Braemar remains upbeat

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Braemar Shipping Services has given an upbeat assessment of its performance since the end of August last year.

In a statement, it said it had benefited from a dry bulk market which has been stronger than many expected during much of 2009, particularly in the latter part of the year. “This has mainly been due to the continuing high demand from China, and to a lesser extent India, for the import of raw material which has been sufficient to absorb the arrival of new tonnage and for the return of port congestion.”

It said it had also benefited from a good level of sale and purchase activity and demolition broking remains extremely active as the scrapping of older ships, particularly in the container and tanker sectors, continues to grow. “For much of 2009 the tanker market rates have been weak due to lower global industrial energy demand and the impact of newbuilding deliveries. But there has been some improvement in rates in recent months and the Group’s transaction numbers remain strong,” it said.

Additionally, Braemar’s specialised tanker team has won some important new business in recent weeks and the Group is growing its presence in the wet FFA (Forward Freight Agreement) market.

The established Technical, Logistics and Environmental divisions are all performing in line with expectations, the group said.

“The Group’s activities are strongly aligned with world trade – a key driver of shipping – which alongside most large economies has been improving over the past six months. The prospects for the Group are positive while this recovery continues,” it said.