Eastern Pacific Shipping (EPS) has purchased a secondhand capesize bulker, continuing an effort to refocus its dry bulk fleet on larger vessels, while shedding smaller tonnage.

A source familiar with the deal said the Singapore company bought the 180,200-dwt Graceful Madonna (built 2010) from Japanese tonnage supplier Doun Kisen for $20m. It was constructed at Imabari Shipbuilding.

“Graceful Madonna is a good vessel built by a Japanese shipyard. The acquisition of the capesize bulker is in line with the company’s strategy,” the source said.

TradeWinds understands that the Graceful Madonna will be joining EPS' 11 other large bulkers that are in the spot trade. It controls 14 capesizes, with some short-term contracts of affreightment with mining companies.

EPS declined to comment.

The company had refrained from buying vessels on the dry bulk sale-and-purchase market for four years.

Its last deal was in late 2016, when it acquired the 179,100-dwt Hanjin Cape Lambert (renamed Star Lyra, built 2009) for $18.9m from Hanjin Shipping. EPS sold the Hyundai Heavy Industries-built capesize six months later, in a $28m deal with Songa Bulk.

In no rush to sell

“EPS has not done much on the dry bulk side for quite a while, although it has been selling off some smaller bulker tonnage progressively over the past two years,” the source added.

Several of its owned bulkers, ranging from handysizes to ultramaxes, are said to be up for sale and are circulated in the S&P market by brokers. However, the company is not in a rush to sell them unless it receives the right offer.

TradeWinds reported in June that the shipowner was aiming to refocus its fleet, starting with the 61,100-dwt Divinegate (built 2019), bought by a Japanese company for $22.8m. In March, EPS sold the 53,500-dwt Bridgegate (built 2010) to an unnamed buyer for $10m.

“It is always EPS’ intention to focus on bigger ships,” the source said. “It has newcastlemax bulk carrier newbuildings on order.”

EPS booked a pair of dual-fuelled 209,000-dwt newbuildings with China’s Shanghai Waigaoqiao Shipbuilding last year. The vessels, costing around $68m each, are due for 2022 delivery.

EPS also sold the 265,000-dwt ore carrier Handan Steel (built 1994) last month to a green recycling yard in Bangladesh for $274 per ldt, or a total of $10.4m.

That leaves it with one VLOC, the 299,400-dwt Wugang Caifu (built 2012).

The diversified shipping company also owns gas carriers, oil tankers, containerships and car carriers. It has close to 130 ships on the water and 26 newbuildings under construction in South Korea, China and Japan.