Genco takes delivery of three 'fuel-efficient' ships

Bunker-saving vessels 'ideal' for long-haul trades, says shipper.

Image credit: Genco Shipping & Trading

Updated on 12 Sep 2018 07:37 GMT

Genco Shipping & Trading Ltd - a company that primarily transports dry bulk cargoes such as coal, iron ore, steel products, and grain along international routes - has confirmed that it has taken delivery of three 'fuel-efficient', 2016-built ships: the Capesize vessels Genco Defender and Genco Liberty, and the Ultramax Genco Columbia.

The 180,000-deadweight-tonne (dwt) Genco Defender and Genco Liberty are the two Capesize vessels that Genco agreed to acquire in July, whilst the 60,000-dwt Genco Columbia is the last of four vessels that Genco agreed to buy in June.

To fund the purchases, Genco says it utilized cash on hand and drew down an additional $56.25m under its new $108m credit facility, utilizing its full availability.

Commenting on the acquisitions made during the third quarter, Genco said: "All six acquisition vessels... are high specification, fuel-efficient vessels that are ideal for long haul trading patterns.

"The Company therefore plans to strategically reposition the vessels from their delivery ports in the Far East to Atlantic positions to benefit from a potential freight rate increase in the fourth quarter of 2018."

Genco also announced that it anticipates delivering the Genco Progress - a 1999-built Handysize vessel - to its buyers on or about September 12, and that it has entered into an agreement for the sale of the Genco Cavalier - a 2007-built, 53,617-dwt Supramax vessel - as part of its fleet renewal program.

The aggregate sale price for the Genco Cavalier is $10m, and it is expected to be delivered to its buyer during the fourth quarter of 2018.

John C. Wobensmith, chief executive officer, remarked: "The timely acquisition of these modern, high specification drybulk vessels, combined with our success selling older tonnage, has enhanced Genco's position for capitalizing on strong demand for drybulk commodities and multi-decade low vessel supply growth rates. The earnings environment for the Capesize and Ultramax sectors remains favorable, and we are pleased to have increased the size of our fleet and improved its overall age profile and earnings capacity during the seasonally stronger second half of the year."