New York-listed Pangaea Logistics Solutions has struck a tentative agreement to part with a supramax bulker that is the oldest vessel in its fleet.

The Newport, Rhode Island-based shipowner and operator has signed a memorandum of agreement to deal a vessel bearing the name of its home city for about $9.3m, according to brokers and market sources.

The sale of the 52,600-dwt Newport Bulk (built 2003) to unidentified buyers has not been completed and Pangaea representatives declined to comment on Monday.

The disposal is in keeping with Pangaea’s campaign to reduce its average fleet age and is not a surprise as the Toyohashi-built bulker is coming up on a special survey.

Indeed the sale prospects were discussed in Pangaea's last quarterly earnings call in November as company executives were quizzed by Poe Fratt, shipping analyst for Alliance Global Partners.

“You have the Newport coming up in the first quarter of 2023 with a survey. Is that a potential sales candidate?” Fratt asked.

Pangaea chief executive officer Mark Filanowski confirmed that it was.

“When it comes to reinvesting in the ship of that age, we always ask ourselves twice — at least twice — whether that’s something we want to do, whether it makes sense going forward, especially looking forward at some kind of new propulsion that will become available,” Filanowski said.

“Rather than investing in an older ship, maybe we should hold our cash on hand and wait for the chips start to fall in terms of what will be the ship of the future or maybe just a more efficient ship, more eco ship that we’d be able to trade a little bit longer.”

The disposal would bring Pangaea back down to 24 owned bulkers, although it also maintains a large chartered-in fleet that can reach about 30 vessels.

Pangaea’s most recent acquisition last year was another supramax, the 55,600-dwt Bulk Sachuest (built 2010).

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Filanowski at the time addressed the prospect of further additions.

“In terms of investments we see going forward, I think we see a little bit of market weakness in the forecast. At least FFA rates are pretty low for 2023,” he said, referring to forward freight agreements.

“I think we’ll sit and wait and look at the market, see which way the S&P values go. And if we see an opportunity, we’ve got some cash on hand, we’ll maybe pick up a ship or two, depending on where the market is.”