SDTR Marine joined the Baltic Exchange as a new Baltic member on 1 July 2020. Gao De Hui sits on the Baltic Asia Advisory Council (Dry) (BAAC).

 

Can you tell us more about your company?

SDTR is a Singapore-registered company, specialising in dry bulk cargo operations, comprehensive ship management services and shipping related investment solutions which are relied on and trusted by owners, charters and financial institutions all over the world. 

We concentrate on the Kamsarmax segment and currently operate a fleet of about 40 Kamsarmaxes, of which 14 are newly delivered bulk carriers. This allows us to have deep understanding of the upstream and downstream need of Kamsarmax operations, including the port and cargo operations.

With our expertise, we work closely with shipbuilders to improve their ship building, optimise operational efficiency, and become more cost effective and user friendly.

We shared our end-user insights and partnered with the Shanghai Merchant Ship Design and Research Institute (SDARI) to develop cutting-edge new vessel designs such as 85,000 dwt and the fourth generation Kamsarmaxes. We think that these are cutting edge and will soon become highly sought-after models.

The 85,000 dwt type that we jointly designed in 2019 has become increasingly popular for its ability to adapt to various cargoes, its shallow draft and eco bunker consumption.

 

Can you share with us some of the recent developments in your business?

This year, COVID-19 has brought unprecedented challenges to the industry. Fortunately, the pandemic has had minimal impact on SDTR. With our stringent risk and management control, we have been operating well. Since the initial stages of COVID-19, we have been hedging our positions and minimising our exposure against volatility with various measures including the use of Forward Freight Agreements (FFAs).

Crew change is another major crisis resulting from COVID-19. We have been taking very strict measures to avoid infection while caring for crew well-being as they have been stranded at sea. Crew change has been our No.1 priority. To prevent seafarer fatigue, we made the utmost effort to facilitate crew change. We went the extra mile and even chartered back some vessels from the current charters to enable the crew to come home in time and at the same time ensure vessel security. We are thankful that our clients are on the same page with us on the subject of crew change, and we have earned respect from the seafarers. 

One of the lessons learnt for everyone in the maritime industry this year is the importance of risk management – to have a strong balance sheet with sufficient cash flow. Although we are cautiously optimistic about 2021, it is still too early to predict and thus risk mitigation is essential to business operations. 

 

What made you join the Baltic Exchange?

My relationship with the Baltic Exchange can be traced back to many years ago when I started my first job as a futures trader. That’s how I became familiar with the Baltic Exchange. 

Baltic Exchange is highly regarded in the maritime industry in Asia. It is well-known for its membership representation, with experts from different maritime sectors. Many cargo owners and ship owners are also members. Baltic is very influential as the indices it produces are widely used in the industry.

 

What are some of the most important benefits you have enjoyed as a member so far / what are some of the benefits you are looking forward to?

Before I joined as a member of the Baltic Exchange, I had already been invited to share my views as it was promoting the use of FFA products. At SDTR, we have been trading FFA and oil futures to hedge our positions as this significantly helps in mitigating our risk and exposure during the pandemic. 

I believe that the Baltic Exchange still has room for improvement in response to members’ needs, in particular, by providing more practical and accurate market information, with more prominent industry data. Meanwhile, optimizing the current FFA products and offering a more diversified range of products and services will also be beneficial for Baltic members as well.

SDTR Marine is a relatively active dry bulk operator with extensive industry experience and I look forward to representing the voice of Asian maritime companies and contributing my thoughts and expertise.

 

How do you see Asia members’ presence in the Baltic Exchange? What are you looking forward as a member of the Baltic Asia Advisory Council?

From growing fleet size, ship building capabilities, financing services to ship management and operations, Asia is becoming more and more important to the maritime industry. However, Asian membership in the Baltic Exchange is still low.

With the increasing Asian influence in the maritime industry, we need a channel to share our thoughts and our expertise. With SDTR’s strong relationship and deep understanding of financiers, shipyards and cargo owners in Asia, we can help facilitate the understanding of Asian ship owners’ and charterers’ needs. I am also looking forward to helping other players in Asia to understand the functions and benefits of joining the Baltic Exchange.

As a member of the BAAC, I look forward to discussing the development of the Baltic indices and giving feedback on proposed changes and new products. 

 

Are there any upcoming plans that you would like to share with us?

SDTR will achieve key milestones, with 10 Kamsarmax newbuildings of 85,000 dwt each and 6 fourth generation Kamsarmax newbuildings of 82,000 dwt to be delivered in the next three years. Our new vessels meet EEDI2 (ship energy efficiency design index) standards and comply with International Maritime Organization (IMO) emission regulations. 

By then, our managed fleet will increase to 30 vessels by 2022. These ships are of bigger cargo capacity, have a shallower draught and higher fuel efficiency. We are also in talks on new projects and new builds, with a goal to expand our managed fleet to 40 vessels and operating fleet to 80 vessels, with a cargo volume reaching 30 million tons.

This year, we have also expanded our services to leading financial institutions in providing bare-boat charterer services and managing the assets for them. 

Meanwhile, sustainability is always one of our key areas of focus and corporate values. We strive to create a better and greener environment for future generations. Hence, we are committed to building and chartering the newest, high fuel-efficiency and low emission eco-friendly fleet with constant fleet renewal.