Thursday, December 18, 2008

Dry Bulk carrier Atlas Shipping goes Bankrupt

Atlas Shipping is a Danish dry bulk carrier. They started out in 1996 and have used chartered tonnage to date, but have orders with ship yards for new buildings.

The market has collapsed, and they realize they will not be able to withstand it, even though their bank would probably give them more money.

From Lloyd's List, Dec. 18, 2008

Mr Moller denied that the company had lost the confidence of its bank, Den Danske Bank. “No that’s not the issue. The issue is we have been run over by the market.”

He also recognised that the vessel owners will be hit by the company’s bankruptcy. “Others will be hurt, that is the unfortunate truth,” he admitted.

“We have 41 vessels under our control right now and we want to do something positive with the owners. All the vessels are chartered in, so the owners will be hit, or the operator in between,” he confirmed.

The role of Atlas as a major charter was also underscored by a leading London broker.

“I think it will very much have an effect on the market as they are a major player. I don’t think it will affect rates but I expect quite a few ships will be delivered back to head owners.”

He said he couldn't be specific but Atlas would probably be two or three down a chain.

Guess maybe I should start a score card of the bankrupt steamship lines.
This could also very well cause a drop in the BDI (Bulk Dry Index).

Things are getting ugly in the world of international shipping. Well, for that matter, I guess in most industries. I guess maybe the repo guys are doing well.

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