China's SITC has made its first foray into the dry bulk sector as an owner, having reportedly placed a newbuilding order for five 76,600 dwt panamaxes with Yangfan Group shipyards.
A newbuilding broker said the acquisition of the vessels, which are reportedly due for delivery between April 2012 and September 2013, was “a very brave move”. 
The company moves into the dry bulk sector as panamax rates are floundering, with the Baltic Exchange reporting the average time charter daily rate at $14,181 on Tuesday.
However, with newbuilding prices for similar-sized panamaxes as reported by Clarksons at the lowest level seen since 2004, the investment could prove a valuable one if rates improve.
According to broker estimates, the panamaxes will cost the company anywhere between $150m and $170m, likely paid for in cash.