Photo: Herman Billung
Bermuda-based Himalaya Shipping, a dry bulk owner, said on Thursday that has fixed on long-term charter one vessel, which means employment is in place for the entirety of its 12-vessel fleet.
The shipowner didn’t disclose the name of the charterer involved, but mentioned that it is “a major Japanese shipping and logistics company.”
The vessel will commence a 24-month time charter with an evergreen structure upon delivery from New Times Shipyard in the first half of 2024.
In accordance with Himalaya, the vessel will earn an index linked rate, reflecting a significant premium to the Baltic 5TC index, and 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.
Separately, another of Himalaya’s charterers has agreed to extend its existing contracts on six vessels by an additional year until the end of 2026.
The company didn’t reveal the name of the charterer but mentioned that it is “a major commodity trading company.”
With this deal the shipowner has secured employment for its entire fleet.
As it is reported, with one vessel on fixed time charter, and the remaining eleven vessels fixed on index linked charters, the company will on average earn a premium of 42.25% to the Baltic 5TC.
Herman Billung, contracted chief executive of Himalaya Shipping, said: “Himalaya Shipping has now fully fixed its entire fleet. We are pleased that our vessels are achieving market high premiums and the fact that one of Himalaya’s counterparts is showing further commitment based on the quality of the fleet and the experience gained so far trading the ships.”
“Our simple structure, with index linked charters earning a significant premium, low G&A cost and financing with 7-year fixed bareboat rates puts us in a good position to deliver solid returns to our shareholders.”
Himalaya Shipping has ordered twelve LNG dual fuel newcastlemax dry bulk carriers, six of them delivered this year, and the remaining six to be delivered by the third quarter of 2024.
