Ethnarchou Makariou 2 & Posidonos Avenue, 17455, Kalamaki, Athens, Greece  |  Email: venmar@venmar.gr |  Tel.: 0030-2109859464, 0030-2109858193 | Fax: 0030-2109859465
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FLEET

Current fleet and vessel deployment

Since its incorporation the company managed a number of vessels which were sold during the high market Period between 2007 and 2008. The vessels were realized at almost double the initial purchase prices. Venmar today is having on order four Post Panamax bulkers 92.500 dwt.

The vessel’s technical condition can be described as outstanding and enjoys sound interest from international charterers. It should be noted that our company has zero exposure to bank loans or any other financial third parties, since all our investments have been concluded through our company’s shareholders.

Venmar employs its managed vessels in a combination of spot charter market and period time charters. With growing fleet we intend to employ vessels in drybulk carrier pools.

A spot charter and a period time charter are contracts to charter a vessel for an agreed period of time at a set daily rate.Under a spot charter,this daily rate can either be a contract to carry a specific cargo for a per day rate or a per ton carry amount depending on the agreement with the charterer.Vessels operating on period time charter provide more predictable cash flows, dut can yield lower profit margins than vessels operating in the spot market during periods characterized by favorable market conditions. Vessels operating in the spot market generate revenues which are less predictable but may enable VENMAR to increase profit margins during periods of increasing drybulk charter rates.

Our company may from time to time employ its vessels (projected) in carrier pools.

These pools,operated by third parties,bring together vessels from one or multiple owners to service the needs of charterers. In this arrangement, voyage and operating expenses are paid by the pool manager, and VENMAR would paid its “ share “ of the voyage revenues on a predetermined schedule.

Drybulk Carrier Industry Overview

The marine industry is an essential link in international trade, with ocean-going vessels representing the most efficient, and often the only method of transporting large volumes of basic commodities and finished products. In 2006, approximately 2.7 billion tons of drybulk cargo was transported by sea, comprising more than one-third of all international seaborne trade.

Drybulk cargo is shipped in large quantities and can be easily stowed in a single hold with little risk of cargo damage. Further, drybulk cargo is generally categorized as either major bulk or minor bulk. Major bulk cargo constitutes the vast majority of drybulk cargo by weight, and includes, among other things, iron ore, coal and grain. Minor bulk cargo includes products such as agricultural products, mineral cargoes (including metal concentrates), cement, forest products and steel products and represents the balance of the drybulk industry.

Drybulk Carrier Supply

Handysize-vessels up to 35.000 dwt carry exclusive minor bulk cargoes. Historically,the Handysize drybulk carrier sector was seen as the most versatile. Increasingly, however, this has become more of a regional trading, niche sector. The vessels are well suited for small ports with length and draft restrictions and also lacking infrastructure.

Key elements influencing the supply of drybulk carriers are vessel deliveries and the loss of existing vessels through scrapping or other circumstances requiring removal. Also, a comparison of vessels in each category reveals that Handysize vessels when compared to the other categories (Handysize,Panamax,and Capesize carriers) have the smallest percentage of current fleet on order.

The number of ships removed from the fleet in any period is dependent upon prevailing market conditions, scrap prices in relation to current and prospective charter market conditions as well as the age profile of the existing fleet. The supply of drybulk carriers is not only a result of the number of ships in service, but also the operating efficiency of the worldwide fleet.For example, port congestion can absorb additional tonnage and therefore tightened the underlying supply/demand balance.