Paragon acquires new building ultramax dry bu
Paragon Shipping Company is one of the best known shipping firms in the world. It was incorporated under the laws of Marshall Islands with their headquarters in Athens Greece. They specialise in the transportation of dry bulk cargoes worldwide.
The company which has a fleet that consists of 13 dry bulk vessels that have a carrying capacity 816,472 dwt, has acquired two new buildings of Utramax dry bulk Carriers. The acquisition is to cost the company a total of $53 million. The new vessels which will have the capacity to hold 63,500 dwt each are under construction at Yangzhou Dayang ship building company and are expected to be completed by May 31 2014 and July 31 2014 respectively.
The announcement, that was made on October 3 2013 by the CEO, Michael Bodouroglou, comes at a time when the shipping industry is facing some difficulties especially on the European and Asian routes. The CEO said that the expansion in their fleet was in line with their strategy of conservative growth and that both vessels are designed to give them a competitive advantage in the industry.
His press release also expressed doubts, citing that the move was risky and the results could differ given different circumstances that could rock the shipping industry.
Some of the uncertainties include the economy of the world they serve, general market conditions, fluctuations in charter rates and vessel values, fluctuations of the demand for dry bulk shipping capacity, changes in operating cost, bunker prices, dry-docking and insurance costs, charter counterparty performance, availability of financing and refinancing, market for the vessels, governmental rules and changes in legislation that could alter their performance and general operations, liability from pending or future litigations, general domestic and international political conditions, potential disruption of shipping routes due to accidents and or political events etc.
In addition to the acquisition of the new vessels being built, Paragon Shipping program has a new handysize drybulk carrier that is scheduled to be delivered in the fourth quarter of 2013 2 48,00 TEU containerships and will be delivered in 2014 and acquired by Paragon Shipping affiliates, Box Ships Inc.
This is a bold move by the Paragon Shipping Company to expand their fleet due to the hardships that have rocked the shipping industry. With rates fluctuating to unprecedented levels, it would be hard to tell when the present market would be good for companies to expand their fleets.
The company which has a fleet that consists of 13 dry bulk vessels that have a carrying capacity 816,472 dwt, has acquired two new buildings of Utramax dry bulk Carriers. The acquisition is to cost the company a total of $53 million. The new vessels which will have the capacity to hold 63,500 dwt each are under construction at Yangzhou Dayang ship building company and are expected to be completed by May 31 2014 and July 31 2014 respectively.
The announcement, that was made on October 3 2013 by the CEO, Michael Bodouroglou, comes at a time when the shipping industry is facing some difficulties especially on the European and Asian routes. The CEO said that the expansion in their fleet was in line with their strategy of conservative growth and that both vessels are designed to give them a competitive advantage in the industry.
His press release also expressed doubts, citing that the move was risky and the results could differ given different circumstances that could rock the shipping industry.
Some of the uncertainties include the economy of the world they serve, general market conditions, fluctuations in charter rates and vessel values, fluctuations of the demand for dry bulk shipping capacity, changes in operating cost, bunker prices, dry-docking and insurance costs, charter counterparty performance, availability of financing and refinancing, market for the vessels, governmental rules and changes in legislation that could alter their performance and general operations, liability from pending or future litigations, general domestic and international political conditions, potential disruption of shipping routes due to accidents and or political events etc.
In addition to the acquisition of the new vessels being built, Paragon Shipping program has a new handysize drybulk carrier that is scheduled to be delivered in the fourth quarter of 2013 2 48,00 TEU containerships and will be delivered in 2014 and acquired by Paragon Shipping affiliates, Box Ships Inc.
This is a bold move by the Paragon Shipping Company to expand their fleet due to the hardships that have rocked the shipping industry. With rates fluctuating to unprecedented levels, it would be hard to tell when the present market would be good for companies to expand their fleets.