Bloomberg reported that Pacific Basin Shipping Ltd, Hong Kong largest operator of commodity vessels, may make acquisitions in the H2 of next year as a flood of new ships depresses vessel prices.

Mr Richard Hext CEO of Pacific Basin Shipping Ltd said the introduction of more vessels also means once that tonnage is on the water, we will see some opportunities coming up. He said that it’s more likely that freight rates are going to go down than up.

Hext added that the company has net cash of about USD 300 million after raising HKD 761.8 million selling new shares in May to fund possible deals. Pacific Basin wants to take advantage of slumping vessel prices to expand its fleet as China economic growth spurs demand for iron ore and other commodities.

Mr Richard Hext said “For the medium to long term, we are bullish about China because of the continued urbanization and industrialization. China steel demand will continue to be strong, but it will be a bumpy ride along the way.”

The shipping line fell 0.7% to HKD 5.56 at in Hong Kong trading. It gained 58% this year.

(Sourced from Bloomberg)