Norwegian owner Belships has entered into a letter of intent for the acquisition of a new Ultramax bulker.

The ship is expected to be delivered upon completion of construction at a Chinese yard in the last quarter of this year, and will be financed via a seven-year bareboat charter. Belships is paying $2.9m upon signing the contract next month, and the agreement comes with purchase options that can be exercised after the third year until the end of the charter.

The cash breakeven for the vessel is about $10,900 per day including operational expenses.

Belships will have a fleet of 24 bulk carriers, with an average age of five years, upon completion of all outstanding transactions.