Himalaya Shipping pens charter deal for one LNG-powered bulker

Tor Olav Trøim’s Himalaya Shipping has secured a charter deal for one LNG-powered Newcastlemax bulk carrier it ordered at China’s New Times Shipyard.

Himalaya said in a statement on Monday it had entered into the deal with a “major Japanese counterpart”.

Moreover, the vessel would start a two-year time charter upon delivery from New Times in March/April 2023.

The parties have agreed a fixed time charter of $30,000 per day, gross, throughout the period, according to Himalaya.

Prior to this deal, Himalaya already chartered six out of the twelve 208,000-dwt LNG dual-fuel bulk carriers.

China’s New Times recently launched two out of the twelve ships as well, namely Mount Norefjell and Mount Ita.

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

“We are excited to be able to fix a ship significantly above our cash break-even, even with the 2023/2024 Capesize FFA rates being at $14k/day,” Herman Billung, contracted CEO of Himalaya Shipping, said in the statement.

“Himalaya Shipping have in addition to this fixed charter already chartered out six vessels on index-linked charters. Our simple structure, with mostly index-linked charters to achieve market high premium to the Baltic 5TC index, low G&A cost and a financing with seven-year fixed bareboat rates puts us in a good position to deliver solid returns to our shareholders,” Billung said.

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