Seanergy Maritime Holdings Corp. has entered into a time charter contract (T/C) with a major European charterer, for one of its capesize dry bulk vessels, for a period of about 18 months to about 22 months.
The T/C is for the 180 000 DWT capesize vessel M/V Lordship and is expected to commence in June 2017, upon expiration of the vessel’s current T/C with the same charterer.
The net daily charter hire is index-linked rate based on the 5 T/C route rate of Baltic Capesize Index (BCI). In addition, the charter contract provides the option to Seanergy to convert at any time and for a period of minimum three months to maximum 12 months the index-linked rate into a fixed rate corresponding to the prevailing value of the respective capesize FFA.
Stamatis Tsantanis, the company’s Chairman and CEO, commented: “We are pleased to announce the time charter contract of M/V Lordship’s for a period of up to 22 months with a major European charterer. Our high quality of service has made us a preferred business partner to first-class charterers and we expect this to continue being a central pillar of our commercial strategy. Indicatively, based on the prevailing spot rate for capesize vessels, this time charter contract could contribute more than $10 million of net revenues to the company, assuming the full 22-month employment. Furthermore, the 5 T/C route rate associated with the agreement will allow us to benefit from the potential market upside, while our option to convert to a fixed rate provides us with the flexibility to lock into a profitable fixed rate for up to 12 months at any point.”
“As the freight market strengthens, we expect to secure additional long term employment agreements for our fleet,” concluded Tsantanis.