Paragon Shipping Buy New Panamax Bulk Carrier

GREECE - Bulk vessel operator Paragon Shipping has announced that they are to acquire another Panamax-class bulk carrier. The ship, to be named Dream Seas, is rated as having a carrying capacity of 75,151 dwt and delivery is expected to take place in either June or July this year. Paragon state that they are to pay $41 million for the ship.

Paragon has also announced that the vessel has already been entered into a charter agreement with Intermare Transport GMBH, a leading German based commodities trading house, for a minimum 35 months and maximum 37 months at a gross daily time charter rate of $20,000.

Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, said that: “In the context of our fleet expansion and renewal strategy, the acquisition of the Dream Seas generates significant benefits to Paragon. It expands our Panamax fleet to eight vessels and our total fleet to 12 dry bulk carriers. It will also reduce the average age of our overall fleet to 7.5 years and our Panamax vessels to 6.7 years, well below the industry average.

“Furthermore, the period charter agreement with Intermare, is expected to generate gross revenues of $21 million for the three year employment of the vessel, enabling us to realize a significant portion of our investment in a short period of time.

Mr. Bodouroglou also said that the purchase would be the first of a concerted effort by Paragon Shipping to expand the company’s fleet, adding that: “We expect "Dream Seas" to be the first of a number of ships to be added to the Paragon fleet over the next two years.

“With sufficient liquidity to double the size of our fleet, we continue to explore the market for other high quality second hand and new building vessels that we expect to enhance cash flow and growth to our Company and provide long term shareholder value.”

Meanwhile New York based Genco Shipping and Trading have announced that it has reached an agreement to extend the time charter for the Genco Knight, a 1999-built Panamax vessel, with Swissmarine Services S.A. for approximately 11 to 13.5 months at a rate of $25,000 per day, less a 5% third-party brokerage commission.

The time charter is expected to commence following the expiration of the vessel's current time charter on or about April 23, 2010 and is subject to the completion of definitive documentation. Currently, Genco has approximately 63% of its fleet's estimated available days secured on contracts for the remainder of 2010.

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