7.2 Combination carriers

The cabu vessels are combination vessels that transport both dry cargo and caustic soda in the Far East, the Middle East and Australia. The cabu pool consists of six cabu vessels and one LR tanker. One external investor holds 50% in two vessels and 19% in one vessel.  The pool result for 2013 remained stable at a satisfactory level. The vessels are largely employed on long term contracts of affreightment with customers in the Australian alumina industry and this accounted for about 63% of the available vessel days, while spot or market based cargoes, which are mainly north-bound from Australia to the Far East or Middle East accounted for 37% of the available vessel days in 2013.

Towards the end of the year Klaveness negotiated a contract with Zhejiang OuHua Shipbuilding Co. Ltd. in China for an order of two 80,500 DWT combination carriers, which was finally concluded at the beginning of 2014. The vessels are estimated to be delivered in the third and fourth quarter of 2016 and will be part of the cabu fleet of vessels. The contract includes options for further vessels, declarable in 2014.

Several contracts were renewed in 2013, securing continued good working relationships with key customers and contributing positively to the cabu fleet’s performance going forward

Klaveness reached a global settlement with Alba (Aluminium Bahrain) where both parties waived their financial claims towards each other in January 2014. The parties re-established their business relations by entering into a new long-term freight contract.