The latest acquisition, funded via internal accruals, will mainly carry iron ore in the dry bulk category. The vessel would generate a revenue of $12,000 per day as against an operational expenditure of $4,000 per day, Essar Shipping executive director Rajiv Agarwal told The Financial Express.

"We expect the improved freight market to continue its trend for the next one year at least. With winter round the corner, there is bound to be an increase in oil movement and other energy trade," Mr Agarwal added.

The company has opted for a foreign flag and has put both the vessels into operation, he said. There was a dilemma over the purchase of the second-hand vessel for some time on account of an anomaly due to the mis-interpretation of the Exim policy. The interpretation by the DGFT has made it unfeasible to procure second-hand ships whereby companies were left only with the option of going in for a foreign flag.

Vessels with Indian flags have the first right of berth on India ports while those with foreign flags have to opt for a permission from the directorate general of shipping everytime they land at the Indian coast. However, Mr Agarwal does not foresee this as a problem since there are no capesize vessels except the two left with Essar.

The capesize vessel procured in August is generating a revenue of $17,000 per day with an operation cost of $4,000 to $5,000 per day.The company is also in talks with foreign shipyards to acquire a very large crude carrier, Mr Agarwal said.