Himalaya Shipping secures charter deals for two LNG-fueled bulkers

Tor Olav Trøim’s Himalaya Shipping has secured charter deals for two out of its twelve LNG-powered Newcastlemax bulk carriers currently under construction in China.

Himalaya said in a statement on Friday it had entered into time charter agreements with “one of the major commodity companies, a company also committed to energy transition”.

According to the firm, the vessels would start a 32-38 month time charter, plus option for 11-13 month, upon delivery from New Times Shipyard.

The vessels would earn an index linked rate, reflecting a significant premium to the Baltic 5TC index, it said.

Himalaya said the time charters also include a profit sharing of any economic benefit derived from operating the vessel’s scrubber or running on LNG, as well as certain rights to convert the time charters to fixed rates based on the prevailing FFA curve from time to time.

In “advanced” talks for other vessels

“The first charter agreements agreed on our vessels shows the attractiveness of our design and fuel consumption,” Herman Billung, contracted CEO of Himalaya said in the statement.

He said that, based on current Capesize spot index rate, the premium to index and the scrubber benefit, today the company estimates that the vessels could generate time charter equivalent earnings of about $35,000.

“The Capesize equivalent cash breakeven is estimated at approximately $14,000 per day when all vessels are delivered,” Billung said.

He added that Himalaya was in “advanced discussions” about securing further employment for the company’s fleet.

Earlier this year, Himalaya said it had completed financing for the twelve 208,000-dwt LNG dual-fuel bulk carriers.

Himalaya plans to take delivery of the 300 meters long ships in the period spanning from April 2023 until October 2024.

The sister ships will feature MAN ME-GI propulsion but also two type C LNG tanks with a total capacity of about 7,500 cbm.

Himalaya also recently decided to install scrubbers (EGCS) on the entire fleet.

Most Popular

Venture Global’s Plaquemines LNG terminal achieves first production

Venture Global announced on Friday it had reached first LNG production at the company’s second facility, Plaquemines LNG, in...

Spot LNG rates remain weak

“Spark30S rates rose for a fourth consecutive week, increasing marginally by $750 to $23,500 per day,” Qasim Afghan, Spark’s commercial...

Swan Energy, Nebula’s AG&P LNG plan Indian JV

Swan Energy said on Friday it had signed a heads of agreement with AG&P Terminals &Logistics (Singapore). The two firms...

More News Like This

Himalaya’s LNG-fueled bulkers earned $31,300 per day in November

LNG-powered bulker owner Himalaya Shipping achieved average time charter equivalent earnings of about $31,300 per day in November. The shipping...

Maersk orders 20 LNG-powered containerships in China and South Korea

Maersk confirmed the orders in a statement on Monday saying the vessels have a capacity of 300,000 teu. With these...

NTS delivers MSC’s LNG-powered containership

China’s New Times Shipbuilding has delivered MSC's LNG dual-fuel containership, MSC Ivory Coast. NTS hosted the naming and delivery ceremony...

Germany’s Hapag-Lloyd orders 24 LNG-powered containerships in China

Of these, Yangzijiang Shipbuilding will build 12 vessels each with a capacity of 16,800 teu, according to a statement...