Dry Bulk Carriers Join Forces to Save Bunker Costs, Tackle "Competitive and Fragmented" Capesize Market

The move will benefit customers as well as the shipowners, said Star Bulk

Star Bulk Carriers Corp. (Star Bulk) Tuesday announced it is among five dry bulk carriers teaming up to form joint venture company Capesize Chartering Ltd. (Capesize Chartering), hoping the combined fleet can reduce bunker costs amongst others.

The new joint venture also includes Bocimar International NV, C Transport Holding Ltd. (CTM), Golden Union Shipping Co. S.A., and Golden Ocean Group Limited (Golden Ocean).

Capesize Chartering will coordinate the resources of its member companies which hope, in particular, to reduce bunker consumption and other costs associated with ballast voyages.

"Bunkers savings through improved planning of vessel movements and positioning also promotes the participating shipowners' combined efforts to promote CSR by reducing carbon emissions," said Star Bulk.

Star Bulk said the new company would be better equipt to deal with a "highly competitive and fragmented Capesize industry."

"[Presently] neither party owns, controls or manages sufficient Capesize vessels to provide competitively priced bids and efficient trading and operations to serve its customers."

"For the customers this represents the benefit of a wider geographic area in which vessels can be made available and with shorter spread between loading dates.

"For the shipowners the major benefit is achieving a reduction in costs, since always the best positioned vessel can be offered for a fixture of a cargo."

Capesize Chartering will begin operations in the second half of this month from the existing offices of its member companies.

In November, Star Bulk was reported to have saved up to 25 percent on bunker costs after placing an emphasis on eco-ships.