A dry bulk owner that loves to pursue logistics projects is predicting that those ventures may flow more freely now as a result of the Democrat Joe Biden emerging as the apparent president-elect in the US.
While the other big factor weighing on projects, Covid-19, remains a big obstacle, doubts stemming from the US political situation appear to be easing, according to Pangaea Logistics Solutions chief executive Ed Coll.
"We have two big problems: one is Covid-19, which is really out of control," Coll said on Pangaea's earnings call for the third quarter on Thursday.
"The second problem is the political problem, and it's been this way for awhile. The instability in our political situation means that people can't make decisions or go forward. That's not helpful for our business or for any business. With that stabilised, there would be a lot more business to come."
Noble Capital Markets shipping analyst Poe Fratt asked Coll whether he meant that a Biden presidency would be more favourable to the extent that it reverses tariffs and other trade barriers erected by President Donald Trump.
"We've been working on projects for awhile that have been stalled: part of it is Covid and part of it is the political instability," Coll said.
"I think it's the confrontational style. It's just the fact that you wake up every morning and you don't know what the next thing is. Without getting political, there's just some other crazy thing going on. How do you make capital decisions?"
Pangaea is an unusual dry bulk owner in that it's willing to take on projects in port and terminal development, stevedoring and other venture to supplement its core strengths in the Arctic ice trade and niche contract cargoes.
In 2019 it developed a temporary port high above the Arctic Circle in Greenland to carry what it called the northernmost dry cargo ever, a shipment of ilmenite sand used in making titanium.
It also took on joint management of a terminal in Fall River, Massachusetts under 20-year contract for development as a "laydown" area for massive offshore wind-farm projects.
Coll was keeping his cards close to his chest Thursday as to what new projects may be in store, but did say Pangaea has more in the works.
"We're quite hopeful some projects will come to fruition," he said. "We're doing other things in the logistics space that will come out pretty soon."
In other business, Pangaea has whittled its fleet to 17 with the sale of a fifth vessel in the past year, dealing the 50,992-dwt Bulk Beothuk (built 2002) in a previously announced deal.
Pangaea is expecting to take delivery of two ice-class newbuildings in the spring of 2021 and two more later in the year from China's Guangzhou Shipyard International, part of a fleet overhaul that is set to reduce average age from 13 years to about eight.
