Polaris Shipping, a leading shipowner in South Korea, is navigating through a challenging period marked by the sentencing of its CEO, a faltering acquisition attempt, and a significant reduction of its fleet. The company’s CEO was recently sentenced to three years in prison for professional negligence related to the sinking of the MV Stellar Daisy, a very large ore carrier (VLOC) built in 1993, which sank in the Atlantic near Uruguay in March 2017, resulting in the tragic loss of 22 crew members. The court found that the CEO prioritized profits over safety, neglecting necessary hull maintenance and repairs, which led to the ship’s rapid sinking within five minutes. Alongside, two other senior executives from Polaris Shipping were sentenced to two years and one year in prison, respectively, by a Busan court. The MV Stellar Daisy disaster, which saw only two survivors out of 24 crew members, has been one of the most notable maritime tragedies of the century, sparking extensive legal battles by the victims’ families to uncover the reasons behind the vessel’s swift capsizing and sinking. Investigations revealed that Polaris Shipping had installed an unauthorized wastewater storage device and failed to inspect or reinforce the ship’s hull adequately. The Marshall Islands’ report in April 2019 attributed the sinking to a catastrophic structural failure of the hull. This incident led Polaris Shipping to conduct urgent inspections across its fleet, resulting in the sale of all its older converted vessels. VLOCs (very large ore carriers), often converted from very large crude carriers (VLCCs) due to dry bulk market cycles and IMO regulations phasing out single-hull tankers by 2010, became a focus for investors seeking to capitalize on long-term affreightment contracts. Amid these challenges, Polaris Shipping, a prominent operator of newcastlemax bulk carriers and VLOCs, with a fleet of 19 giant carriers, faced difficulties in its sale process. The negotiation with Woori Private Equity Asset Management stalled over a significant price disagreement estimated at $150 million. Recently, Polaris Shipping made headlines with the year’s largest bulk sale and purchase transaction, offloading four Chinese-built newcastlemax bulk carriers—MV Solar Quantum, MV Solar Pride, MV Solar Nova, and MV Solar Oak—following competitive bidding. This move highlights the ongoing strategic adjustments Polaris Shipping is making in response to its current difficulties. 8-February-2024
Today, the Busan Regional Maritime Safety Tribunal found Polaris Shipping at fault for insufficient maintenance, leading to the sinking of the MV Stellar Daisy. This converted ore carrier sank in the Atlantic near Uruguay in March 2017, resulting in 22 fatalities. The 1993-built MV Stellar Daisy, a highly publicized maritime disaster of this century, has been at the center of numerous legal challenges by the families of the deceased to determine the cause of its rapid capsizing and sinking. Only two of the 24 crew members survived. The tribunal revealed that one of the globe’s leading operators of large bulk carriers, South Korean shipowner and operator Polaris Shipping Co. Ltd. installed an unauthorized wastewater storage unit on the ship’s bottom and failed to inspect or reinforce the hull. Despite the need for repairs to safely carry cargo, Busan-based shipowner and operator Polaris Shipping Co. Ltd. allowed the MV Stellar Daisy to embark without the necessary reinforcements. The Marshall Islands, under whose flag the ship sailed, attributed the disaster in their April 2019 report to a catastrophic structural failure of the hull.
Originally a Very Large Crude Carrier (VLCC) converted into an Ore Carrier, the MV Stellar Daisy took on water and split in two rapidly. Following this incident, another 1993-built converted ore carrier of Polaris Shipping Co. Ltd. was diverted to Cape Town for repairs due to a hull crack, leading the company to conduct urgent inspections across its fleet. This resulted in a 1992-built converted carrier also being sent to Cape Town for repairs, and eventually, all of Polaris Shipping Co. Ltd.’s older converted vessels were sold. The conversions of VLCCs to Very Large Ore Carriers (VLOCs) were driven by the dry bulk supercycle and IMO regulations mandating the phasing out of single-hull tankers by 2010. This created an opportunity for investors to repurpose cheap, obsolete tankers into VLOCs for long-term contracts, often lasting 10 years. In 2021, the CEO of Polaris Shipping Co. Ltd. was sentenced by an appellate court to six months in prison for violating the Ship Safety Act and is awaiting the final verdict from the Supreme Court. In 2022, seven individuals, including the CEO, were indicted on manslaughter by negligence charges, and these trials are ongoing. 6-December-2023
One of the globe’s leading operators of large bulk carriers, South Korean shipowner and operator Polaris Shipping Co. Ltd., is set to continue its operations under Korean ownership. Recent reports from various media outlets in South Korea confirm that Woori Private Equity Asset Management Co has emerged as the preferred bidder to acquire Polaris Shipping Co. Ltd. The deal, which is valued at approximately $447.5 million, also brings in HMM – South Korea’s flagship carrier – and the state-operated Korea Ocean Business Corporation (KOBC) as minority stakeholders. The management at Polaris Shipping Co. Ltd. had been considering as many as 20 potential takeover proposals. Polaris Shipping Co. Ltd. began soliciting preliminary bids in May 2023 and engaged Lazard Asset Management to explore potential sales options. With a fleet primarily comprised of newcastlemax bulk carriers and VLOCs (very large ore carriers), South Korean shipowner and operator Polaris Shipping Co. Ltd. stands as one of the world’s predominant large bulker operators. The sale of Polaris Shipping Co. Ltd. is part of a broader trend in the Korean shipping industry this year. Several other major Korean shipowners have also been listed for sale. 21-September-2023
Efforts to market South Korean shipowner and operator Polaris Shipping Co. Ltd. , suffered a significant setback this week, as authorities in Seoul conducted a meticulous search of the Polaris Shipping’s main office amidst allegations of embezzlement. The scrutinization transpired on a somber Monday morn, with official documents and digital storage devices seized. The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency has professed that they are meticulously examining Mo Han and Mo Kim, the distinguished co-CEOs of Polaris Shipping, for the alleged misallocation of a staggering $37.7 million. This sum, it is purported, was bestowed upon Polar Energy & Marine, the overarching entity of South Korean shipowner and operator Polaris Shipping Co. Ltd., to fortify the Polaris Shipping’s managerial prerogatives, as per the constabulary’s assertion. Prior to this unforeseen intrusion by the law, the echelons of Polaris Shipping had been meticulously evaluating nearly two dozen acquisition proposals, having previously beckoned for preliminary offers in May, whilst engaging Lazard Asset Management to probe the feasibility of a prospective sale. South Korean shipowner and operator Polaris Shipping Co. Ltd. stands as one of the preeminent large bulker shipowner on the global stage, boasting a fleet predominantly comprised of newcastlemax bulk carriers and VLOCs (Very Large Ore Carriers). On an international scale, it has been indelibly etched into maritime history owing to the tragic submersion of the MV Stellar Daisy in 2017; a harrowing incident that ranks among the most conspicuous bulk carrier mishaps of the current century and precedes a chain of unfortunate calamities that plagued the shipping conglomerate in rapid succession. This year has witnessed Polaris Shipping Co. Ltd. as merely one among a myriad of South Korean maritime magnates being offered for acquisition, a comprehensive roster that encompasses luminaries such as HMM, Hyundai LNG Shipping, H-Line Shipping, and SK Shipping. 1-September-2023
South Korean shipowner and operator Polaris Shipping Co. Ltd. has been gracefully presented to the market as the esteemed shipowner contemplate a departure from the sector. Having invested profoundly in the transition of VLOCs (Very Large Ore Carriers), a queue of prospective purchasers emerges with the unveiling of the prominent VLOC enterprise, Polaris Shipping. Chinese shipping giant Cosco Shipping Bulk has manifested a keen inclination to acquire the South Korean shipowner and operator Polaris Shipping Co. Ltd.’s fleet, aiming to augment its bulk trade. Polaris Shipping, a paragon in the shipping world, boasts ownership of an impressive 15 VLOCs (Very Large Ore Carriers) accompanied by 4 newcastlemax bulk carriers in its distinguished fleet. 30-August-2023
South Korean shipowner and operator Polaris Shipping Co. Ltd. has a fairly high debt-to-equity ratio of about 500%. Seoul-based shipowner and operator Polaris Shipping is understood to be in refinancing discussions. In June 2022, Hoban Construction, a subsidiary of a Chinese private equity fund spent $105 milion to buy a 25% stake in the South Korean shipowner and operator Polaris Shipping Co. Ltd., which was held by private equity fund Polaris Ocean PEF. Struggling shipowner Polaris Shipping Co. Ltd. is shoring up its business against would-be buyers after fending off the advances of a local consortium. Currently, South Korean ship owner and operator Polaris Shipping has a fleet of 32 capesize bulk carriers and 3 tankers. 15-October-2022
South Korean shipowner and operator Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner grounded off Vale’s Ponta de Madeira terminal in February 2020. A Marshall Islands safety investigation has highlighted a judgment to deviate from a passage plan as a significant factor driving to the loss of MV Stellar Banner. After taking on water the MV Stellar Banner was intentionally grounded by the master. MV Stellar Banner’s wreck was finally towed to deep water and scuttled. Polaris Shipping controlled MV Stellar Banner’s incident accumulated over $100 million in casualty and property losses for maritime insurers. The Marshall Islands Flag-State examination determined that the contributory reasons of the disaster include the MV Stellar Banner’s master’s determination to deviate from the planned route during the outbound transit of Baia de Sao Marcos. Polaris Shipping controlled MV Stellar Banner’s passage plan had been drawn up by the ship’s second officer before sailing from the port. Furthermore, MV Stellar Banner’s passage plan was approved by the master. Marshall Islands report stated that Polaris Shippings’s procedures did not present explicit expectations and direction regarding the use of bridge resource supervision. 1-November-2021
South Korean shipowner and operator Polaris Shipping sold 1994 built VLOC (Very Large Ore Carrier) 298K DWT MV Stellar Pioneer and 1994 built VLOC (Very Large Ore Carrier) 298K DWT MV Stellar Topaz for demolition for $430 per LDT (Light Displacement Tonnage), or around $20 million each. South Korean shipowner and operator Polaris Shipping proceeds to scrap vintage VLOCs (Very Large Ore Carriers). Polaris Shipping has been renewing its fleet. In 2020, Polaris Shipping sold 13 VLOCs (Very Large Ore Carriers) to scrapyards. In 2012, Polaris Shipping acquired MV Stellar Pioneer and MV Stellar Topaz from iron ore mining giant Vale. Polaris Shipping has ordered one (1) capesize bulk carrier and six (6) VLOCs (Very Large Ore Carriers) new-buildings. 13-January-2021
South Korean shipowner and operator Polaris Shipping sold 1994 built VLOC (Very Large Ore Carrier) 305K DWT MV Stellar Ocean for demolition in India for around $15 million. Previously, South Korean shipowner and operator Polaris Shipping sold 1993 built VLOC (Very Large Ore Carrier) 289K DWT MV Stellar Liberty for demolition in Bangladesh for around $18 million. Since the beginning of 2020, Seoul-based shipowner and operator Polaris Shipping sold eleven (11) bulk carriers. 28-October-2020
South Korean shipowner and operator Polaris Shipping has sold two VLOCs (Very Large Ore Carriers) for demolition. Polaris Shipping sold 1994 built VLOC 291K DWT MV Stellar Samba for around $11 million. Polaris Shipping sold 1995 built VLOC 288K DWT MV Stellar Iris for around $10 million. 8-June-2020
Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner has been refloated off Brazil. Polaris Shipping controlled MV Stellar Banner was towed by salvors Smit and Ardent to the deeper ocean where the inspections will be carried out. MV Stellar Banner went aground off Vale’s Ponta de Madeira terminal in February 2020. MV Stellar Banner is classed by the Korean Register of Shipping (KRS) and has insurance coverage from Britannia P&I. 4-June-2020
Vale is proactively managing its fleet by planning to eliminate or alter contracts for up to 25 converted Very Large Ore Carriers (VLOCs), reflecting a strategic shift in risk management aimed at bolstering operational safety and efficiency. The specifics of the vessels involved and the schedule for these modifications remain undisclosed. This initiative aligns with Polaris Shipping’s potential sale of up to 10 converted ore carriers engaged under contracts with Vale, signaling a pivot towards adopting newer, chartered-in bulk carriers and orders for new ships from Polaris, driven by considerations around the high fuel costs associated with IMO 2020 regulations and safety concerns. This move to phase out older VLOCs, built in the early ’90s, comes after the notable sinking of the MV Stellar Daisy in 2017, which claimed the lives of 22 crew members, and the grounding of the MV Stellar Banner in February following its departure from a Brazilian terminal. Vale’s involvement in the recovery efforts for the MV Stellar Banner underscores its commitment to operational safety and preventive measures. These fleet management decisions were revealed alongside Vale’s first-quarter performance, which did not meet expectations, leading to a reduction in the 2020 capital expenditure forecast from $5 billion to $4.6 billion, attributed to the impacts of the COVID-19 pandemic on construction and maintenance activities. Vale acknowledges the possibility of further adjustments to its capital spending, indicating these are not cutbacks but delays into 2021. Additionally, Vale has postponed maintenance at various facilities, anticipating a negative impact on production, especially in base metals operations—a consequence of ongoing concerns over the pandemic’s effect on production and maintenance, previously flagged by Vale in April 2020 adjustments to its production forecasts across several divisions. This comprehensive approach to addressing both safety issues and the pandemic’s broader effects highlights Vale’s strategic responses to internal and external challenges during this period. 27-April-2020
South Korean shipowner and operator Polaris Shipping have signed deals under terms of the Lloyd’s Open Form (LOF) with Smit and Ardent for salvage of VLOC (Very Large Ore Carrier) MV Stellar Banner. MV Stellar Banner grounded off Vale’s Ponta de Madeira terminal. MV Stellar Banner insurers are to split costs under GA (General Average). Smit and Ardent is a leading salvage company. South Korean shipowner and operator Polaris Shipping, Vale, Smit and Ardent has been trying to mitigate any impacts caused by the incident. Therefore, MV Stellar Banner’s full tanks will be offloaded. Brazilian mining giant Vale has been providing all the technical and operational support to MV Stellar Banner. Smit and Ardent will try to refloat MV Stellar Banner however the risk that the hull may be declared a CTL (Constructive Total Loss). Under Lloyd’s Open Form (LOF) terms, the salvage award is partly decided as a proportion of the value of the iron ore cargo and the value of the salvaged hull. According to South Korean shipowner and operator Polaris Shipping, MV Stellar Banner is worth around $66.6 million. MV Stellar Banner’s Protection and Indemnity (P&I) cover is placed with Britannia P&I Club. MV Stellar Banner’s crew insurance is with Korea P&I Club. 7-March-2020
Grounding of Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner has reignited concerns over the structural fragility of modern VLOCs (Very Large Ore Carriers) and safety concerns. MV Stellar Banner’s master grounded the VLOC (Very Large Ore Carrier) off Brazil after it departed Vale’s Ponta de Madeira terminal. MV Stellar Banner’s master reported water ingress. South Korean shipowner and operator Polaris Shipping MV Stellar Banner might hit an object in the channel after departure. Previously, liquefaction of iron-ore fines loaded onto the MV Stellar Banner has been linked with stability problems in bulk carriers. Nevertheless, liquefaction is regularly linked with nickel ore than iron ore. Modern VLOC (Very Large Ore Carrier) MV Stellar Banner was built to tolerate the rapid loading rates. MV Stellar Banner’s master promptly grounded the VLOC (Very Large Ore Carrier) because VLOC designs are vulnerable to catastrophic flooding of the cargo holds when water ingress is present. The fragility of large bulk carrier designs to progressive flooding was demonstrated in the accident report into the loss of the 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy. In 2017, MV Stellar Daisy was also carrying iron ore from Brazil to China in 2017. The rapid sinking of the MV Stellar Daisy, which suffered structural failure after water ingress, claimed 22 of the 24 seafarers. Even modern and purpose-built VLOCs (Very Large Ore Carriers) have some of the structural weaknesses. 6-March-2020
Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner’s 20 seafarers were evacuated after the vessel listed off Brazil. MV Stellar Banner has water in its cargo holds. Initial reports suggested the MV Stellar Banner had a potential crack in its hull. Vale announced the MV Stellar Banner was suffered bow damage after leaving the terminal in the northern Brazil city Maranhao. Brazilian iron ore giant Vale has sent tugboats and cooperating with maritime authorities. South Korean shipowner and operator Polaris Shipping controlled MV Stellar Banner loaded iron ore at Vale’s Ponta da Madeira terminal and after the departure, the listing MV Stellar Banner was intentionally grounded by its master. According to Polaris Shipping, MV Stellar Banner made contact with an unidentified shallow seabed after leaving the loading terminal. Afterward, some ballast water tanks suffered damage, and salvage operation has commenced. MV Stellar Banner is classed by the Korean Register of Shipping (KR) and has insurance coverage from Britannia P&I Club. 2017 MV Stellar Daisy incident caused scrutiny over the Polaris Shipping’s fleet of older VLOCs (Very Large Ore Carriers) that were converted from tankers. 28-February-2020
Polaris Shipping controlled 2016 built VLOC (Very Large Ore Carrier) 301K DWT MV Stellar Banner has not leaked oil. MV Stellar Banner’s master intentionally grounded the VLOC (Very Large Ore Carrier) off the coast of Brazil. MV Stellar Banner began taking on water and listing severely about 65 nautical miles away from Vale’s Ponta da Madeira iron ore loading terminal. South Korean shipowner and operator Polaris Shipping has been in close collaboration with Vale. Polaris Shipping and Vale has been mobilizing all available assets in Brazil to eradicate any potential risk from the oil spillage. Polaris Shipping has sent an anti-pollution team to the site of the incident to strictly monitor the situation. South Korean shipowner and operator Polaris Shipping has been performing all efforts and resources to accelerate salvage operations of MV Stellar Banner. Brazilian mining giant Vale has also hired salvage specialists, in addition to those hired by Polaris Shipping, to assist with discharging oil from the MV Stellar Banner. 27-February-2020
Vale has called on Petrobras for assistance following a potential oil leak from the MV Stellar Banner, managed by Polaris Shipping, which is currently partially submerged off the coast of Brazil. This incident involving the 300K DWT iron ore carrier, located 100 km from Maranhao near the Ponta da Madeira Maritime Terminal, has raised environmental concerns. In response, Vale requested that Petrobras send an oil spill recovery vessel to address any potential spillages from the stricken vessel, which has been adrift since Wednesday morning. The Brazilian environmental authorities have authorized the deployment of response vessels to the vicinity of Maranhao’s coast. Furthermore, Vale is collaborating with salvage experts to complement Polaris Shipping’s removal efforts and has sought offshore booms to mitigate any spillage. Measures are being taken to facilitate the transfer of personnel to the site, following the successful evacuation of 20 crew members from the ship. Initial investigations suggested that the vessel may have suffered a hull breach due to bow damage upon its departure. However, Polaris Shipping, the registered owner and manager of the vessel, reported that the slight oil sheen observed was due to residual dead oil on deck, not a leak from the fuel tank, thus postponing the installation of an oil fence. Nonetheless, anti-pollution teams have been deployed as a precaution to closely monitor the situation. A specialized salvage team is on-site conducting a detailed assessment to ensure the ship’s safe removal, with a strong emphasis on environmental safety. Polaris Shipping has committed significant resources to mitigate any environmental impact, maintaining that the MV Stellar Banner’s cargo holds are secure and the situation is stable. The ship is suspected of hitting an uncharted shallow seabed after leaving Maranhao, causing damage to certain ballast water tanks and void spaces. The extent of this damage is still being evaluated. Polaris Shipping has described reports of a leak as speculative. 26-February-2020
Seoul-based shipowner and operator Polaris Shipping ordered two (2) newcastlemax bulk carriers 218K DWT at Shanghai Waigaoqiao Shipbuilding (SWS). Polaris Shipping has chartered out two (2) newcastlemax bulk carriers to Brazilian iron ore giant Vale for the long-term. South Korean shipowner and operator Polaris Shipping has not revealed the details of the Vale charter contracts and the two (2) newcastlemax new-building prices. Two (2) newcastlemax bulk carriers 218K DWT will be built to the IMO’s (International Maritime Organization’s) NOx Tier III emissions standards and fitted with scrubbers at Shanghai Waigaoqiao Shipbuilding (SWS). Shanghai Waigaoqiao Shipbuilding (SWS) is going to deliver the two (2) newcastlemax bulk carriers in Q4 2020. Previously, Polaris Shipping ordered capesize bulk carrier 180K DWT at Shanghai Waigaoqiao Shipbuilding (SWS) against a long-term charter with Hyundai Glovis. 20-November-2019
Seoul-based shipowner and operator Polaris Shipping has postponed its planned listing on the Oslo Stock Exchange to the Q1 2020 due to a court case over the sinking of the 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy to be resolved. South Korean shipowner and operator Polaris Shipping is aiming to raise around $300 million in an initial public offering (IPO) to finance new-buildings. Furthermore, Polaris Shipping aims to replace various of its converted VLOCs (Very Large Ore Carriers). Pareto Securities and DNB are the global coordinators for Seoul-based shipowner and operator Polaris Shipping’s initial public offering (IPO). Bookrunners for the Polaris Shipping’s initial public offering (IPO) are Arctic Securities and ABG Sundal Collier. Currently, Polaris Shipping operates 24 large bulk carriers and 2 Aframax tankers. Additionally, Polaris Shipping ordered 18 new-building bulk carriers at the Korean and Chinese shipyards. 18-November-2019
Seoul-based shipowner and operator Polaris Shipping postpones Oslo Stock Exchange’s initial public offering (IPO) to 2020. South Korean shipowner and operator Polaris Shipping will wait until a Seoul trial into the loss of the 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy is completed and the case will be resolved. Furthermore, weak dry bulk markets have delayed Polaris Shipping Oslo Stock Exchange’s initial public offering (IPO). Initial public offering (IPO). Polaris Shipping plans to use the funds to finance new-buildings and replace several of its converted VLOCs (Very Large Ore Carriers). South Korean ship owner and operator Polaris Shipping has been working on the Oslo Stock Exchange listing plan for more than a year. Polaris Shipping has encountered interrogations since the 1993 built Very Large Ore Carrier (VLOC) 266K DWT MV Stellar Daisy sank on 31 March 2017 while transporting iron ore from Brazil to China. MV Stellar Daisy’s loss was most likely due to a catastrophic structural failure of the converted Very Large Ore Carrier’s (VLOC’s) hull. Hearings in the Seoul court case over Polaris Shipping’ compliance with ship safety rules have now been concluded. It was a positive trial for Polaris Shipping. Bookrunners for the Polaris Shipping Oslo Stock Exchange’s initial public offering (IPO) are Arctic Securities and ABG Sundal Collier. Norwegian shipping market players remain skeptical of the Polaris Shipping Oslo Stock Exchange’s initial public offering (IPO) because of the company’s old converted Very Large Ore Carriers (VLOCs). Currently, South Korean ship owner and operator Polaris Shipping has a fleet of 26 Very Large Ore Carriers (VLOCs), 7 capesize bulk carriers, and 2 aframax tankers. Additionally, Polaris Shipping 16 new-building bulk carrier orders. 21-October-2019
South Korean shipowner and operator Polaris Shipping is switching its stock listing from Singapore to Oslo. Polaris Shipping believes Norwegian listing will give the company higher value as investors understand shipping markets better than in Singapore. Polaris Shipping has already met with a few securities companies in the Norwegian capital Oslo. According to Polaris Shipping, Singapore is relatively small and the valuation of shipping companies is low. Polaris Shipping has been looking to be listed in Oslo since 2013. However, Polaris Shipping’s plans were foiled due to deteriorating financial markets and the sinking of MV Stellar Daisy. 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy which is converted to VLOC (Very Large Ore Carrier) from a tanker, sink off Uruguay in 2017 with the loss of 22 seafarers. South Korean shipowner and operator Polaris Shipping is led by Kim Wan-Joong Financial market sources have expressed their concerns over whether an IPO (Initial Public Offering) will succeed as shipping companies’ shares are trading at a significant discount. Shipping market cite concerns over Polaris Shipping continued use of older VLOCs (Very Large Ore Carriers) which were converted from VLCCs (Very Large Crude Carriers). Furthermore, in the fleet of Polaris Shipping, fourteen (14) ore carriers were built before 2000. Korean Development Bank has already been a major financier of the Polaris Shipping’s new fleet. Korean Development Bank finance most of Polaris Shipping’s new-building projects that is around $1 billion. South Korean shipowner and operator Polaris Shipping was established in 2004. Currently, Polaris Shipping’s trading fleet of 34 bulk carriers is worth more than $1 billion. Furthermore, Polaris Shipping’s 18 new-building ships are worth around $1.4 billion. 25-August-2019
Korean maritime police have asked for an arrest warrant for Polaris Shipping’s chairman Kim Wan-Joong over the sinking of the 2013 built Very Large Ore Carrier (VLOC) 264K DWT MV Stellar Daisy in 2017. Very Large Ore Carrier (VLOC) 264K DWT MV Stellar Daisy went down off Uruguay on 1 April 2017. 22 crew members died and only 2 crew members were survived. Survived crew members reported that water ingress through-hull cracking led to the tragedy. Korean court hearing was set for 24 January to decide on the incident. Korean maritime police press charges including negligent homicide against Polaris Shipping’s chairman Kim Wan-Joong. Two more Polaris Shipping top officials were also sought. 24-January-2019
Seoul-based shipowner and operator Polaris Shipping managed 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy’s accident report suggests flag state (Marshall Islands) should make recommendations to the IMO (International Maritime Organization) as structural weakness of VLOC (Very Large Ore Carrier) conversions is revealed. Accident investigators have requested flag state (Marshall Islands) authorities to call on the IMO (International Maritime Organization) to close a crucial loophole in the International Convention for the Safety of Life at Sea (SOLAS) following an investigation into the loss of the 1993 built VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy. On the catastrophic structural failure of the converted VLOC (Very Large Ore Carrier) 266K DWT MV Stellar Daisy that claimed 22 lives in the Atlantic off Uruguay on 31 March 2017, as MV Stellar Daisy sailed from Brazil to China. According to the flag state (Marshall Islands) report, the MV Stellar Daisy incident due to catastrophic structural failure of the bulk carrier’s hull. Flag state (Marshall Islands) report highlights the exclusion of VLCC-to-VLOC conversions from the Solas Chapter XII additional safety requirement for bulkers over 150 meters. Because of the MV Stellar Daisy’s technical dimensions, only its number one cargo hold had to comply with this International Convention for the Safety of Life at Sea (SOLAS) regulation to survive a flooded condition. International Convention for the Safety of Life at Sea (SOLAS) regulation is crucial because the MV Stellar Daisy could not survive the initial flooding on the day it sank. According to the flag state (Marshall Islands) report, MV Stellar Daisy suffered structural failure that caused rapid flooding of the number two and then number three port wing ballast tanks (WBTs). Afterward, progressive flooding of the cargo holds that within minutes put the MV Stellar Daisyinto a 45-degree list from which MV Stellar Daisy could not recover. In the flag state (Marshall Islands) report, structural problems were classified in the MV Stellar Daisy and other similar aging VLCC-to-VLOC conversions. Very Large Crude Carrier (VLCC)-to-Very Large Ore Carrier (VLOC) converted MV Stellar Daisy sinking proved how fatigue cracks could be catastrophic for conversions. Additionally, structural failure down to the loss of structural strength over time due to material fatigue and corrosion. MV Stellar Daisy’s size of the crack would develop and potentially lead to a loss of shell plate and cause massive, uncontrollable flooding. MV Stellar Daisy was built as a Very Large Crude Carrier (VLCC) and designed to operate for 20 years, sank at the age of 23. Most of the cracking found in the converted Very Large Ore Carrier (VLOC) was in areas of old steel. After the MV Stellar Daisy disaster, the Korean Register of Shipping conducted inspections of 18 Very Large Ore Carrier (VLOC) conversions in the Polaris Shipping fleet. 23-April-2019
South Korean shipowner and operator Polaris Shipping has recruited Pareto Securities and DNB as coordinators for an IPO (Initial Public Offering) in Oslo Stock Exchange. Polaris Shipping aimed at raising as much as $1 billion. Polaris Shipping plans on the IPO (Initial Public Offering) taking place during the second half of 2019. Polaris Shipping plans to use the fundraise will partially be used for the new-building bulk carriers. Polaris Shipping has been looking to list in Oslo Stock Exchange since 2013. Previously, Polaris Shipping has postponed IPO (Initial Public Offering) in Oslo Stock Exchange due to deteriorating financial markets and the sinking of the MV Stellar Daisy. Shipping market players have questioned whether Polaris Shipping’s Oslo Stock Exchange listing plan will be affected by the weak dry bulk market, as well as capital markets that have proven all but closed to traditional shipping IPO (Initial Public Offering). Meantime, there are also some concerns over Polaris Shipping’s continued use of converted VLOCs (Very Large Ore Carriers) built before 2000. Currently, South Korean shipowner and operator Polaris Shipping has 17 new-building bulk carriers under construction. 17 new-building bulk carriers will replace some of the existing bulk carriers. Seoul-based shipowner and operator Polaris Shipping has a strong relationship with Brazilian iron ore giant Vale. Polaris Shipping has chartered out 18 VLOCs (Very Large Ore Carriers) into long-term contracts of up to 25 years. Polaris Shipping was established in 2004. Currently, Polaris Shipping is controlling a fleet of 35 bulk carriers. 27-February-2019
South Korean ship owner and operator Polaris Shipping is arguing against a South Korean government’s decision to search for the wreckage of the sunken Very Large Ore Carrier (VLOC) 1993 built 266K DWT MV Stellar Daisy. Brazilian mining giant Vale controlled MV Stellar Daisy suffered catastrophic structural failure and sank at a depth of 3,000 meters in the ocean while fully laden with a cargo of iron ore heading from Brazil to China in March 2017. The search of MV Stellar Daisy had been approved by South Korean President Moon Jae In. MV Stellar Daisy search decision was made after lobbying from families of the 22 crew members that died in the accident. South Koreans hope the voyage data recorder of MV Stellar Daisy could be recovered in order to uncover tragic incident. South Korean ship owner and operator Polaris Shipping does not want an underwater wreck survey to go ahead. 19-December-2018
South Korean shipowners and operators Polaris Shipping, H-Line, and Pan Ocean is ordering $594 million worth of newcastlemax dry bulk carriers (210K DWT) on the back of Contract of Affreightments (COAs) from Brazil’s mining giant Vale. Newcastlemax orders will be placed at Chinese shipyard New Times Shipbuilding. Jiangsu-based Chinese shipyard New Times Shipbuilding will build up to eleven (11) newcastlemax dry bulk carriers (210K DWT) which are backed by five-year COAs from Vale. IMO Tier III standard newcastlemax dry bulk carrier will have a price tag of $54 million each. Chinese shipyard New Times Shipbuilding will deliver the newcastlemax dry bulk carriers from the second half of 2020. This is the first tender of Brazilian mining giant Vale for newcastlemax dry bulk carriers on long-term charter. Previously, Vale has only tendered orders for 400K DWT Valemax VLOCs and 325K DWT Guaibamaxes. Rio de Janeiro based iron-ore miner Vale usually charters capesize and newcastlemax dry bulk carriers from the spot market. This is the first time Vale is chartering for five (5) years, as Vale anticipates charter rates will increase over the next five (5) years. Therefore, Vale is looking to lock in the newcastlemax dry bulk carriers before the freight rates spike. South Korean shipowners Polaris Shipping, H-Line, and Pan Ocean have chosen Chinese New Times Shipbuilding due to its competitive price tag. 14-December-2018
South Korea based Polaris Shipping’s VLOC (Very Large Ore Carrier) MV Stellar Daisy sent a distress signal on 31 March 2017 and sunk off in South Atlantic. MV Stellar Daisy was carrying 260,000 tons of iron ore from Brazil to China. MV Stellar Daisy’s only two (2) crew members were rescued and other crew members are still missing. Marshall Islands-registered MV Stellar Daisy was 1,500 miles away from the shore of Uruguay and search operation is continuing for 22 missing crew members. 2-April-2017