Gearbulk Integrated Report 2023 - Report - Page 50
GEARBULK
TOP 10
RISKS
OUR STRATEGIC PILLARS
ENABLE the green, blue and
DEVELOP our organization
circular economies
and human capital
TRANSFORM our business
SUSTAIN our business for
through innovation
the future
6 SUDDEN INDUSTRY COLLAPSE DEMAND
7 SUDDEN INDUSTRY COLLAPSE COST
Risk Description
Added capacity from planned new ship
buildings and normalisation of the existing
supply-demand imbalance due to expected
easing of supply chain congestion could lead
to a rapid collapse in Ocean freight rates.
Regulatory changes, customer demands,
and other industry demands hinder
ability of services to be rendered which
drive potential increase of costs due to
demand and due availability of such
goods and services in the market.
Impact on value
Sudden decrease in freight rates due to
supply demand has a severe impact on our
pro昀椀tability and enterprise value having a
direct impact on our liquidity and convenance requirements.
Sudden increase of cost due to demand
can have a severe impact on pro昀椀tability
of the organisation and has a direct
impact on the enterprise value.
Building an optimal cost base that is not
only competitive but also sustainable can
support margins that are required to reduce
the risk. Gearbulk together with our Joint
Ventures are to ensure that long terms
contracts secure source of income.
Building an optimal cost base that is not
only competitive but also sustainable
can support margins that are required
to reduce the risk.
The lower market rates could lead to
increased volumes the business can serve
and therefore enter into new trades not
served before. Furthermore, with lower
rates the organisation can take advantage
of lower prices on new buildings supporting
replacement of the 昀氀eet.
The risk stimulates opportunities for our
business to continuously innovate and
di昀昀erentiate ourselves by proactively
responding to the risk gaining reputational advantages and adapting our
strategies to incorporate initiatives to
support innovation and di昀昀erentiation.
Capitals impacted
Mitigation strategies
Strategic pilar
Opportunities
50
PART 2 – OUR BUSINESS IN CONTEXT
