Planning to add 2 more vessels to fleet: Shreyas Shipping

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Planning to add 2 more vessels to fleet: Shreyas Shipping

In an interview with CNBC-TV18's Udayan Mukherjee, Vinay Shirsagar, CFO of Shreyas Shipping & Logistics, spoke about the latest happenings in his company and the road ahead.

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In an interview with CNBC-TV18's Udayan Mukherjee, Vinay Shirsagar, CFO of Shreyas Shipping & Logistics , spoke about the latest happenings in his company and the road ahead.

Below is a verbatim transcript of the interview. Also watch the video.

Q: The Baltic Dry Index has been going up. It went up yesterday as well. Has it reflected in container rates going up the sector that you cater to?

A: The Baltic has gone up substantially from the July low of 1,800. Now it is over 2500, so almost it has gone up by about 600 plus point. This is mainly because of Capesize trans-Atlantic activity has increased, which has made this happen. The container market is quite stable but if we analyse the last month through-put in Hong Kong or Kuala Lumpur or Singapore, the through-put on month to month basis has certainly has increased.

The increase is about 8 to 9%. The container market is quite stable as compared to bulk. The bulk was 3,000 then it corrected to 1800 level and then it has again moved up.

Q: Last week we spoke to you the rates were around Rs 40,000 per container has that moved up closer to Rs 45,000 or are you pretty much there still?

A: No. As far as this rates, we are confined to our coastal shipping activity. Coastal rates have firmed up because diesel price are going up--deregulation talks have been on and the coastal shipping, as far as India is concerned, has got a very promising future. The coastal rates have gone up even in last month.

Q: By how much?

A: By about another 3% to 4% it has gone up.

Q: What is going on in the tanker market now?

A: The tanker market has made a bottomed out in last August and if we compare that bottom verses now the tanker market is certainly up, if we compare it on a year on year comparison. But in tanker market there are very-large crude carriers (VLCC) and Suezmax category. The VLCC market is stable but it is low and it is higher than the last year. As regards the Suezmax, there were a lot of activity and those rates have gone up in the last couple of weeks by about 8% to 10%.

Q: Are you adding any more vessels or capacity is the same or is likely to remain the same at Shreyas?

A: We do have a plan to add a couple of vessels more because things have stabilized and we have refocused our business model which has really worked. We have been able to make our self immune from the rest of the shipping market because the coastal shipping is confined to India growth story and there is a huge potential for costal movement.