Gearbulk Integrated Report 2023 - Report - Page 74
GEARBULK
OUR TRADE-OFF’S
BALANCING
OUR CHALLENGES
In the face of numerous challenges and uncertainties encountered in 2023, it was a necessity
to make tough decisions, navigating through
complexities to achieve our desired outcomes.
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 in 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
charter agreements. This decision is rooted in the strategic
of investing in vessels that might face limited returns amid
objective of mitigating additional 昀椀nancial exposure that could
potential shifts in demand and supply due to evolving tech-
arise from both supply and market volatility. By balancing
nologies. However, this strategic delay has rami昀椀cations for
growth ambitions and investment Gearbulk will safeguard
shipyard availability, incurring potential costs. Seeking alter-
its earning potential, ability to cover associated costs and
natives to meet the tonnage needs essential for the Joint
investment requirements.
Venture’s operation could be a costly endeavour. 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
