Grieg Star Declares Option to Build Two Supramax Bulkers

Grieg Star declared its option to build two more supramax dry bulk vessels. The vessels are the last two ships of a series of four, based on a building contract entered into with Yangzhou Dayang Shipbuilding in China in June.

During 2012, Grieg Star took delivery of two 58,000 dwt. supramax newbuildings, also from Dayang. The existing order, consisting of four ships to be delivered during 2015, is for 63,500 dwt. super-eco design supramax vessels, the most fuel-efficient vessel of this type available.

Grieg Star has been engaged in the operation of conventional dry bulk handymax/supramax vessels since the 1970-ies. With primarily a background as an operator in the segment, Grieg Star’s dry bulk operation has delivered positive results for the last consecutive thirty years of operation. The capability to combine the timing of hiring vessels on long and short term charters and entering into cargo transportation contracts for various dry bulk commodities, combined with a conservative risk profile, proves that it is possible to be consistently profitable in cyclical shipping markets.

“Adding owned vessels to our operation, is part of a strategic decision to strengthen and expanding this part of Grieg Star’s shipping activities as well as taking advantage of a weak shipping market,” Grieg Star said in a press release.

The supramax newbuilding program is considered a good fit with the group’s existing portfolio of strategic long term cargo contracts and chartered eco-design vessels on long term time charter with purchase options. Altogether, this gives Grieg Star an opportunistic and flexible market position for the future.

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Grieg Star, September 24, 2013