US bulker owner Pangaea Logistics Solutions has signed shipbuilding contracts with CSSC’s Guangzhou Shipyard International for the construction of two post-panamax 95,000 dwt dry bulk vessels.
The company also holds options to build two more vessels at the yard.
The two new ice class vessels will support a new ten-year contract Pangaea has secured from Baffinland Iron Mines Corporation.
“We work closely with all of our customers. Our relationship with Baffinland is special because of the extra challenges presented with high arctic shipping. The cargo contract, requiring the building of at least two new vessels with Ice Class 1A classification, marks a significant step forward in our leadership in the ice class part of our business,” said Ed Coll, CEO of Pangaea.
It is Pangaea’s first ever shipbuilding contract in China and the price for the new ships is approximately $38m each.
“The new ships, to be delivered in first half of 2021, will serve: our new ten year contract with Baffinland for summer service in the Canadian Arctic; existing customers who depend on our fleet capabilities in the Baltic Sea winters; and, old and new customers wishing to use the most modern ships to utilize expanding trade routes in high northern latitudes. The new ship design is a fuel efficient one, making it competitive with non-ice class vessels when not trading in ice, and the ships will comply with all Polar Code requirements for safety and environmental demands,” Coll added.