Thursday, July 21, 2011

Dry Bulk Freight Shipping Line Takes Delivery Of New Build Vessel

Genco Buy Another Handysize Ship
Shipping News Feature

WORLDWIDE – With the Baltic Dry Index bumbling along at the 1300 to 1450 mark over the past month comes the news that dry bulk freight carrier Genco Shipping & Trading Limited continue its acquisition policy and is taking delivery of the Genco Mare, a 35,000 dwt Handysize new build. The Genco Mare is the fourth of five vessels to be delivered to the Company under Genco's agreement previously announced on the 9th June last year to acquire five Handysize freight vessels from companies within the Metrostar group of companies.

Genco has already placed the vessel and the Genco Mare is expected to be delivered to its charterer, Cargill International S.A. today to commence a spot market-related time charter for 45.5 to 50.5 months. The rate for the spot market-related time charter will be based on 115% of the average of the daily rates of the Baltic Handysize Index (BHSI), as reflected in daily reports. Hire will be paid every 15 days in advance, net of a 5.00% third party brokerage commission.

Genco says it has funded this latest purchase using a cash payment of $9.9 million bolstered by $20.0 million from its $100 million term loan facility which represents final payment for the ship. Genco now owns a fleet of fifty two drybulk vessels (plus one more Handysize which it has agreed to purchase still outstanding) with a combined dead weight tonnage exceeding 3.8 million tonnes.