In the IPO filing with the US SEC, Stalwart said, “We believe that these dynamics indicate that the market for chemical tankers is in the early stages of a recovery from cyclical lows.”
The company cited data from Drewry Maritime Research, which showed that charter rates for stainless steel tankers increased by 8.4% in 2013 while the orderbook for this type of tanker has remained conservative at 7.9% of the overall fleet total.
Stalwart does not currently own any ships, however upon closure of the IPO, the company said that it would acquire five 20,000 dwt to 25,000 dwt Liberian-flagged, Japanese-built chemical tankers.
In the filing, the company said that it had also signed a letter of intent (LOI) with an South Korean shipyard for four mid-size stainless steel chemical tankers with scheduled delivery dates expected to begin in 2016, as well as options to acquire an additional two vessels with 2017 deliveries. The newbuilding and the options were agreed at an aggregate price of $174 mill and $87 mill, respectively.
Once delivered, the fleet will be operated with a combination of short- and medium-term time, or bareboat, charters and in the spot market.
Stalwart also said that “…in contrast to oil tankers and drybulk carriers, the number of shipyards with the technical capability to build stainless steel vessels is quite limited and, as such, a sudden influx of supply beyond what is already on order is unlikely.”