Norwegian Car Carriers has an eye on growth after a second successive profitable year in 2018, its chief executive says.
NOCC is owned by Klaveness Marine Holding and US-based JP Morgan and boasts six modern vessels and a 21-year-old ship.
It has ambitions to grow the fleet, but any plans to order new ships have been put on hold as it awaits new regulation.
Newbuilding prices increased throughout the year, “and we see that this is also reflected in the ship values for existing tonnage," chief executive Olav Sollie said.
While final figures for 2018 are not yet available Sollie said the company experienced a moderate increase in transported volumes of about 3% and an improved market balance.
NOCC, which was also profitable in 2017 after two years in the red, is considering investment in secondhand tonnage and is looking at consolidation.
At the same time there are no plans to sell the company’s oldest vessel, the 6,400-ceu Asian King (built 1998), as the ship went through special survey last September.
Sollie explained 2018 started with a balanced market for car carriers and all the company's ships were employed.
Time charter rates increased, partly due to positioning of cars as a result of new procedures for measuring emissions in Europe from 1 September. The second half of the year saw less activity and pressure on rates.
For 2019, Sollie expects a continued increase in transported volume, while the orderbook that now stands at 10 ships will be empty at the end of the year.
NOCC has several car carriers that are coming off charters this year and the company will fix the ships for shorter periods waiting for “healthier rate levels than can be achieved today”, Sollie said.
