We are an international provider of marine drybulk transportation services,
transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide
shipping routes for some of the world’s largest consumers of marine drybulk
transportation services. We had a fleet of 33 drybulk vessels, with an aggregate
carrying capacity of 3,019,700 dwt and an average age of 5.8 years, making us
one of the world’s youngest fleets of Panamax, Kamsarmax, Post-Panamax
and Capesize class vessels. Our fleet is expected to grow through 2018 as the
result of the delivery of 11 further contracted newbuild vessels, comprised
of four Panamax class vessels, four Kamsarmax class vessels and three Post-Panamax
class vessels. Upon delivery of the last of our contracted newbuilds, assuming
we do not acquire any additional vessels or dispose of any of our vessels, our
fleet will be comprised of 44 vessels, having an aggregate carrying capacity
of 3,906,400 dwt.
We employ our vessels on both period time charters and spot time charters, according
to our assessment of market conditions, with some of the world’s largest
consumers of marine drybulk transportation services. The vessels we deploy on
period time charters provide us with relatively stable cash flow and high utilization
rates, while the vessels we deploy in the spot market allow us to maintain our
flexibility in low charter market conditions.
Safe Bulkers, Inc. was incorporated in the Republic of the Marshall Islands
on December 11, 2007, under the BCA, for the purpose of acquiring ownership
of various subsidiaries that either owned or were scheduled to own vessels.
We are controlled by the Hajioannou family, which has a long history of operating
and investing in the international shipping industry, including a long history
of vessel ownership. Vassos Hajioannou, the late father of Polys Hajioannou,
our chief executive officer, first invested in shipping in 1958. Polys Hajioannou
has been actively involved in the industry since 1987, when he joined the predecessor
of Safety Management.
Over the past 20 years under the leadership of Polys Hajioannou, we have renewed
our fleet by selling 11 drybulk vessels during periods of what we viewed as
favorable secondhand market conditions and contracting to acquire 53 drybulk
newbuilds and four drybulk secondhand vessels. Also under his leadership, we
have expanded the classes of drybulk vessels in our fleet and the aggregate
carrying capacity of our fleet has grown from 887,900 deadweight tons prior
to our initial public offering in May 28, 2008 to 3,019,700 dwt. The quality
and size of our current fleet, together with our long-term relationships with
several of our charter customers, are, we believe, the results of our long-term
strategy of maintaining a young, high quality fleet, our broad knowledge of
the drybulk industry and our strong management team. In addition to benefiting
from the experience and leadership of Polys Hajioannou, we also benefit from
the expertise of our Manager which, along with its predecessor, has specialized
in drybulk shipping since 1965, providing services to over 49 drybulk vessels.
In June 2008, we completed an initial public offering of our common stock in
the United States and our common stock began trading on the New York Stock Exchange.
Our principal executive office is located at Apt. D11, Les Acanthes, 6, Avenue
des Citronniers MC 98 000 Monaco. Our representation office in Greece is at
30-32 Avenue Karamanli, 16673 Voula, Athens, Greece. Our registered address
in the Republic of the Marshall Islands is Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960. The name
of our registered agent at such address is The Trust Company of the Marshall
Islands, Inc.
Our vessels are used to transport bulk cargoes, particularly coal, grain and
iron ore, along worldwide shipping routes. We may employ our vessels in time
charters or in voyage charters.
A time charter is a contract to charter a vessel for a fixed period of time
at a set daily rate and can last from a few days up to several years, where
the vessel performs one or more voyages between load port(s) and discharge port(s).
Based on the duration of vessel’s employment, a time charter can be either
a long-term, or period, time charter with duration of more than three months,
or a short-term, or spot, time charter with duration of up to three months.
Under our time charters, the charterer pays for most voyage expenses, such as
port, canal and fuel costs, agents’ fees, extra war risks insurance and
any other expenses related to the cargoes, and we pay for vessel operating expenses,
which include, among other costs, costs for crewing, provisions, stores, lubricants,
insurance, maintenance and repairs, tonnage taxes, drydocking and intermediate
and special surveys.
Voyage charters are generally contracts to carry a specific cargo from a load
port to a discharge port, including positioning the vessel at the load port.
Under a voyage charter, the charterer pays an agreed upon total amount or on
a per cargo ton basis, and we pay for both vessel operating expenses and voyage
expenses. We infrequently enter into voyage charters. Voyage charters together
with spot time charters are referred to in our industry as employment in the
spot market.
We intend to employ our vessels on both period time charters and spot time charters,
according to our assessment of market conditions, with some of the world’s
largest consumers of marine drybulk transportation services. The vessels we
deploy on period time charters provide us with relatively stable cash flow and
high utilization rates, while the vessels we deploy in the spot market allow
us to maintain our flexibility in low charter market conditions.
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