30-11-2022 Costamare confirms setting up new dry bulk operating platform, By Harry Papachristou, TradeWinds
Container and bulker player Costamare announced late on Tuesday the establishment of a new venture to operate dry bulk vessels. The US-listed company said in a statement it is willing to invest up to $200m in the outfit, which “will charter-in/out dry bulk vessels, enter into contracts of affreightment and utilize hedging solutions, including forward freight agreements and bunker hedging”.
TradeWinds understands that the figure mainly relates to amounts set aside to cover market volatility for the venture’s trading activities, or eventual purchase options for the ships it will charter in on a long-term basis. The establishment of the new venture is therefore understood to leave ownership and management of Costamare’s existing fleet of 45 bulkers unaffected. TradeWinds broke information about the new venture on 24 October, saying it will be set up largely by former staff of Oldendorff Carriers who left the German company to set up the scheme called Costamare Bulkers.
In its statement on 29 November Costamare didn’t reveal any information on the venture’s personnel other than to say that it consists of “a team of experienced professionals who will join Costamare in investing” in it. Costamare confirmed, however, that the platform will start business by the end of the year from offices in Athens and Monaco and that it will also operate through agencies in Copenhagen, Hamburg and Singapore.
The company said the new venture “is expected to employ minimal, if any, financial leverage” and that it provides “an attractive risk-reward profile” for the deployment of Costamare’s capital. No details were offered on the types of ships the new venture aims to employ. TradeWinds reported in October that it would focus on capesizes and panamaxes.
Costamare’s current bulker fleet, all acquired in a forceful secondhand buying campaign last year and employed in the spot market, mainly consists of supramaxes and handysizes. Costamare has currently no capesizes and owns just eight kamsarmaxes or panamaxes.
Costamare, also an owner of 73 container ships, said in a conference call on 2 November that it saw no reason to spin off its bulker fleet in current market conditions.