Monday, December 01, 2008
FreeSeas charters oldest vessel despite tough market
Paul Tugwell, Athens - Monday 1 December 2008
FREESEAS, the Piraeus-based owner and operator of handysize and handymax dry bulk carriers, is still managing to secure charters for its oldest vessel, although at lower rates.
The 1982-built, 25,240 dwt Free Destiny has been delivered to its charterers for a spot voyage of around 35 days, the Nasdaq-listed company said.
However, the difficult trading conditions in the dry bulk market are evident in the ship’s charter rate of $3,250 per day.
The ship had previously been employed on a 40-day spot charter at a rate of $18,000 per day.
The charter was achieved despite a “virtual standstill in the freight market” and “this rate enables us to keep the vessel employed while the freight market stabilises,” said president and chief executive officer Ion Varouxakis.
“Our other eight vessels, which are all employed on accretive charters, are still operating at their previously announced rates which effectively cover the company’s obligations, including debt service,” he said.
“We expect the freight rate environment to improve in the short term.”
FreeSeas has a fleet of seven handysize vessels and two handymax bulkers, with an average age of just under 11 years.
The company said its decision to specialise in the handymax and handysize sectors meant it is better placed to take advantage of market opportunities arising from the current economic slowdown.
“We have always felt that these sizes are less volatile due to their trading versatility and have very favourable demographics due to an ageing fleet and relatively small orderbook,” Mr Varouxakis recently told Lloyd’s List.
As adapted from Lloyds List
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