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TRADE REPORTS BULK CARRIERS by J.D. Arkell Since Charente have now taken two handy-sized geared bulk carriers on long term charter, the responsibility for the control of the bulkers (which now number seven) has been divided between John Arkell and Michael Seaford. The "WANDERER", "WARRIOR", and "WAYFARER" continue to be controlled by John Arkell, with the addition of the "LANTAU TRADER" which also operates in the Atlantic Bulker Consortium. The "SPECIALIST" and "STRATEGIST", along with the "AUTHOR" are controlled by Michael Seaford, together with the "LAMMA FOREST". The latter vessel operates in the Scanscot Bulker Consortium. The Atlantic Bulkers Consortium is made up of twelve geared bulk carriers with deadweights varying from 25,500 - 30,220 tons involving six shipowners, and employment is obtained by Denholm Coates & Co. Ltd., who are the Consortium Brokers and Managers, with each Owner or Disponent Owner being responsible for the operation of his vessels within the framework of the Consortium Rules and under the direction of the "Pool Manager", who is the senior Director of Denholm Coates & Co. Ltd., as well as being a Director of Denholm Ship Management Ltd. of Glasgow. All incomes are pooled and divided equally between the vessels after deduction of voyage and running costs. The Scanscot Consortium was founded in 1967 by Scandinavian and Scottish shipowners, who built sophisticated open hatch bulk carriers with an eye to the lumber, pulp and paper trades. There are presently twelve vessels in the Consortium with nine owners. The vessels have varying capabilities, i.e. some can double up as container vessels and most are strengthened to Ice Class lA for trading in the far north during winter periods. Because of the great variety in the entered tonnage, a formula was devised in an endeavour to distribute the income in a more equitable manner, having regard to the investment involved in the different types of vessel, coupled with their respective earning power. This Consortium differs from the Atlantic Bulkers Consortium in another respect: Brostroms in Gothenburg, as well as acting as Brokers and Pool Managers, also operate the vessels on behalf of the shipowners. Thus direct communications between shipowner and vessel are rare for commercial matters. The tramp market in the Dry Bulk Carrier sector for every tonnage size remains very depressed and over-tonnaged for all the reasons stated previously. The "S" Class vessels continue to operate at a loss, with daily time-charter rates in the Far East being in the U.S.$4,000-$5,500 per day bracket, although at the moment the Atlantic is showing rates in the U.S.$7,000-$7,500 per day region. However, this is felt to be only a temporary upswing with the traditionally quiet summer months approaching. The "W's" and the "L's" are trading just above the break-even point, which equates to a daily timecharter rate of about U.S.$5 ,500 per day. However, in order to secure these rates we often have to fix the vessels to places off the beaten track. The "SPECIALIST", after being cancelled by her charterers (unreasonably in our view), remained at anchor off S.W. Pass for some two weeks before we were able to fix her to TRADAX on a voyage charter basis for a cargo of yellow corn from Reserve to Chiba, Kawasaki and Kashima. On completion of discharge in Kashima on 27th April, the vessel ballasted unfixed to the "Harrison Buoy" at the mid-course position in the Pacific for turning to Australia or West Coast U.S.A. She was turned towards the U.S.A. and subsequently fixed to TRADAX for a repeat voyage and is presently due off S.W. Pass on 30th May. 7


Harrison News Letter No35