Globus Maritime is sticking with its spot exposure ahead of an expected rise in bulker rates.
The Nasdaq-listed Greek shipowner said the market was significantly stronger towards the end of the third quarter.
“Seasonal factors as well as geopolitical ones played a role in the movement of the market. We are pleased that today it stands at a much healthier level, and we hope the upward trend continues,” it added.
Globus thinks that as supply and demand fundamentals remain constant, rates will improve gradually.
“We still prefer to maintain our spot exposure on the hiring of the fleet and continue to take full advantage of any potential market upswings,” it explained.
“By employing our vessels with short-period time charters and even longer periods of employment, we undertake in their majority exposure to the spot market through index-linked rates.”
The owner has six ships from supramax to kamsarmax, with five more on order.
“The company is always looking for ways to expand its fleet, especially focusing on modern or eco vessels, taking into account current as well as historical market conditions,” management added.
The idea is to target “careful expansion”.
“Our priority is to ensure the health of the company by maintaining a conservative approach but at the same time without sacrificing our presence in the market. We are working on expanding our current relationships with financiers worldwide,” Globus said.
Leaseback deal under discussion
The company said it is negotiating a sale-and-leaseback financing transaction for one of two ultramaxes on order at Nantong Cosco KHI Ship Engineering in China.
The aim is to sell the ship for $28m next September, with a bareboat charter back for 10 years.
The rate is set to be $3,000 per day for the first three years, rising to $3,800 per day for the final three.
The buyer has not been revealed.
Globus has repurchase options during the term, and an obligation to buy the bulker at the end of the contract for $15.81m.
Net profit in the third quarter was down at $3.5m, from $4.3m a year ago.
Revenue dropped to $7.7m, against $15.9m in 2022.