RP CLIENT PRESS RELEASE ON PANAMAX POOL - 16th June 2015

PRESS RELEASE – London, 16^th June 2015

GMI launches its first Panamax pool

Global Maritime Investments (GMI), one of the largest Panamax/Kamsarmax operators in the world, has announced the launch of its ‘’GMI Panamax Pool’’, including both Panamax and Kamsarmax class vessels. After almost 10 years of spot market outperformance and an extensive experience of managing institutional assets, GMI has opened its doors to shipowners who want to be part of a market beating commercial management vehicle.

GMI was established in 2006 to manage institutional assets within the complex and highly volatile dry-bulk shipping markets. Steve Rodley, GMI’s co-founder said, ‘’Due to the depressed freight environment in the last three years, we’ve been approached by many shipowners suggesting we launch a pool and help them maximize their income and optimize fleet utilization. Consolidation, either in the form of commercial management or corporate mergers, is the only way forward for the dry-bulk market”.

This seems to make sense for both GMI and its client owners, since GMI now has ‘owned’ fleet consisting of ships ordered and Time Chartered-In for long period totalling 13 new Kamsarmax Vessels from Chinese and Japanese yards .  In a market where freight rates are disappointingly low, a network of contacts and cargo clients has enabled GMI to optimize earnings for its time-chartered fleet over the past few years. Now, with new investments coming on stream and the addition of its entire spot-trading fleet in the Pool, GMI’s interests will be more aligned with its shipowner clients.

Stuart Rae, GMI’s other co-founder, added “Although we’ve been seeing a lot of activity in the Supramax/Ultramax segment, a serious Panamax Pool has not materialized. We think the combination of GMI’s trading track record and the fact that the business is now more driven by asset optimization, is really key”.

The GMI Panamax Pool began operations in April, seeded by GMI’s own Panamax/Kamsarmax ships and already has nine ships signed up and has received letters of intent from further third-party owners.  Discussions are ongoing with a significant number of other shipowners, with a goal to reach 30 vessels by the end of 2015 and a further 30 in 2016. With a minimum period of 12 months, continuous geographic risk monitoring, and the opportunity to convert spot exposure to a fixed rate from day one, the GMI Panamax Pool offers shipowners a strong opportunity to maximize returns on their fleets.

  

Stuart Rae said:  “Taking GMI’s track record as a proxy, the Pool’s mission will be to add real value to client owners’ earnings in a depressed market and to prepare these clients for an eventual recovery in the dry bulk market’’. Transparency, corporate governance and risk management of the highest standards are offered to the Pool members, in line with GMI’s established history of managing funds on behalf of blue chip institutional investors.”