Seanergy Maritime Holdings Corp., announced that it has entered into a time charter contract with a major European charterer, for one of its Capesize dry bulk vessels, for a period of about eighteen months to about twenty-two 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.
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 twelve 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 & Chief Executive Officer, commented: “We are pleased to announce the time charter contract of M/V Lordship’s for a period of up to twenty-two 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.”