Mercator: (The Edge)

Mercator: (The Edge) Bites the bullet with vessel sale, charter terminations as outlook brightens. Grp CEO note that ‘The Dry Bulk sector is bottoming out’ and sense is that it could happen by yr end. So Grp positioning itselves, and is getting its B/S ready inorder to position itself to secure long-term contracts and get the financing needed to buy new ships. CEO add that Mercator’s current losses will prove to be temporary and its only a matter of time bf it turns the corner. Currently vessels coming out of contracts are being chartered on spot rates to avoid locking in rates at unsustainable levels. Grp’s bullishness hinges on that; Some shipyards have begun to raise their prices for new build bulk carriers, while prices for second hand vessels appears to be stabilising, and prices don’t look like they have much room to go down any further. In addition, higher scrapping activity and a lower vol of orders for new ships over the past 2-3 yrs have helped to curb the over supply of tonnage in the market. Ship financiers and analysts also appear to be turning positive on the dry bulk sector. DvB Bank note that recently PE is coming into the ship market, to increase its exposure to the bulk and container shipping sector.