DryShips seeks to buy larger vessels
Shipping company DryShips Inc is targeting larger vessels for acquisition and seeking to sell off older ones while demand for ships is so high, the company's top executive said.
"We're selling older vessels for a high price that we wouldn't be able to sell off in a down market," Chief Executive Officer George Economou told Reuters on the sidelines of a maritime conference in New York.
"We also want to get out of the smaller (vessel) sizes and stick with the larger classes," he added. "We're not happy with the smaller ones and think the larger classes make more economic sense for us."
The company is avoiding ordering new vessels and is instead looking for used ships as the sale price of a new bulk carrier is just too high, Economou said.
Dry bulk shipping rates have been pushed up and have remained higher for longer than their usual cycle by rising demand for bulk commodities like coal, iron ore, steel and cement from developing nations such as China and India.
Although he predicted strong, if volatile, shipping rates through the rest of the year, Economou said DryShips will look for opportunities to move from the spot market to long-term charters - revenues are fixed under charter - if freight rates were to fall significantly.
Athens, Greece-based DryShips has a fleet of 34 ships.
Last week DryShips announced it was buying two large ships built 1997 and 2000 and selling one large ship built in 1988 and one smaller Handymax class ship.
Economou said DryShips is not happy with the Handymax class and is looking to buy used Capesize ships, which is the largest class of dry bulk carrier.
"We're selling older vessels for a high price that we wouldn't be able to sell off in a down market," Chief Executive Officer George Economou told Reuters on the sidelines of a maritime conference in New York.
"We also want to get out of the smaller (vessel) sizes and stick with the larger classes," he added. "We're not happy with the smaller ones and think the larger classes make more economic sense for us."
The company is avoiding ordering new vessels and is instead looking for used ships as the sale price of a new bulk carrier is just too high, Economou said.
Dry bulk shipping rates have been pushed up and have remained higher for longer than their usual cycle by rising demand for bulk commodities like coal, iron ore, steel and cement from developing nations such as China and India.
Although he predicted strong, if volatile, shipping rates through the rest of the year, Economou said DryShips will look for opportunities to move from the spot market to long-term charters - revenues are fixed under charter - if freight rates were to fall significantly.
Athens, Greece-based DryShips has a fleet of 34 ships.
Last week DryShips announced it was buying two large ships built 1997 and 2000 and selling one large ship built in 1988 and one smaller Handymax class ship.
Economou said DryShips is not happy with the Handymax class and is looking to buy used Capesize ships, which is the largest class of dry bulk carrier.