homebusiness Newscompanies NewsIsrael Hamas conflict: No impact on shipments yet, says GE Shipping CFO
Israel-Hamas conflict: No impact on shipments yet, says GE Shipping CFO
G Shivakumar, Executive Director and CFO at Great Eastern Shipping Co. said as of now, there is no discernible impact on the shipping industry due to the unfortunate situation in the Middle East.
Concerns are growing across industries regarding the potential trade disruptions stemming from the Israel-Hamas conflict. However, the shipping industry remains largely insulated so far, according to G Shivakumar, Executive Director and CFO of Great Eastern Shipping Co.
"There is no impact on shipping currently,....it's not on the main trade routes, there is no impact on cargos either," he said in a chat with CNBC-TV18.
He said a seasonal rise in demand for oil tankers is due now. Crude oil tankers earn approximately $25,000 per day, while dry bulk prices have surged from around $10,000 per day to an impressive $25,000 to $30,000 per day for larger tankers, he said.
GE Shipping recently sold its 2006-built Supramax Dry Bulk Carrier, Jag Rohan, to a third-party buyer, with delivery expected in Q3. The sale was profitable, as the ship had been purchased when market conditions were less favourable, Shivakumar said.
In an earlier interaction, the company had stated that the offshore fleet comprising 19 supply vessels would come up for re-pricing in the next two years. GE Shipping will probably get a $40,000 per day rate for each of the vessels in the next year, which is a significant increase from previous rates, he noted.
GE Shipping is one of India's largest private shipping companies. It mainly transports liquid, gas, and solid bulk products. It operates in two segments: Shipping and Offshore.
Shares of GE Shipping were up a little over 1% today at around Rs 866 on the NSE. The stock has gained more than 8% over the past month.
(Edited by : Shweta Mungre)
First Published: Oct 12, 2023 11:30 AM IST
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