Ultrabulk Adding More "Eco-Design" Vessels to its Fleet

Ultrabulk is ordering new ships for Japanese and Chinese builders

Danish shipping firm Ultrabulk Shipping A/S (Ultrabulk) says it will add five vessels to its long-term fleet, including two new Eco-design vessels to be built in Japan.

The company will charter a Supramax bulker scheduled for delivery in 2016 and a Kamsarmax bulker that will be delivered in 2015, both of which are of a "new generation Eco type design," and come with an option to buy the vessels during their respective charters of up to 12 and 13 years.

Ultrabulk is also chartering an existing Kamsarmax bulker for seven years and expanding a contract with Oshima Shipbuilding Company of Japan from two to three Eco-type Handysize bulkers.

The company is buying the first two Handysize vessels and chartering the third, which is scheduled for delivery in 2015, for up to eight years with an option to buy.

"This is a natural development for our long term fleet renewal program that we started in 2012 when we contracted three firm units within the handysize segment," said Henrik Sleimann Petersen, executive vice president and head of ship holdings.

"There are still considerable challenges facing the dry bulk market in the years to come with a very sizeable order book, but we consider newbuilding contract prices have reached a level where we, with strong support from long term financial and commodity partners, have been able to continue our commitment to the long term market by adding additional units to our fleet."

Ultrabulk said it also entered into a 50-50 joint venture with Norwegian shipping fund Maritime Opportunities for the ownership of two Handysize bulkers that will be built at Samjin Shipbuilding in China.

Ultrabulk had already ordered one of the vessels in 2012, and, after agreeing to the joint venture, has taken its option to buy the second unit.

"Ultrabulk has always been open to joint-venture structures with both financial and commodity partners, but the conclusion of the joint venture with Maritime Opportunities is a first for us," said Per Von Appen, executive vice president and head of handysize.

"This does come as a natural development in the market where equity funds have renewed appetite to co-invest in the shipping sector… It's a good match with a strong equity partner who values our well established platform in the dry bulk market."

Ultrabulk has said its efforts to improve the fuel efficiency of its fleet helped it achieve a profit in 2012 despite a difficult market.