Bayraktar Shipping

Business Strategy

Renewing and Expanding Our Fleet

We expect to grow our fleet in a disciplined manner through timely and selective acquisitions of quality vessels. We perform in-depth technical review and financial analysis of each potential acquisition and only purchase vessels if the market conditions and developments are convenient for our company’s best interest. We are initially focused on purchasing well-maintained, second-hand vessels, which should provide a significant value proposition according to the given charter rates. However, we also consider purchasing younger vessels or new buildings if the value proposition exists at the time. 

Maintaining Balanced Employment

We intend to strategically employ our fleet between period and spot charters. We actively pursue period charters to obtain adequate cash flow to cover our fleet's fixed costs, consisting of vessel operating expenses, management fees, general and administrative expenses, interest expense and dry-docking costs for the upcoming 12-month period. We look to deploy the remainder of our fleet through period charters, spot charters, or contracts of affreightment depending on our view of the direction of the markets and other tactical or strategic considerations. We believe this balanced employment strategy will provide us with more predictable operating cash flows and sufficient downside protection, while allowing us to participate in the potential upside of the spot market during periods of rising charter rates

Operating a Fleet in Three Sectors

 

While remaining focused on the dry cargo segment of the shipping industry, we intend to continue to develop a diversified fleet of drybulk carriers and container ships of up to 2500 teu size. A diversified dry bulk fleet profile will allow us to better serve our customers in both major and minor bulk trades, as well as to reduce any dependency on any one cargo, trade route or customer.

 

We will remain focused on the smaller size ship segment of the container and minibulker market, which has not experienced the same level of expansion in vessel supply that has occurred with larger container ships.

 

A diversified fleet, in addition to enhancing the stability of our cash flows, will also help us to reduce our exposure to unfavorable developments and to benefit from upswings in shipping sector experiencing rising charter rates. 

Targeting balanced and profitable long-term growth

Bayraktar’ strategic objective is to achieve balanced and profitable long-term growth for itself and its principals. To accomplish this target, the company’s strategic plan is focused on undertaking a number of key initiatives over the next years that will allow us to outperform our competitors irrespective of market conditions.

We aim to add value to our principals through managing all aspects of their vessels, from technical management and crewing to chartering and voyage execution, with an unrelenting focus on operational excellence. We leverage analytics to make better business decisions, and rigorously apply this approach across the company. We are committed to pursuing innovative technology to drive commercial benefits.