Koch Shipping

Koch Shipping Pte Ltd, the shipping division of commodities powerhouse Koch Supply and Trading, has announced the extension of its charters on four (4) newcastlemax bulk carriers belonging to 2020 Bulkers. This extension ensures that Koch Shipping Pte Ltd will maintain control of these newcastlemax bulk carriers for an additional two years at least.
The specific ships in question are the 2019 built newcastlemax bulk carrier 208 K DWT MV Bulk Santiago, 2019 built newcastlemax bulk carrier 208 K DWT MV Bulk Sandefjord, as well as the 2020 built newcastlemax bulk carrier 208 K DWT MV MV Bulk Shenzhen and 2020 built newcastlemax bulk carrier 208 K DWT MV Bulk Sydney. Under the terms of the extended agreement, these newcastlemax bulk carriers will continue to be chartered to Singapore-based Koch Shipping Pte Ltd until the end of 2026. Moreover, there is an option in place for a further 12-month extension of the charter period. This decision underscores the strategic importance of these newcastlemax bulk carriers for Koch Supply and Trading’s ship chartering arm Koch Shipping Pte Ltd’s operations, allowing the company to maintain a robust presence in the bulk carrier market. The extension of these index-linked charters reflects the ongoing demand and reliance on large capacity bulk carriers in the global commodities trading space. 15-November-2023

 

Koch Supply and Trading’s ship chartering arm Koch Shipping Pte Ltd. extends chartering deal for Tor Olav Troim-backed 2020 Bulkers-controlled 2020 built newcastlemax bulk carrier 208K DWT MV Bulk Sydney for up to 18 months. Singapore-based Koch Shipping Pte Ltd. will be paying $19,000 per day for the first 100 days from 19 February 2023. Afterward, Koch Shipping Pte Ltd. will be paying an index-linked charter rate. Previously, Singapore-based Koch Shipping Pte Ltd. chartered in many newcastlemax bulk carriers from Oslo OTC Market-listed (Over the Counter) 2020 Bulkers. Currently, newcastlemax bulk carriers have a substantial premium charter rates to capesize bulk carriers. Tor Olav Troim-backed 2020 Bulkers has a sister-company Himalaya Shipping which is also Oslo OTC Market-listed (Over the Counter). Himalaya Shipping’s twelve (12) LNG dual-fuel newcastlemax bulk carriers now have long-term employment lined up for when the newcastlemax bulk carriers are delivered. 25-January-2023

 

Koch Supply and Trading’s ship chartering arm Koch Shipping Pte Ltd. chartered four (4) of its LNG dual-fuel newcastlemax bulk carriers on long-term time charters from Tor Olav Troim-backed 2020 Bulkers’ sister-company Himalaya Shipping. Singapore-based Koch Shipping Pte Ltd. chartered four (4) of its LNG dual-fuel newcastlemax bulk carriers on 24 month period deal. Koch Supply and Trading’s ship chartering arm Koch Shipping Pte Ltd. will take delivery of four (4) of its LNG dual-fuel newcastlemax bulk carriers when the ships are delivered from New Times Shipbuilding in Q2 and Q3 2023. American giant Koch Industries Commodities Group’s shipping arm Koch Shipping Pte Ltd. chartered four (4) of its LNG dual-fuel newcastlemax bulk carriers at an undisclosed index-linked rate. The charter deal incorporates specific options to commence two charters in 2024. Furthermore, Koch Shipping Pte Ltd’s charter deal incorporates an allocation of profits from any financial advantages achieved from the bulk carriers’ scrubbers or the usage of LNG fuel. Tor Olav Troim-backed Oslo-listed Himalaya Shipping expressed the new charter contracts represent six (6) of Himalaya Shipping’s twelve (12) LNG dual-fuel newcastlemax bulk carriers now have long-term employment lined up for when the newcastlemax bulk carriers are delivered. John Fredriksen’s former right-hand man Tor Olav Troim-backed Bermuda-registered shipowner Himalaya Shipping Ltd is the sister company of 2020 Bulkers. 22-October-2022

 

Koch Shipping extended a year charter deals for two newcastlemax bulk carriers of Tor Olav Troim backed 2020 Bulkers. Koch Supply and Trading’s ship chartering arm Koch Shipping stretches charters for two newcastlemax bulk carriers of Oslo-listed 2020 Bulkers. US-based Koch Shipping is adding one-year deals for newcastlemax bulk carriers 208K DWT MV Bulk Santiago and MV Bulk Seoul. MV Bulk Santiago and MV Bulk Seoul chartered for an index-linked rate reflecting a significant premium to the Baltic 5TC index. MV Bulk Santiago and MV Bulk Seoul charter contracts also have a profit-sharing element from scrubber fuel savings. Tor Olav Troim backed 2020 Bulkers will benefit from Koch Shipping deal. Baltic index-linked time charters will start on 25 December 2019 for MV Bulk Santiago and 1 January 2020 for MV Bulk Seoul. Previously, MV Bulk Santiago and MV Bulk Seoul charters were on fixed-rate. MV Bulk Santiago was fixed for $19,525 per day and MV Bulk Seoul was fixed for $22,250 per day. 29-December-2019

 

2020 Bulkers has begun earning revenue with the delivery of a new Newcastlemax bulk carrier. This marks the first income for Tor Olav Troim’s primary shipowning venture, helping to balance its expenditures. The company’s first out of eight Newcastlemax newbuilds, the 208K DWT MV Bulk Sandefjord, was received from New Times Shipyard in China on August 7 and has started a charter linked to the index with Koch Industries. Previously, 2020 Bulkers lacked an operational fleet for the first half of 2019, resulting in a loss due to the absence of operational income. The company reported a loss of $1.0 million for the second quarter and $2.4 million for the first half, primarily due to general and administrative expenses. The second quarter expenses increased due to higher salaries, professional fees, a non-cash share option cost of $1.0 million, and one-off costs associated with listing the company’s shares on the Oslo Axess market, as per their financial report. Recently, 2020 Bulkers secured a $5.5 million revolving credit facility funded by Tor Olav Troim, the company’s founder. Drew Holdings Limited, Troim’s trust company and the major shareholder in 2020 Bulkers, provided this facility as working capital. This is in addition to $73.2 million in new equity raised in the first six months and a $240 million bank facility obtained in February. 2020 Bulkers expects the delivery of five more ships in the next five months, and the final two by May 2020, with three of these newbuilds already having long-term charters with Koch Supply & Trading. 10-August-2019

 

Tor Olav Troim’s company, 2020 Bulkers, is set to receive early delivery of five out of its eight Newcastlemax newbuildings, taking advantage of the highest vessel rates in nearly a decade. The New Times Shipyard in China will expedite the delivery of the 208K DWT MV Bulk Seoul, MV Bulk Shanghai, and MV Bulk Sydney, with their launch dates moved up to October, November of this year, and January 2020, respectively. Additionally, MV Bulk Santiago and MV Bulk Shenzhen are scheduled for early delivery in September of this year and January 2020. Magnus Halvorsen, CEO of 2020 Bulkers Management, attributes the accelerated pace to a lull in yard orders in September 2017, allowing for more resources to be dedicated to these builds. 2020 Bulkers, anticipating over 2,600 operational ship days in 2020, expects substantial cash flows from these vessels given the current capesize market rates. Halvorsen expressed optimism about the early deliveries, foreseeing enhanced cash flow for investors. Besides these, three other 208K DWT Newcastlemax bulk carriers are under construction at the yard. The MV Bulk Sandefjord, scheduled for August this year, will be the first to be delivered, followed by MV Bulk Sao Paulo and MV Bulk Santos in April and May 2020. Halvorsen also mentioned that 2020 Bulkers aims to prioritize shareholder returns through dividends as their ships begin operations, but remains open to asset sales or consolidation for compelling future opportunities. Three of the newbuildings — MV Bulk Sandefjord, MV Bulk Santiago, and MV Bulk Seoul — are set to start time charters with Koch Supply & Trading upon delivery. Earlier this year, 2020 Bulkers raised significant capital and upgraded its listing from Oslo’s over-the-counter market to the Oslo Axess. 20-July-2019

 

2020 Bulkers, under Tor Olav Troim’s leadership, has successfully raised $70.2 million as it prepares to list on the Oslo Stock Exchange, specializing in Newcastlemax vessels. This capital raise saw the issuance of 7.8 million shares, each priced at $9, with both new and existing shareholders participating. The fundraiser coincided with a bustling week in the Norwegian capital markets, notably alongside Arne Fredly’s Hunter Group, which raised close to $80 million. Originally anticipated to sell its vessels before delivery, 2020 Bulkers shifted its strategy earlier in the year, choosing instead to operate them. This pivot marks Troim’s first foray into solely owning a shipping venture. The transition to the Oslo Stock Exchange follows its initial presence on the city’s over-the-counter market. The company’s move comes amidst rival Polaris Shipping’s exploration of a Norwegian capital listing. Key stakeholders such as Magni Partners, Halvorsens Fabrikk, Titan Credit Master Fund, and MH Capital committed to purchasing $8 million of the offered shares. The exact investment proportions from each entity remain undisclosed post-placement. Various financial institutions, including Clarksons Platou Securities, Danske Bank, DNB Markets, Fearnley Securities, Nordea Bank, Pareto Securities, and Skandinaviska Enskilda Banken, were instrumental in facilitating the capital raise for 2020 Bulkers. The company currently has eight scrubber-equipped Newcastlemax bulk carriers under construction at New Times Shipyard in China, slated for delivery between September 2019 and May 2020. Three of these vessels have already secured charters with Koch Supply and Trading’s arm, Koch Shipping Pte Ltd. The charter rates, reportedly higher than typical capsize vessels, include a three-year indexed rate for the first vessel and one-year agreements for two others at rates around $20,000 and $22,000 per day. This development follows the recent charter by Koch Shipping Pte Ltd of the MV Baltimore, a 177K DWT ship built in 2005, from Diana Shipping, indicating a robust market for such ships. Marius Halvorsen, CEO of 2020 Bulkers, emphasized the company’s intention to prioritize dividends rather than fleet expansion. With this listing, 2020 Bulkers will join Tor Olav Troim’s other venture, Borr Drilling, on the Oslo Stock Exchange, complementing his Golar LNG, which is listed in the US. Additionally, Tor Olav Troim is pursuing an independent listing for Golar’s LNG carrier fleet. 19-May-2019

 

Koch Supply and Trading’s ship chartering arm Koch Shipping Pte Ltd chartered 2017 built newcastlemax bulk carrier 208K DWT MV San Francisco from New York-listed shipowner Diana Shipping. Diana Shipping Koch Shipping Pte Ltd will pay $16,000 per day for MV San Francisco for around two years. Koch Shipping Pte Ltd will pay around $9.1 million in total to Diana Shipping. Simeon Palios-led Diana Shipping has signed the company’s second chartering contract with Koch Supply and Trading’s ship chartering arm Koch Shipping Pte Ltd in two weeks. Previously, Koch Shipping Pte Ltd chartered 2009 built capesize bulk carrier 177K DWT MV Houston for 14 to 17 months from New York-listed shipowner Diana Shipping. 4-March-2019

 

Koch Shipping chartered in new building newcastlemax bulk carriers ordered by 2020 Bulkers. Tor Olav Troim’s 2020 Bulkers ordered 8 newcastlemax bulk carriers in New Times Shipyard in China for delivery in 2019 and 2020. Recently 2020 Bulkers appointed Magnus Halvorsen as the new CEO. Oslo Over The Counter (OTC) listed 2020 Bulkers chartered out first newcastlemax bulk carrier for 3 years to Koch Shipping. New building newcastlemax bulk carrier will be delivered in September 2019 to Koch Shipping. Lately, Koch Shipping is showing a growing interest in taking newcastlemaxes on period charters. Koch Shipping chartered in two (2) similar dry bulk carriers on the period from Diana Shipping 206K DWT MV Philadelphia and 208K DWT MV San Fransisco. Koch Shipping has also fixed newcastlemax bulk carriers from DryShips 205K DWT MV Judd and 226K DWT MV Morandi. 14-January-2019

 

US-listed shipowner and operator Diana Shipping chartered out 2010 built capesize dry bulk carrier 177K DWT MV New York to DHL at $16,000 per day. Previously, MV New York was chartered out US-based fertilizer giant Koch Shipping at $14,450 per day. As company policy US-listed shipowner and operator Diana Shipping charters out all of its fleet on period charters. 20-December-2017

 

American giant Koch Shipping chartered in two (2) capesize dry bulk carriers for one year. Koch Shipping chartered in 2012 built 179K DWT M/V Glovis Advance for $13,750 per day and 2012 built 179K DWT M/V Baltic Lion for $15,000 per day. Charter hire differences occurred due to delivery and redelivery options. 2-April-2017

 

Koch Industries Commodities Group’s shipping arm Koch Shipping has quietly built up chartered tonnage of 11 capesize fleet. Koch Shipping dry bulk chartering based in Geneva. American giant company Koch Industries Commodities Group is controlled by brothers Charles and David Koch. Koch Shipping originally aimed at charters of 2 to 3 year charters. But, shipowners were reluctant to lock in ships in the current market. Koch Shipping Pte Ltd based in Singapore is wholly owned by Koch Supply & Trading LLC Delaware USA. Koch Carbon which is dealing mostly with tonnage panamax and handysize bulk carriers. Koch Industries Commodities Group shipping arm Koch Shipping chartered in capesize dry bulk carrier M/V New Orleans from New York-listed shipowner and operator Diana Shipping for $11,750 per day. In October 2016, Koch Shipping chartered in capesize dry bulk carrier 180K DWT Dream Canary for 12 to 16 months at $10,500 per day from Nissen Kaiun. In September 2016, Koch Shipping chartered in capesize dry bulk carrier 175K DWT M/V ABY Scarlett $8,500 per day for 12 to 16 months from shipowner Augustea. In December 2016, Koch Industries Commodities Group shipping arm Koch Shipping also chartered in NB capesize dry bulk carrier 208K DWT M/V San Francisco (built 2016), at $11,750 per day. 2-March-2017

 

Capesize spot market halved in two weeks to just $7,100 per day by December 14, 2016. $7,100 per day only enough to cover the operating costs of capesize dry bulk carriers. US-listed owner Diana Shipping chartered out 2015 built capesize dry bulk carrier 180K DWT M/V New Orleans to Koch Shipping for $11,250 per day 12 to 16 months. 20-December-2016

 

Spot market rates for capesize bulkers have halved in two weeks to just $7,100 per day by Wednesday. Currently, spot market rates for capesize bulkers have only covering operating costs. Greek shipowner and operator Diana Shipping first fixed out the 2015 built capesize dry bulk carrier 180K DWT M/V New Orleans to Koch Shipping for a year at $11,250 per day. Koch Shipping has done another deal with the US-listed shipowner and operator Diana Shipping. Koch Shipping chartered in capesize dry bulk carrier 208K DWT M/V San Francisco for a year at $11,750 per day. 16-December-2016