Western Bulk Charters Two Newbuilds

Western Bulk’s Shipholding division has agreed to enter into two additional Japanese lease time charter contracts with attractive extension and purchase options. Both vessels are Ultramax Eco-design from Japan with favorable delivery timing, having the following details:

• Vessel 1: 61,000 dwt with commencement of the charter when delivered from the yard in 2015. The charter is for minimum 7.5 years and up to 10 years duration with annual purchase options for Western Bulk from year 4.
•  Vessel 2: 60,000 dwt with commencement of the charter when delivered from the yard in 2016. The charter is for minimum 8 years and up to 11 years duration with annual purchase options for Western Bulk from year 5.

“Adding these high-quality vessels to WB Shipholding’s fleet underpins our amitions and strengthen our relationships in Japan by securing the best vessels available. In a market where newbuilding prices are increasing, we are very pleased to have concluded these contracts at similar terms as we have done earlier this year,” says Jens Ismar, Chief Executive Officer of Western Bulk.

With these two vessels, WB Shipholding has a fleet of 25 vessels and newbuildings, of which 4 vessels are partly owned, 5 vessels and 16 Eco-newbuildings are chartered in with extension and purchase options. The chartered-in vessels with purchase options are chartered at attactive rate levels. The last 14 contracts concluded since beginning of 2012 (including the contracts above) are all Supra- and Ultramaxes with an average rate per vessel of approximately USD 13,000/day for the firm charter period. Contracts with purchase options effectively give WB Shipholding an attractive and fully leveraged exposure towards a potential future rebound in vessel values.

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Press Release, November 1, 2013