Company Report: Hellenic Carriers
Leading player in international shipping With a shipping heritage, it is no wonder Hellenic Carriers is in a position to expand its scope of services. We reveal how it has come to dominate the dry bulk cargo market

Hellenic Breeze

Hellenic Sea 1

Hellenic Sea 2

Fotini Karamanlis, CEO of Hellenic Carriers Limited, reveals that the company’s founders, family and affiliates have been involved in the shipping industry since the early 1950s. Shipping is part of their heritage, which certainly goes some way to explaining the subsequent success of Hellenic Carriers.

“This tradition is combined with the dynamism and forward looking approach of a younger generation,” Karamanlis says.

Hellenic Carriers is actually a related third party to Mantinia Shipping Company SA, which was founded in 1971 by the late Konstantinos Diamantis. When he passed away in 1998, he entrusted his family with the business and they subsequently expanded and diversified the maritime provider.

“In 2007, we decided to take Hellenic Carriers public and elected the Alternative Investment Market (AIM),” Karamanlis says.

EXPANDING THE FLEET
“Since our IPO in November 2007, we have expanded our fleet from four to six vessels,” she adds. Those six vessels include four Panamaxes, one Supramax and one Handymax.

“The vessels carry major bulk cargoes, such as coal, iron ore, and grain, as well as the minor bulk cargoes, such as steel products, alumina, bauxite, and phosphate, along worldwide shipping routes.”

Part of the company’s current strategy is the strengthening of its balance sheet. In line with this, it is also focusing on fleet renewal and expansion. This has seen the company recently enter into an agreement with an unaffiliated third party for the sale of one of the vessels owned by a subsidiary of Hellenic Carriers, according to Karamanlis.

“Second hand values have appreciated significantly since 2009, and we believe that the timing is right for the sale of an older vessel.”

She adds that the Panamax and Supramax vessels trade over a more extensive range of routes. In addition, both models transport a wider variety of cargo, thereby offering greater commercial flexibility, which is why the company is investing substantially in these units.

Karamanlis is keen to emphasise the importance of the company’s “stringent” safety management system – a crucial cog in Hellenic Carriers’ operations, in which the highest standards are maintained at all times. As such, it has an excellent track record. “Our safety management system examines every aspect of the company’s operations, whether on shore or at sea,” she says. “It monitors to ensure that all national and international regulations are met and that operations are conducted in a safe and environmentally conscious manner.

“The vessels were all built to high specifications in established, leading shipyards, mainly in Japan.”

Fleet ship personnel, including Crew and Officers, number about 150 today and are selected to work for Hellenic Shipmanagement because they are trained to the highest international standards and have years of experience behind them. It is likely that personnel numbers will increase in the not too distant future as the scope of the company’s operations expands.

OVERCOMING UNCERTAINTY
The proposed expansion comes shortly after the economic downturn that saw a substantial drop in earnings in the dry bulk shipping market from 2008 onwards.

“The markets recovered substantially in 2009 due to demand in the Far East and especially China, and, while this year the freight markets have remained volatile, freight rates are, on average, above 2009 levels,” Karamanlis explains of the “The markets recovered substantially in 2009 due to demand in the Far East and especially China, and, while this year the freight markets have remained volatile, freight rates are, on average, above 2009 levels,” Karamanlis explains of the current situation.

She admits that while the business has been far from unaffected by what she calls the “market movements”, it has been shielded from the volatility through its policy to secure long-term contracts for its fleet. This strategy has certainly paid off. “Despite the challenging conditions that prevailed in the global economy and the dry bulk shipping sector during the last two years, the company has remained profitable during the downturn and maintained dividend payments to its shareholders.”

But the whole industry has found ways to weather the storm. Increasingly, ship owners and managers are examining their operations more closely in a bid to streamline non-core operational and management costs.

“We successfully renegotiated the terms and extended the duration of some of our time charters and proactively worked together with our lenders to restructure debt,” Karamanlis says. This resulted in a build up of cash reserves and a fleet that can boast the generation of “strong and stable” cash flows.

So it would seem that Hellenic Carriers is in an ideal position to expand.

EXECUTING THE COMPANY STRATEGY
The shipping company would not have got where it is today though without the dedication of its employees, many of whom are family members, of course. “People are the driving force behind Hellenic Carriers,” Karamanlis states. “The cumulative skills and experience of the management team and our shipboard staff are essential to the successful execution of our company strategy.”

In other words, now more than ever, the workforce will be required in the implementation of Hellenic’s expansion. In turn, the company invests in its people through training and external courses. “Whether ashore or onboard, the people behind Hellenic are well equipped to meet the challenges of managing and operating an international shipping enterprise.”

Right now, its strategy is to “prudently grow the business and maintain profitability”, according to Karamanlis. “We believe that long-term demand for dry bulk commodities, particularly from the developing economies, will drive the business for years to come.”

Karamanlis’ belief in the company’s potential is unremitting. “With our efficiently run fleet, visible and stable cash flows, healthy balance sheet with strong liquidity, we are confident that we will continue building Hellenic Carriers into a leading player in the global dry bulk shipping industry.”

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