Belships Expands Its Newbuild Program

Belships announced has expanded its newbuild program with two new 64,000 dwt Ultramax bulk carriers scheduled for delivery in 2028.

The Norwegian-based company now has a total of 10 newbuilds under construction at Japanese shipyards with delivery between 2024 and 2028. All vessels are leased on time charter for a period of 7 to 10 years from delivery, with purchase options around current market levels. There is no obligation to purchase any of the vessels. Cash breakeven for the vessels upon delivery is about $14,250 per day on average.

Belships said it will be taking over new vessels while the orderbook and supply side in the dry bulk market approaches the lowest levels in decades.

“These newbuildings represent growth prospects for the company packaged with financing which solves the predicament of very long lead times for new ships without jeopardizing return on capital in the meantime. The acquisitions will also contribute to retaining a low and competitive cash break-even in the future as the fixed-cost structure for the newbuildings will blend with existing vessels with lower leverage or free of debt,” said Lars Christian Skarsgård, CEO of Belships ASA.