Gearbulk IntegratedReport 2024 Paperturn - Flipbook - Page 74
GEARBULK
OUR TRADE-OFF’S
BALANCING
OUR CHALLENGES
Signi昀椀cant challenges continued to present themselves in 2024. By carefully assessing trade-o昀昀s,
we navigated complexities and achieved our
desired outcomes, balancing short-term needs
with long-term sustainability.
Balancing our investment in 昀氀eet with delay of new builds
Balancing our joint ventures growth ambitions with limi-
Our most recent vessel addition before 2023 was in November
tation on expansion
2015, and since then, no commitment has been made to a
The growth aspirations of our Joint Ventures in their existing
subsequent New Build program for vessels to replace old
sectors, aimed at diversifying potential income streams, have
vessels that will exit the 昀氀eet the coming years. The recent
prompted the choice to engage in short-term charters instead
strategic choice to defer New Builds was driven by ongoing
of Gearbulk as owner committing to further long-term time
research into emerging technologies and the perceived risk of
charter agreements. This decision is rooted in the strategic
investing in vessels that might face limited returns amid poten-
objective of mitigating additional 昀椀nancial exposure that could
tial shifts in demand and supply due to evolving technologies.
arise from both supply and market volatility. By balancing
However, this strategic delay has rami昀椀cations for shipyard
growth ambitions and investment Gearbulk will safeguard
availability, incurring potential costs. Seeking alternatives to
its earning potential, ability to cover associated costs and
meet the tonnage needs essential for the Joint Venture’s oper-
investment requirements.
ation requires a signi昀椀cant investment from the company.
Gearbulk however acquired 15 second hand vessels during
2023 to limit risk of increased costs. This trade-o昀昀, while aligned
with our long-term sustainability objectives, underscores the
challenges inherent in balancing technological innovation and
operational considerations within the maritime industry.
Capitals Impacted
Capitals Impacted
Financial
Capital
74
Manufactured
Capital
PART 3 – OUR STRATEGIC RESPONSE
Financial
Capital
Manufactured
Capital
