Pangaea Logistics Solutionsexpanded its order for high ice class post-panamax dry bulk 95,000 dwt. vessels at Guangzhou Shipyard International (GSI) from two to four vessels.
The four ships, two for delivery in April and May 2021 and two for delivery in November 2021, will be used to service Pangaea's Arctic customer base. The two added ships, also designed with Ice Class 1A specifications, will cost $37.7 million each.
Pangaea also announced a series of committed transactions to finance the ships through a $129.2 million bareboat charter structure. On delivery, each of the ships will be sold to subsidiaries of CSSC Shipping Company Limited, a leading ship leasing company listed on the Hong Kong Exchange.
The ships will be bareboat chartered for 15 years to entities that are controlled by a new joint venture company formed between Pangaea and Hudson Structured Capital Management Ltd., a Stamford, Connecticut based asset manager focused on alternative investments.
Pangaea's Nordic Bulk Carriers has signed a ten year contract with a major customer to utilize its ice-class fleet, including the four post-panamaxes, in the Arctic shipping season and will operate the new ships alongside its existing ice class fleet of ten ships.
"We are solidifying an important niche in our business portfolio by building four ships at GSI to meet our customers' cargo needs," said Ed Coll, Pangaea's Chief Executive Officer.
"We warmly welcome our new partners helping us expand our fleet. We are making excellent progress with GSI on completion of design and specifications on the two vessels ordered earlier this year, giving us confidence to order two more vessels to be built there. CSSC Shipping offered an attractive bareboat charter structure that demonstrates Pangaea's ability to attract long term financial commitment. Hudson Structured joins us in a unique partnership because they share our vision for growth in niche trades and in our responsibility to utilize the best available assets in our businesses," added Coll.