Norden recharters vessels at lower rates
SHIPPING: The Tanker Department at Norden has extended its cooperation with Turkish Geden Lines on chartering of 7 Handysize product tankers for another year. Rates are 40-45% lower on average than the contracts which have now expired.
The first contract, which was concluded earlier this year, comprises the 4 product tankers Acor, Carry, Rova and Cotton. The latest contract, which has just been concluded, comprises the 3 product tankers Cargo, Rock and Rocket. The original contracts reflected a strong 3-year market before the financial crisis of typically 19-21,000 dollar per ship day, whereas the new contracts reflect the decrease in the period market where a 1-year charter of this vessel type is estimated to be around 11-12,000 dollar per ship day.
Norden concluded the first contracts with Geden Lines for the 7 Handysize vessels in 2006 and 2007, respectively – with delivery of the vessels in 2007 and 2008. At that time, the contracts were concluded for 3 years at a time. The new contracts are 1-year contracts and reflect the many deliveries to the world fleet in previous years and the generally lower rates in the tanker market in the wake of declining demand for refined oil products resulting from the crisis.
”In cooperation with Geden, we have found a solution where they get the opportunity to extend their charters to us in a challenging market, and the vessels are made available to us at reasonable rates”, says Senior Chartering Manager Andrew McPhail in Norden's Tanker Department.
The 7 product tankers are all in the popular 37,000-38,000 DWT design and were built in 2007 and 2008 at the yard Hyundain Mipo, Korea. The vessels primarily sail in Europe and are operated together with Norden's owned Handysize tanker vessels through Norient Product Pool. The pool operates a total of 72 vessels from Norden and Interorient Navigation Company Ltd. of which 43 are Handysize, 26 MR and 3 LR1. Furthermore, Norient Product Pool has 4 MR tankers on order for delivery during the next 2 years.
Kilde: Norden / maritimedanmark.dk
