Precious Shipping Expands into Tanker Sector with Strategic Acquisition
Thailand’s Precious Shipping has officially entered the tanker market by acquiring a medium-range product tanker, marking a significant shift from its traditional focus on dry bulk shipping. The Bangkok-listed company announced that its wholly owned subsidiary, Precious Horizon, has finalized the purchase of the 2006-built MR tanker, *Florence*, for $11.1 million. This acquisition represents a strategic move to diversify its operations and reduce dependence on the volatile dry bulk sector.
The *Florence*, with a deadweight tonnage of 48,000, was constructed at Iwagi Zosen in Japan. This vessel will serve as the cornerstone of Precious Shipping’s new venture into the product tanker space. The company, led by Khalid Hashim, currently operates a fleet of approximately 40 bulk carriers. The acquisition is part of a broader strategy aimed at tapping into different demand drivers and chartering dynamics within the shipping industry. By expanding into the tanker segment, Precious Shipping seeks to create a more balanced revenue base, enhancing its long-term resilience against market fluctuations.
Precious Shipping Secures Long-Term Charters for New Ultramax Bulkers
Strategic Moves and Future Plans
The decision to acquire the *Florence* is not an isolated incident. In March of the previous year, Precious Shipping indicated its intention to diversify beyond bulk carriers by forming a joint venture with Malaysia-based Emstraits Navigation and Lianson Fleet. This collaboration, named Nusantara Maritime, focuses on shipowning, operations, and leasing across various segments, including LNG, LPG, and crude tankers. This joint venture underscores the company’s commitment to expanding its portfolio and adapting to changing market conditions.
The acquisition of the *Florence*, which is expected to close by March 15, represents a concrete step into the tanker market for Precious Shipping. This move is particularly noteworthy for a company that has long been associated with dry bulk trades. By diversifying its fleet to include tankers, Precious Shipping aims to mitigate risks associated with the cyclical nature of the dry bulk market. The company’s strategic expansion into the tanker sector is designed to enhance its operational flexibility and capitalize on emerging opportunities in the shipping industry.
As Precious Shipping embarks on this new chapter, the company is poised to leverage its existing expertise while navigating the complexities of the tanker market. This acquisition not only signifies a pivotal moment for the company but also reflects a broader trend within the maritime industry, where companies are increasingly seeking to diversify their operations to ensure sustainable growth in an ever-evolving market landscape.
