The Stellar Daisy loss is set to hasten Polaris Shipping’s fleet renewal programme but could also delay a planned flotation and move into the tanker market.
Industry players believe that the Korean shipowner will now bring forward a planned order for at least 10 very large ore carrier (VLOC) newbuildings at Hyundai Heavy Industries (HHI). Polaris controls 18 converted ore carriers that were built between 1990 and 1995 that it has plans to replace.
TradeWinds is told that Polaris is close to concluding the renewal of contracts of affreightment with Vale for transporting iron ore from Brazil to China.
“They have already worked out the number of newbuildings that will be needed,” said one shipping source. “We think the signing of the newbuildings contract may take place over the next few months."
However, Polaris’ plan to list on the Korea Stock Exchange and its debut in the tanker segment may take a hit due to the VLOC loss.
Polaris has been working on the listing since the middle of last year and employed Mirae Asset Daewoo as the underwriter.
Damage to sentiment
But observers believe the loss of the Stellar Daisy could damage the image of the local shipping industry and have a negative impact on sentiment ahead of the flotation.
“The current market sentiment is South Korea is not so good because of the recovery of the wreck of the Sewol and the arrest of the ousted president Park Geun-hye,” said one Korean source. “The disappearance of the Stellar Daisy will put further strain on the local shipping industry.”
Bulker-owner Polaris recently formed a tanker division and hired three new staff. TradeWinds is told that the company is still reviewing which ship type it should be operating, even though it has two aframax tankers under construction at Daehan Shipbuilding. The duo, which are due for delivery early next year, were originally ordered as newcastlemax bulkers.
