Pangaea Logistics Orders Two More Ice Class Ships, Agrees Long-Term Financing

U.S.-based shipping company Pangaea Logistics Solutions has added two more high ice class Post-Panamax dry bulk vessels to its orderbook at Guangzhou Shipyard International (GSI).

To feature 95,000 dwt, the latest vessels will be designed with Ice Class 1A specifications and will cost the company USD 37.7 million each.

With this order, Pangaea Logistics Solutions now has four ships under construction at GSI, two of which are scheduled for delivery in April and May 2021, while the remaining two would join the fleet in November 2021, respectively. The company said that the units will be used to service Pangaea’s Arctic customer base.

Additionally, the company secured a series of committed transactions to finance the ships through a USD 129.2 million bareboat charter structure. On delivery, each of the ships will be sold to subsidiaries of the Hong Kong-listed ship leasing firm, CSSC Shipping Company Limited.

The bulkers will be bareboat chartered for 15 years to entities that are controlled by a new joint venture company formed between Pangaea and Hudson Structured Capital Management Ltd.

Pangaea’s Nordic Bulk Carriers has signed a 10-year contract with a major customer to utilize its ice class fleet, including the four Post-Panamaxes, in the Arctic shipping season and will operate the new ships alongside its existing ice class fleet of ten ships.

“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,” Ed Coll, Pangaea’s Chief Executive Officer, said.

“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,” Coll added.