| Taipei-listed bulk carrier Franbo Lines on 11 March posted a revenue of TWD57 million (USD1.8 million) for this February, up 32.57% year on year (y/y). Its revenue for the first two months of 2015 totalled at TWD120 million, a 14.11% increase y/y. Franbo Lines stated that the drop of Baltic Dry Index (BDI) recently was caused by the slide in freight rates for vessels with tonnage of 50,000–80,000 dwt and above, as well as tankers. However, the carrier stressed that the BDI drop had little influence on the rates of Handysize vessels. The carrier's fleet is mainly made up of 16,500 dwt bulk and general cargo carriers with heavy lifts, which are used for the shipment of machinery and key parts. The demand and supply of this market is going to balance, stated Franbo Lines, and most of its ships have secured long-term contracts with Japanese companies. Three newbuildings are expected to be delivered to the carrier in September 2015 and 2016, with gross profit rate of 45–50%. The carrier will keep renewing its fleet and explore Europe and US market, stated Franbo Lines, and it plans to take two or three newbuildings every year. At present, Franbo Lines operates a fleet of nine vessels, four with long-term chartering contracts, three with short-term contract, while two are operated by itself. Three of its ships have obtained the “Cross-Strait Ocean Shipping Permit” issued by Beijing, which has enhanced its ability of direct mainland China-Taiwan shipping. |