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Pacific Basin buying five bulker carriers for $104.6m

Pacific Basin buying five bulker carriers for $104.6m
Pacific Basin is spending $104.6m on five bulk carriers to renew and expand its fleet, as the company looks to position itself for a recovery of the dry bulk market.

The dry bulk shipowner entered into five separate contracts on Wednesday to buy three secondhand supramaxes, one secondhand handysize and one resale newbuilding supramax, all of which are Japanese-built vessels.

Of the total purchase price of $104.6m, $46.1m will be satisfied by the issue of vessel consideration shares and $58.5m in cash, Hong Kong-listed Pacific Basin announced.

The scheduled delivery of the secondhand ships is between mid-August 2017 and December 2017, and of the resale newbuilding in January 2018.

“While supply and demand factors remain uncertain, the dry bulk market is recovering and the board considers that these vessels can be purchased at attractive prices and that they will be beneficially employed within the group’s fleet for the long term after they are delivered,” Pacific Basin stated.

Three of the vessels, built at Tsuneishi Shipbuilding, are a pair of 2014-built 57,964-dwt supramaxes sold by Kaya Marine and Catherine Marine, and the resale newbuilding 63,700-dwt supramax sold by CPN Mundial Maritimo.

The remaining two vessels were built at Imabari Shipbuilding – the 2016-built 61,244-dwt supramax sold by Paraiso Shipping and the 2014-built 37,503-dwt handysize sold by San Clemente Shipping.

“The secondhand handysize vessel to be acquired is currently chartered and operated by the group under a long term chater agreed in 2010 and expiring in 2021, which will be terminated upon its delivery, and the vessel will become part of the owned fleet of the group,” Pacific Basin said.

“Four of the five vessels are supramaxes allowing the company to increase its relatively low proportion of owned versus chartered in supramax vessels.”

Pacific Basin last week reported a first half loss but it believes that “the worst of the current dry bulk market cycle is behind us.”