrymple Bay, Australia. Photo: Southern Cross Maritime

GERMANY: Distressed asset investors and hedge funds chasing ship buying opportunities could be bitterly disappointed even if freight and second-hand markets pick up over the coming years.

Double-digit returns per annum, as targeted by many private equity investors, are likely to remain an absolute exception, according to Germany's Ernst Russ Shipbroker.

Current second-hand price levels for bulk carriers appear to be based on a much less bullish but probably more realistic earnings expectation in the mid single-digit range, the dry cargo and container ship broker points out in its latest monthly Maritime Overview report.

Average prices for five-year old Capesize and

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Star Bulk Carriers Corp. Downgraded by Zacks (SBLK)

 

 

 

 

 
 
 
 

 

Star Bulk Carriers Corp. (NASDAQ:SBLK) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a report released on Friday. They currently have a $6.70 target price on the stock. Zacks‘s price target suggests a potential downside of 5.50% from the stock’s previous close.

Star Bulk Carriers Corp. (NASDAQ:SBLK) traded down 1.27% during mid-day trading on Friday, hitting $7.00. The stock had a trading volume of 170,699 shares. Star Bulk Carriers Corp. has a one year low of $6.27 and a one year high of $15.88. The stock’s 50-day moving average is $9.09 and its 200-day moving average is $11.32. The company’smarket

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Russian Recession Risk Seen at Record as Oil Saps Economy

 

 

Russia will sink into recession at a Urals price of $80 a barrel, seven years after its economy grew8.5 percent when its chief export oil blend averaged near $70, according to a Bloomberg survey of analysts.

Urals at $80, or about $3 cheaper than its average in the month through November 15, will tip Russia into a contraction, according to the median estimate of 32 economists. The probability of a recession in the next 12 months rose to 75 percent, the highest since the first such survey more than two years ago, according to another poll.

Russia, which receives about half of its budgetrevenue from oil and gas taxes, is closing in on its

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India to renew exemption granted to vessel sharing pacts of container lines

Globally, vessel sharing agreements seek to improve productivity and frequency of sailings and port calls, improve scheduling through the use of more modern vessels and other equipment, including port facilities. Photo: Bloomberg

India is set to renew the exemption granted to vessel sharing agreements (VSAs) among container shipping lines from the provisions of the country’s antitrust law.

The initial exemption given for a one-year period ends on 10 December.

A meeting held by the government with the stakeholders earlier this month to review the functioning of VSAs took note of the fact that there were no complaints against such agreements during the year-long exemption period.

It did not put barriers for new entities into joining such agreements nor did it adversely impact the existing shipping

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NordLB Holds Ship Provisions Stable as Slump Drags Into 2015

NordLB Holds Ship Provisions Stable as Slump Drags Into 2015

 

Norddeutsche Landesbank, Germany’s second biggest financier of ships, held provisions at its marine division stable in the first nine months of 2014 as an industry slump enters its seventh year.

The state-owned bank based in Hanover, Germany, set aside 474 million euros ($591 million) in the period through September from 478 million euros a year earlier, according to apresentation accompanying its interim report today.

“We do not expect the shipping markets to ease significantly in the near future, so we hold on to our conservative risk provisioning,” NordLB said in the presentation.

NordLB, which along with competitors HSH Nordbank AG andCommerzbank AG (CBK) passed the European Central Bank’s health check

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