7.1 Dry bulk

Torvald Klaveness is involved in the dry bulk market through its chartering and trading activities and the pool operations. The portfolio consists of contracts of affreightment, time charters and freight derivative contracts. Results from the chartering and trading activities were somewhat below expectations but still satisfactory taking into account the high degree of volatility in the markets. Increased volatility combined with improved positioning enabled the company to grow the trading forward values substantially during the year.

The company operates two spot pools, Baumarine for panamax and post-panamax vessels and Bulkhandling for supra- and handymax vessels. The number of vessels in the pools decreased during the year as a consequence of ships being sold, redelivered and some owners taking fixed income coverage.  At year-end, Baumarine operated 29 vessels and Bulkhandling 22 vessels – a net reduction of 24 vessels from the beginning of the year. However, this was to a large extent compensated by an increase in the number of ships chartered in by Klaveness Chartering. Corrective measures were taken during the year to improve earnings and realise the value creation in the pool services, visibly leading to an improved performance in the second half of the year. The Baumarine panamax pool delivered USD 200/day above the comparable 4 TC Baltic index while the Bulkhandling Supramax pool delivered slightly below the relevant benchmark.