Singapore-based dry bulk operator Omegra Shipping has pulled in a forward contract of affreightment (COA) that will see it carry a large volume of sugar into Malaysia — in 2023.
The counterparty in the deal, described as the fourth-largest producer in Brazil with annual production of 4.2m tonnes, has tasked Omegra with moving 250,000 metric tonnes of very high polarity sugar from Brazil.
The contract comprises five stems that will be delivered between January and July 2023.
While the signing of such a COA for that volume of cargo might not seem particularly noteworthy, what is unique is that the business is being booked so far in advance.
Dry bulk sources in Singapore said the deal indicated that a longer-term perspective is re-emerging in the dry-cargo market after months of extreme disruption.
Lukasz Ogryczak, Omegra’s managing director, said the Covid-19 pandemic “has reminded business practitioners of the importance of supply chain sturdiness”.
“Dry-cargo shipping is not just a question of dollars and cents. It is part of the total value chain of our clients and this becomes clearer in times of turbulence,” he explained.
“Commissioning this series of shipments almost three years ahead provides us with a great opportunity to plan and manage our activities.”
Established in November 2013, Omegra is majority owned by South East Asian business conglomerate FKS FA Group. While it works closely with affiliated commodities trading company Enerfo, it is an independent, stand-alone shipping company servicing multiple clients.
Since its inception, Omegra has maintained an asset-light business model, with a fleet comprised entirely of vessels taken on a mix of short, medium and long period charters.
“A purely time-chartered fleet with option periods gives flexibility to adjust market exposure as we must maintain our optimal position throughout the shipping cycles,” Ogryczak told Tradewinds last year.
Today, Omegra operates about 40 to 50 vessels at any given time, with panamaxes and kamsarmaxes serving as its main workhorses.
The company is described by brokers as being a very selective charterer with a strong preference for young, Japanese-built ships from financially stable owners and tonnage providers.
Ogryczak said the sugar contract fitted well into the controlled expansion path Omegra has followed since its inception, and showed the company “has reached a level where we can be shortlisted and accepted for substantial, forward freight requirements by high calibre industrial producers”.
