Norway’s Klaveness Combination Carriers (KCC) has halted Red Sea voyages due to the escalating security situation.
With attacks continuing from the Houthis in Yemen, the Oslo-listed owner said its vessels will not use the Suez Canal until things improve.
In a trading update, it said its Cabu ships that carry caustic soda and dry cargo ended the fourth quarter with an average rate of $36,110 per day.
The Cleanbu oil product and dry bulk vessels averaged $37,537.
The fleet average time charter equivalent earnings were $36,823 — about $4,600 higher than in the preceding three months and $3,050 above the mid-point in the company’s guidance range.
KCC said its Cabus do not trade in the Red Sea region, while the Cleanbus make transits from time to time.
“The decision is expected to have limited impact on KCC business activities and financial performance,” it said.
The Cabu fleet continued to deliver historically strong earnings, $1,000 lower than the record in the third quarter, KCC added.
They benefited from high levels for fixed-rate caustic soda contracts and stronger dry bulk earnings.
US Gulf good for tanker legs
The operational efficiency was “somewhat weaker”, however.
Earnings came in $1,100 above the mid-point in the guidance range, mainly due to the longer duration of caustic soda legs, with ships less exposed to dry bulk, where rates were lower.
Cleanbus were up by $9,600 per day from the third quarter as the product tanker market and dry bulk sector improved.
The ships beat the guidance mid-point by $4,550 per day, largely due to the “considerable strengthening” of the US Gulf tanker market, where KCC had several vessels in position.
The full financial results are due on 16 February.
