Genco focused on crew safety as losses widen

US-based dry bulk owner Genco has supplied its crew with the necessary equipment to combat risks associated with coronavirus. It sold two vessels in the first quarter and signed agreements to offload three more after suffering a heavy loss

GENCO Shipping & Trading, a US-based dry bulk owner, has taken measures to safeguard its crew amid the coronavirus pandemic.

Its crew members have received gloves, face masks, hand sanitisers, goggles and handheld thermometers, the company said in a statement. It has also limited shore personnel from visiting its ships.

In addition, precautionary measures are posted in common areas to supplement safety training, while personal hygiene practices are “strongly encouraged” on board.

“We have implemented industry leading protocols with regard to crew rotations to keep our crew members safe and healthy which includes polymerase chain reaction (PCR) testing as well as a 14-day quarantine period prior to boarding a vessel,” the company said, adding that it was enacting crew changes where permissible by national governments.

“While the overall impact of Covid-19 on our business remains uncertain, we maintain our favourable medium- to long-term outlook of the dry bulk market given the historically low orderbook, which bodes well for containing fleet growth in the coming years,” Genco's chief executive John Wobensmith said in the statement.

He said that economic activity in China has improved over the last two months, which was “a positive step”.

“While output in other regions around the world has slowed meaningfully due to nationwide closures, we remain hopeful that when these countries begin to gradually restart economic activity that will lead to increased demand for the raw materials that we transport.”

The company posted a net loss of $120m in the first quarter from a loss of almost $8m in the year-earlier period. Despite the heavy loss, it declared a dividend and is in talks with its existing lenders for a $25m revolving credit facility to bolster its cash position.

It sold two vessels in the first quarter and signed memorandums of understanding for the disposal of three more handysizes built between 2009 and 2010 for aggregate gross proceeds of $23.6m. The vessels will be delivered to the buyers over this quarter and next.