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Annual Report 2013
COSCO has an established presence in the dry bulk
shipping business. Currently comprising a fleet of
11 dry bulk carriers with a total carrying capacity of
607,600 DWT, our ships ply global trading routes,
transporting cargo such as iron ore, coal, steel, cement
and fertiliser to major ports worldwide. Some of
these dry bulk carriers are chartered out to other
ship owners and operators, and serve our large client
base of shipping companies from Germany, Norway,
Denmark, Greece, Switzerland, UK, USA and others.
The Baltic Dry Index (BDI), a key measure of shipping
costs for commodities, started 2013 at 698 points and
ended it at 2,277 points, mainly driven by Capesize
dry bulk carrier freight rates. However, as our fleet
only consists of Handymax and Panamax carriers,
the freight rates of the afore-said carriers did not
increase significantly compared with the previous
year. In FY2013, the turnover from dry bulk shipping
and other businesses was steady at $55.6 million.
As a percentage of Group turnover, this segment
accounted for just 1.6%.
Nonetheless, any rebound in the BDI may be short-
lived or subdued as expansion in the global bulk
carrier fleet continues to outpace demand. This will
influence our dry bulk shipping business as well as
our bulk carrier ship building operations. Be that as
it may, we have to continue building on our strengths
and networks in the new financial year.
Operat i ons and F i nanc i a l Rev i ew
DRY BULK SHIPPING
ANDOTHERS
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