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 & 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.
Stamatis added: "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," Stamatis concluded.
The Company currently owns a modern fleet of ten dry bulk carriers, consisting of eight Capesizes and two Supramaxes, with a combined cargo-carrying capacity of approximately 1,503,369 dwt and an average fleet age of about 8.2 years.