Performance Shipping announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Teekay Chartering Limited, for one of its Aframax tanker vessels, the 2011-built, 104,623 DWT, M/T Blue Moon.
The gross charter rate will be US$23,000 per day for a period of 24 months +/-30 days at the option of the Charterer. The new charter commenced yesterday and is expected to generate approximately US$16.8 million in gross revenue.
Commenting on the charter, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our commercial management strategy for our tanker vessels is focused mainly on spot market deployment via voyage charters or participation in Aframax tanker pools that provide our shareholders with exposure to cyclical fluctuations in charter rates. However, considering recent market developments, this attractive time charter rate and our valued relationship with Teekay Tankers, we took this opportunity to secure a significant level of fixed revenue for one of our vessels.”