Rickmers Maritime uses cash to navigate choppy waters

Faced with a rapidly rising loan-to-valuation ratio, Rickmers Maritime CFO Quah Ban Huat increased cash by nearly 1,000% until he could renegotiate the terms of the company’s loans.

Rickmers Maritime uses cash to navigate choppy waters
Quah Ban Huat

The shipping industry has been hammered. 

The 250-year old Baltic Dry Index, a measure of global dry bulk shipping rates, dropped 94% to 663 points in the six-month period following May 2008 when it hit an all-time high of 11,793 points. Shippers far and wide saw charter rates, and by extension ship values, drop precipitously. This was the case at Singapore-based shipping trust Rickmers Maritime.

Even though our vessels are on long-term fixed-rate charters with reliable, consistent...

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