Genco Shipping reveals Capesize buy in a fleet revamp

U.S. headquartered drybulk shipowner Genco Shipping & Trading sealed an agreement to acquire a 2016-built 181,000 dwt scrubber-fitted Capesize vessel for $43.1m.

The vessel is constructed at SWS shipyard in China in October this year and is to be renamed Genco Ranger. It is also expected to be delivered to Genco in mid-November 2023.

The top management of the company said it continues to further evaluate fleet renewal and growth opportunities in the sale and purchase market.

In addition to acquisitions that Genco may undertake, the company will incur additional capital expenditures due to special surveys and drydocking’s.

Furthermore, it plans to upgrade a portion of its fleet with energy saving devices, and apply high performance paint systems to its vessels, in order to reduce fuel consumption and emissions.

John C. Wobensmith, chief executive officer, commented, “We continued to advance our value strategy in the third quarter, delivering on our commitments to dividends, deleveraging, and growth. In addition to declaring our 17th consecutive dividend, we capitalized on an attractive opportunity to acquire a 2016-built scrubber-fitted Capesize vessel.”

Beginning in September, the drybulk owner saw a significant uplift in drybulk freight rates, led by firm iron ore, coal and bauxite shipments.

Looking ahead, the company expects commodity demand growth from China and developing Asia, despite the fact that volatility will persist.

Genco’s fleet of 44 vessels consists of 17 capesizes, 15 ultramaxes and 12 supramaxes.

The fleet’s average age is 11.7 years and has an aggregate capacity of about 4,635,000 dwt. The company plans to take delivery of the Genco Ranger, a 181,000 dwt scrubber-fitted Capesize vessel in mid-November 2023.