Essar Shipping Ltd has added a Panamax vessel of 74,005 Deadweight Tonnage (DWT) to its fleet of vessels.

With this new induction, Essar Shipping now has a fleet of 14 vessels that include VLCCs, Capesizes, Mini-capes, Panamax, Supramaxes and Handysize bulk carriers. Essar Shipping’s total DWT capacity now stands at 1.6 million and its average fleet age has fallen to 12 years from erstwhile 13.5 years, according to a company statement here on Tuesday.

The newly-acquired 2,000-built Panamax bulk carrier has been rechristened ‘MV Mahavir’. It will be deployed for transporting pellets, coal and limestone from Essar Steel’s pellet plant in Paradip, Odisha, to the steel plant in Hazira, Gujarat, said Ranjit Singh, Executive Director and CEO, Essar Shipping.

“This acquisition is in line with our strategy to find cargo before acquisition to ensure full utilization of the vessel. Last month, Essar Shipping de-commissioned, MV Chandi Prasad which sailed for 28 years and MV Mahavir is a perfect replacement.”

In FY2016-17, ESL reported 22% growth in cargo handling, whereas its capacity utilisation grew to 94% from 80%. The Baltic Dry Index, a key indicator of freight rates, has also gone up by four times—from an all-time low of 290 (in February 2016) to a high of 1,300 (in March 2017).