This was the description given to the Berge Stahl by Preben Bjørn-Hansen, Bergesen’s dry-cargo chartering manager, since the vessel was built at a time when prices were favourable and the ballast leg is short. The Berge Stahl is a 364 767-dwt bulk carrier built in 1986 and one of ten ships in Bergesen’s bulk carrier fleet.
Bergesen is one of the world’s largest shipping companies, transporting energy products all over the world. Headquartered in Oslo, it has some 3 500 employees worldwide. The Berge Stahl carries iron ore from Brazil to Europe for Thyssen Krupp Steel.
“China is the big driver in the market,” says Bjørn-Hansen, “with its iron-ore imports reaching a record 208 million tonnes last year, up from 148 million tonnes the previous year. This corresponds to an increase of 40.5 per cent. Also, the trade - from Brazil to Europe in particular - is booming. US steel imports grew by 56 percentage points last year and China imported five million tonnes of steel, compared to the ‘normal’ import level of one million tonnes, before its own steel production reduced this to about two million tonnes in the late winter. Much of the imports have now been replaced by exports. We are very much involved in trade in the Atlantic regions as well as from the Atlantic to the Pacific. Our big advantage is that we have vessels tailored for these trades, like the Berge Stahl.
“The biggest challenge right now is congestion in ports. The current norm is that a roundtrip with a cargo can take much longer than it used to?? and that the Berge Stahl, for instance, can be waiting three weeks in Brazil to take the cargo. The wait in Rotterdam can also be substantial. There are, especially in China, new ports under construction to meet the demand, but right now we can add some 30 per cent time to any roundtrip.
“In my view, the bulk market will be in better balance in 2007, that is the balance between the tonnage available and transport demand, unless some unforeseen event should take place. There are currently some 8 million grt of new ships under construction per year in this market and no scrapping. This has also helped to increase the price for new bulk carriers to typically some USD 62 million for a vessel.
“The Berge Stahl has been trading successfully since she was built in 1986, with no major problems at all. This is the perfect ship for the trade from Brazil to Rotterdam. Our policy is to run a vessel for 25 years, and the Berge Stahl is starting to approach this age. Technically speaking, the vessel is in very good shape as she was built to be very strong. So maybe she will sail for 30 years,” says Bjørn-Hansen.
Date: 08 February 2008