One of the harder hit sectors during the current economic situation has been shipping. Ocean or land shipping companies found costs rising and volumes decreasing. Fortunately, the sector is one of those that will always be needed in a global trading environment. Finding a well positioned beaten down company that has been staying on top of its finances is a sure way to come out a winner when trans-shipment resumes in full force.
B&H Ocean Carriers Ltd., a bulk storage ocean transport company, works to transport ocean going bulk and liquid products across long ocean distances. Its primary products include: coal, refined petroleum products, and liquid commodity products such as vegetable oils and malaises. From a quick assessment it does, however, appear that the company’s main business is more oriented toward dry goods such as sugar, coal, grain, bauxite and other bulk transport commodities. Currently the company owns 12 vessels of varying configurations.
As the world economy slowly works its way out of current conditions, one can easily understand how an ocean going shipping company needs to be fast on its feet to keep itself moving forward. B&H Ocean is no different. It does however, have one advantage. In the shipping world a company must carry the costs until delivery is made. Obviously this is difficult when exports and imports are exceptionally lower and fuel is rising. B&H, however, has a slightly smaller fleet and selection of ships. This will let them charge a bit less and gain market position as the economy starts to roll. Additionally, China’s appetite for coal and other commodities from Australia is perfectly suited for B&H’s shipping structure.