Monday, February 09, 2009
Korea Line agrees lower rate with Hellenic Carriers
Michelle Wiese Bockmann - Monday 9 February 2009
FINANCIALLY troubled dry bulk operator Korea Line has renegotiated a 37% drop in its time charter rate for Hellenic Carriers’ 50,326 dwt, 2000-built bulk carrier Konstantinos D.
After negotiations lasting one month, London-listed Hellenic Carriers today said it had agreed to drop the rate from $56,250 per day, to $35,000 per day.
“Korea Line has approached most owners of ships that they have had under time charter (to renegotiate),” said Hellenic Carriers chief executive Fotini Karamanlis.
“The decision we made was to reduce the hire rate, which was at levels above the current spot and period rates, in order to help them with their cash flow.”
The troubled South Korean-based owner and operator had defaulted on a number of contracts with Greek and Asian owners and charterers after the freight market collapse, including Worldlink and Glory Wealth.
Negotiations between Korea Line and other shipowners in Piraeus were currently underway, Ms Karamanlis said, to renegotiate hiring terms for ships chartered during the boom times of late 2007 and early 2008.
“I know of many owners here in Piraeus who have had similar discussions with them and have heard that many owners have agreed to reduce the rate and reduce the duration of charters,” she said.
A number of listed companies have tonnage on charter to Korea Line, including Eagle Bulk Shipping, which has 10-year agreements for its newbuilding fleet of supramaxes at rates between $17,000 and $19,000 per day.
Under the deal struck with Hellenic Carriers in March 2008, Korea Line took the supramax for 24-26 months. Under the new deal, the time charter period has been extended by 10 months, to expire in January 2011.
Ms Karamanlis said there was an option to terminate the charter in 2010, if the market rate was higher than $35,000 per day.
Asked if any other charterers of ships owned by Hellenic Carriers had asked to renegotiate terms, Ms Karamanlis said: “I cannot comment on anything else. We are a listed company,” and hence was prevented from discussing such matters without making an announcement to investors.
This is the second time that Hellenic Carriers has renegotiated rates. Last January the 69,601 dwt, 1993-built Hellenic Breeze was cut from its rate of $71,000 per day to $24,000 per day for the remainding three months of its 11-13-month charter to Rizzo Bottiglieri-De Carlini. The panamax charter was extended at the lower rate for a further two years, from May 2009.
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