Scorpio Bulkers Buys More Capes

With only 79 bulk carriers currently under construction, Scorpio Bulkers decided today that a few more were needed for their growing fleet.

Five new Capesize bulkers were purchased today including four currently under construction at Daehan Shipbuilding in South Korea, and a new build order for an additional Capesize vessel from Sungdong Shipbuilding & Marine Engineering. Total cost of the order was around $306 million according to an emailed statement.

In addition, Scorpio won charter contracts for seven of their ships with terms as follows:

A 2011 built Post-Panamax for approximately 7 to 10 months at Company’s option at $13,500 per day. The vessel was delivered on March 24, 2014.
A 2009 built Kamsarmax for 11 to 13 months at Company’s option at $14,500 per day. The Company has the option to extend the charter for an additional 11 to 13 months at $15,500 per day. The vessel was delivered on March 8, 2014.
A 2012 built Kamsarmax for 39 to 44 months at Company’s option at $15,500 per day. The Company has the option to extend the charter for an additional 11 to 13 months at $16,300 per day. The vessel is expected to be delivered by the end of April 2014.
A 2004 built Panamax for a firm period of 32 to 38 months at $14,000 per day. The vessel is expected to be delivered by the end of June 2014.
A 2007 built Panamax for 11 to 13 months at Company’s option at $13,750 per day. The Company has the option to extend the charter for an additional 11 to 13 months at $14,750 per day. The vessel was delivered on March 15, 2014.
A 2011 built Supramax for 10 to 13 months at Company’s option at $13,750 per day. The vessel was delivered on March 18, 2014.
A 2002 built Handymax for 34 to 37 months at Company’s option at $12,000 per day. In addition the Company has the option to extend the charter for up to three consecutive one year periods at $12,750 per day, $13,600 per day and $14,800 per day, respectively. The vessel is expected to be delivered by the end of April 2014.

With overcapacity being a major factor in the pain felt by the dry bulk industry in recent years, there are many in the industry such as Jay Goodgal who express great skepticism at the economic fundamentals behind further tonnage growth within the large dry bulk shipping sector.