Sino-Global Shipping America, Ltd. (NASDAQ: SINO) (Sino-Global), a non-asset based global shipping and freight logistic integrated solution provider, yesterday announced that it has signed bareboat charter contracts with two "Handysize" vessels capable of carrying between 40,000 – 50,000 deadweight tons of dry-bulk.
Both vessels were built in the 1990s and will serve the purpose of carrying dry-bulk products, such as fertilizer raw materials and sulfur, to and from ports in the United States and China.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "In recent weeks, we have signed an important MOU with Yunnan Jingyifeng Supply Chain Management ("JYF") to meet the increase in export demand. While we are ramping up exports under that agreement, we felt it was prudent to secure vessels that would help to meet that demand and also provide Sino-Global versatility to sub-charter these vessels for immediate revenue as necessary. We expect we can deploy both vessels on the spot market at approximately $7,500 - $8,500 per day based on given rates, which given the recent increase in the Baltic-Dry Index made prudent financial sense. In addition, this provides the Company with the option to operate these vessels directly as we accelerate shipments under the MOU in the second half of calendar 2020. We will continue to position the Company to take advantage of a relatively unique situation following the trade agreement earlier this year."