Eastern Pacific Shipping (EPS) has acquired two Chinese-built ore carriers from Cara Shipping as it continues to focus on large bulkers for its dry bulk fleet.
The transaction means the Singapore shipowner has purchased five sizeable ships from the secondhand market since July 2020.
Shipping sources in Singapore said the Idan Ofer-controlled company has bought the 250,000-dwt Stella Ivy (built 2015) and Stella Bella (built 2016).
It has paid between $58m and $60m for each ship.
They added that the two ore carriers are currently employed by mining giant BHP with the Stella Bella's charter contract expiring in 2026 and the Stella Ivy's in 2027.
"EPS will continue with the charter contracts," said a shipping source.
Officials at EPS and Cara declined to comment for this story.
EPS' purchase of the two ore carriers is in line with the company's focus on consolidating its diverse bulker fleet around capesizes or larger.
"EPS made the decision that it would focus on large bulkers when it started refocusing on the dry bulk segment two years ago," said a shipping source.
"It has expanded its bulker fleet with newbuildings and buying large secondhand vessels, and in the process sold ultramax and handysize bulk carriers."
The source said the company had 27 vessels in its fleet in 2019, and it now has 36, including newbuildings.
That growth came from ordering 13 dual-fuel newcastlemax bulkers at Chinese shipyards.
The company also purchased three capesizes — the 181,412-dwt Mount Logan (ex-Frontier Expedition, built 2013), the 176,820-dwt Mount K2 (ex-Frontier Falcon, built 2011) and the 180,242-dwt Mount Song (ex-Graceful Madonna, built 2010).
Shipping sources said that in the process of growing its large bulker fleet, EPS exited the ultramax segment after selling off seven vessels.
According to online database VesselsValue, the company also sold three handysize bulk carriers last year.
EPS' website shows the company's bulker fleet consists of a VLOC, a newcastlemax bulker, 16 capesizes, two panamaxes and a handysize bulker, in addition to the 13 newbuildings, which will run on LNG and conventional fuels.
Meanwhile, there are talks in the dry bulk market that Chinese-owned Cara is quitting the shipping industry, as it has been selling its ships "bit by bit". The Singapore-based company is the shipping arm of Rizhao Steel.
"We have heard that they [Cara] were told to get out of shipping by the top management so that the group company can focus on trading," said the shipping source.
On the other hand, Cara is said to be going "asset light" and is taking advantage of the rising bulker market to make some quick profit on the vessels.
