Shipping Hedge Fund Leases Vessel at a Loss as Australia Floods Sap Cargo

M2M Management Ltd., a hedge-fund group, is leasing out a ship at loss to get the vessel out of the Pacific region, where demand has been decimated by Queensland’s worst flooding in a half century.
The capesize, three times the length of a football pitch, is carrying coal to the Atlantic region, where there should be more cargoes, Steve Rodley, London-based joint managing director of M2M, said by phone today. While M2M is paying the charterer to hire the ship, the customer will pay most of the fuel costs, he said. That’s cheaper than M2M sailing the vessel empty.
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Source: Bloomberg