February 2021 | What influences the value of security token? How do digital securities experience an increase in value? In the case of the Green Ship Token of the shipping company Vogemann, the development of charter rates is an important component. In other words: the price for which the ships are rented out by the brokerage. This is because the charter rates make a significant contribution to achieving the interest for the investors. But that’s not all: in addition to the 8 percent interest on the Green Ship Token, there is also profit sharing, which splits the profits in half between the investor and the shipping company.
So let’s take a look at the development of time charter rates in the handysize bulker segment, in which the Green Ship Token invests. Actually they have gone up massively in the past few months:
While charter rates for handysize bulkers were around 4,192 US dollars/day at the beginning of May 2020, they climbed steadily over the rest of the year and were at 11,980 US dollars/day at the beginning of January. The 12,000 US dollar mark was even cracked in January. From 5/5/2020 to 5/1/2021, that represents a 286 percent increase.*
The rally continues: Charter rates reach 10-year high in February
The US dollars 12,000 mark in January is just the beginning. On 22 February 2021, the Baltic Dry Index BHSI recorded a 10-year high of over 17,000 US dollars/day. And this despite January and February usually being weaker months.
Green Dolphins charter rates increase value significantly
The Green Dolphins are doing even better: The “Voge Sophie”, which was built for Vogemann and has already been in operation since January 2019, adds another 20 percent to the peak values. No wonder: Sophie and its sister ship “Sea Eagle,” also a newbuilding for Vogemann, are the only handysize bulkers in the world in their segment that already meet the International Maritime Organization’s requirements for reduced carbon emissions, which do not apply until 2029.With these handysize bulkers, Vogemann is almost ten years ahead of its time, both technically and ecologically.
The lead is clearly noticeable in the operating costs. The bulkers save 30 to 50 percent fuel compared to an average bulker in their class. Depending on the number of days at sea and oil prices, this results in annual
- Fuel savings of more than 1,500 tons,
- Fuel cost reductions of more than $600,000, and
- A reduction in carbon emissions of more than 3,000 tons.
As a result, charterers are willing to pay a higher charter – because they generally pay the operating costs themselves.
Strikingly, even in January, which is usually considered a rather weak month, there are immense increases. Average charter rates are 70 percent higher** than average January levels over the past five years.
Perfect outlook for the value of Vogemann shipping company’s security token
The Corona pandemic is apparently boosting the shipping industry at the moment, and in particular the bulker segment in which the Green Ship Token invests.
But how is this happening?
- Cargo volumes have been steadily increasing in the Handysize segment. Between June and December 2020 alone, by 7.8 percent compared to the previous five months. The growth was stronger than the usual upswing in the same periods in years prior to the pandemic.**
- Manufacturing new orders surge. The global industrial sector is stocking up its inventories accordingly. This is boosting demand, especially for handysize bulkers.**
- The flow of goods has changed. Freight demand growth was initially led by China. Then the rest of the world caught up. In recent months, Australia’s east coast has been stronger in grain exports than usual. For once, France did not lead European grain exports from, but Eastern European countries such as Lithuania, Latvia and Poland did. And Turkey’s increasing importance as a buyer of steel scrap has had an impact on the European use of Handysize bulkers.**
- Goods go from container to bulker. Corona has increased demand for household and consumer goods from Asia. But containers to transport goods from Asia to Europe are becoming scarce. German freight forwarders put the current backlog at several hundred thousand containers for China alone. As a result, the cost of containers is skyrocketing. And so some cargoes that were transported in containers in the meantime are now returning to bulkers. These include steel and forestry products** – classic bulker cargoes.
Conclusion: Handysize bulkers represent a particularly suitable investment segment. The current charter rates influence the value of the security token.
Secure your Vogemann Green Ship Token now and benefit from this Security Token Offering with 8 percent interest plus profit sharing.
*Source: Baltic Handysize Index (BHSI 38).