Himalaya Shipping has entered into time charter agreements for two vessels with a major commodity trading company.
The vessels will commence a 24-month time charter with an evergreen structure upon delivery from New Times Shipyard in the first half of 2024. The vessels 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.
The company has fixed 1 of its vessels on fixed time charter and the 10 vessels fixed on index-linked charter will on average earn a premium of 42% to the Baltic 5TC.
“We are pleased that our vessels are achieving market high premiums. 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”, says Herman Billung contracted CEO of Himalaya Shipping.