GE Shipping plans Rs2k crore capex
Great Eastern Shipping Company (GE Shipping), has drawn up a capex plan of approximately Rs2,075 crore to expand its fleet and dry bulk capacities. According to the company CMD, Bharat Sheth, GE Shipping has a total capex commitment of around US$437 million, which will result in addition to the tonnage of about 0.68 million deadweight tonnes (DWT) of 2 tankers and five dry bulk carriers. The company has 12 crude carriers, 18 product carriers and one gas carrier along with 31 tankers and six dry bulk carriers, he added.
All through Q2, the tanker market has remained depressed with earnings close to operating costs. The major reason for this was high crude inventory levels coupled with decline in demand for refined products from OECD countries, resulting in a huge over-supply.
However the dry bulk trade segment has registered marked improvement mainly due to large iron ore and coal imports by China. This coupled with increased tonne-mile and port congestion helped the rates to firm up. On the supply side, significant scrapping and order book slippage limited fleet growth.