Grieg Star builds on long term track record within dry bulk

Bergen, 24 September 2013

Grieg Star declares its option to build two more supramax dry bulk vessels. The vessels are the last two ships of a series of four, based on a building contract entered into with Yangzhou Dayang Shipbuilding in China in June.

During 2012, Grieg Star took delivery of two 58,000 dwt. supramax newbuildings, also from Dayang. The existing order, consisting of four ships to be delivered during 2015, is for 63,500 dwt. super-eco design supramax vessels, the most fuel-efficient vessel of this type available.

Grieg Star has been engaged in the operation of conventional dry bulk handymax/supramax vessels since the 1970-ies. With primarily a background as an operator in the segment, Grieg Star’s dry bulk operation has delivered positive results for the last consecutive thirty years of operation. The capability to combine the timing of hiring vessels on long and short term charters and entering into cargo transportation contracts for various dry bulk commodities, combined with a conservative risk profile, proves that it is possible to be consistently profitable in cyclical shipping markets.

Adding owned vessels to our operation, is part of a strategic decision to strengthen and expanding this part of Grieg Star’s shipping activities as well as taking advantage of a weak shipping market.

The supramax newbuilding program is considered a good fit with the group’s existing portfolio of strategic long term cargo contracts and chartered eco-design vessels on long term time charter with purchase options. Altogether, this gives Grieg Star an opportunistic and flexible market position for the future.

Grieg Star is a fully integrated shipping group and owner of one of the world’s largest open hatch fleets operating about 35 vessels employed in international transport of forestry products and other parcel cargo trades. The open hatch vessels are specially designed to transport pulp, forestry products and dry bulk parcel cargoes such steel and fertiliser, as well as a variety of different types of project cargoes such as windmill towers and rail cars. The group’s operation of conventional geared and grab-supplied dry bulk handymax/supramax vessels, having an annual activity level of about 15 vessels, carries a variety of dry bulk commodities such as salt, sugar, limestone and coal. The group also owns and manages a financial investment portfolio, which follows a traditional asset allocation model given a long term investment horizon. Operating worldwide, Grieg Star has offices in USA, Canada, Europe, Far East and South America, in addition to its headquarters in Norway.

Grieg Group press release