In February 2017 Calculus Capital completed a £4.75 million investment in Park Street Shipping, a company which purchases and operates secondhand dry bulk vessels. Calculus set up the business in conjunction with Clarksons, the world’s leading provider of integrated shipping services, and Nordic Hamburg, a technical manager which runs a ﬂeet of over 30 ships with in house technical and crewing services.
At the time of investment the shipping industry was an attractive environment, with secondhand asset prices at historic lows. In order to take advantage of the cyclical nature of the sector, Park Street Shipping has already purchased MV Nordic London, a 7 year old, South Korean built, 35,000 dwt Handysize bulk carrier, with an average age of 11 years for the class*. Younger vessels are more economical to run, attracting premium charter rates and lower operating expenses. These factors, in addition to the reputation of South Korean shipyards, should ensure a strong resale market for the vessel as the market recovers.
In August 2019 we have secured a 9 month charter for the Nordic London with a reputable charterer on favourable terms. In accordance with EIS regulation, we will procure time charters of less than 12 months until the cycle recovers, with a sale of the vessel targeted for 3-5 years’ time.
Handysize vessels are smaller bulk carriers, often, as is the case with MV Nordic London, equipped with their own cranes. This, and their shallow draught, allows them to transport a wide variety of bulk commodities to a large selection of ports around the world. The ﬂexibility this provides gives a degree of insulation from weak growth in major dry bulk trade volumes, as Handysize vessels are also able to transport minor bulk (such as steel, fertiliser, grains, etc.), a group of commodities that saw growth across 2016.
*Source: Clarksons Research