Singapore's Pioneer Marine Receives Second Newbuild Eco Bulker

Pankaj Khanna, CEO of Pioneer Marine, says the delivery of its second eco-design newbuilding comes at a "very challenging time."

Pioneer Marine Inc. (Pioneer Marine) has announced the delivery of its second Green Dolphin eco-design vessel, the 38,500 DWT M.V. Kite Bay

The ship is said to have a fuel consumption that is approximately 6 tonnes per day lower than equivalent non-eco design vessels, and is said to be equipped with commercial flexibility features, including Ice Class 1C strengthened hull, and mass flow meters on the bunker line, among others.

"Delivery of our second Green Dolphin newbuilding comes at a very challenging time for the drybulk industry as freight rates to day are $4,000 per day or below for all vessel sizes, and that is if you can achieve index after including idle time," said Pankaj Khanna, CEO of Pioneer Marine.

"Pioneer continues to earn a premium over index, but when the index is this low it is of little consolation."

The addition of Kite Bay brings Pioneer Marine's operating fleet to 14 handysize ships and one handymax vessel.

Pioneer Marine says the Kite Bay will start a one year charter, subject to a floating rate based on the Baltic Supramax Index "less a small discount."

The charterer has the option to extend the charter period for up to one additional year.

"Pioneer had contracted twelve newbuilds of which three have been cancelled without penalty and two vessels have delivered. The seven remaining newbuildings are scheduled to be delivered in 2016 (four) and 2017 (three)," added Khanna.

"We continue to work with our shipyard to seek possible solutions given the unprecedented market conditions."

In February, automation group ABB announced it would supply fuel monitoring technology for installation aboard ships being built for Pioneer Marine, with the aim of reducing bunker consumption.