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.

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