Mercuria's Capesize Buying Spree Approaches 1.5 Million DWT
A 2011-built newcastlemax bought from Eastern Pacific is the trader's fifth cape since September
Geneva-headquartered Mercuria has kept European buyers in the bidding for capesize tonnage this year, and its accumulated purchases in the segment are now approaching 1.5m dwt of carrying capacity.
While Chinese buyers have concentrated on vintage tonnage, the commodities trader has been taking slightly younger ships. In the space of a couple of years it has assembled a seven-ship capesize arm, quietly placing it among the most active European buyers in the sector.
Earlier this summer the trader paid around $88m for two former Rio Tinto newcastlemaxes, RTM Dampier and RTM Columbus, built in 2012 and 2013 respectively and since renamed Adamello and Cristallo. The latest ship linked to the group is the 2011-built, 180,000 dwt Mount Dampier, acquired from Idan Ofer-controlled Eastern Pacific Shipping for around $38m.
That purchase is the fifth cape Mercuria has taken since September, a run of buying that has continued through what is normally a quieter stretch of the year for secondhand dry bulk.
Traders buying tonnage rather than chartering it is a recurring pattern when freight is expected to stay firm and when cargo commitments run further out than the charter market will comfortably cover. Owning the ships fixes the freight cost against the physical position instead of leaving it exposed to the time charter market.
The buying is not confined to the secondhand market. Mercuria has been linked this year to a string of newbuilding orders in China covering newcastlemax and kamsarmax bulk carriers as well as aframax and LR2, suezmax and VLCC tankers, indicating a broader build-out of the group's shipping exposure rather than a dry bulk position alone.
