Nasdaq-listed Pangaea Logistics Solutions has taken an option to add another two vessels to its order for ice class post-panamax 95,000 dwt bulkers at Guangzhou Shipyard International (GSI), giving it a total of four vessels under construction at the yard.
The two additional vessels added will cost the company $37.7m each. Deliveries for the quartet are scheduled for April and May 2021, and two in November 2021.
Pangaea says it has signed a new deal to finance the ships via CSSC Shipping Company via a $129.2m bareboat charter structure. It will bareboat charter the vessels for 15 years using entities that are controlled by a new joint venture company formed between Pangaea and Hudson Structured Capital Management.
The four new ice class vessels, along with ten other ice class vessels in the company’s fleet, will support a new ten-year contract with Baffinland Iron Mines Corporation for the Arctic shipping season.
Ed Coll, CEO of Pangaea, commented: “We warmly welcome our new partners helping us expand our fleet. We are making excellent progress with GSI on completion of design and specifications on the two vessels ordered earlier this year, giving us confidence to order two more vessels to be built there. CSSC Shipping offered an attractive bareboat charter structure that demonstrates Pangaea’s ability to attract long term financial commitment. Hudson Structured joins us in a unique partnership because they share our vision for growth in niche trades and in our responsibility to utilize the best available assets in our businesses.”