Shinyo International Group, the company of Taiwanese shipping entrepreneur Fred Cheng, is said to be behind the purchase of two Capesize bulkers in recent weeks.

According to shipbroking sources, Shinyo, registered in the British Virgin Islands and operating out of Tokyo, has reportedly bought the 2005-built Bulk Singapore for US$10m from Singapore-registered Japanese owner Celeste Holding Pte Ltd, as well as the same-age Cape Grace for US$11.9m from Japanese owner Doun Kisen.

"Current Capesize timecharter rates have plunged from over USD20,000 a day two years ago to around USD5,700 a day in the current market," said a Singapore-based broker. "So some charterers think that having the ship for a year or two is a very good deal."

A source at a major commodity trading house confirmed that it is in talks with Shinyo to fix one of the two Capesizes.

"Our cargo volumes are substantial, so if we can hedge against an improving freight market for the next two years, it's worthwhile," the source said.