John Fredriksen’s Avance Gas has secured a term deal for one of its VLGCs at a higher rate in rising markets.
The Oslo-listed owner said the 84,000-dwt Pampero (built 2015) is on a one-year contract to November.
The unnamed charterer has now agreed a minimum 21-month extension in direct continuation.
Avance Gas said the charter would add $29m to its backlog.
This works out at about $44,500 per day. The rate is fixed.
The company’s chief executive Oystein Kalleklev told a conference call earlier this week that the company was now looking to “adjust” its time charter coverage, after focusing on spot exposure last year due to weak sentiment heading into 2023.
He said spot rates are around $65,000 per day on average currently.
The latest deal secures employment for the ship up to its 10-year special survey in the third quarter of 2025.
The charter can be extended by a year after this.
Kalleklev said the shipowner has a very good relationship with its client.
“Given the improved market, we are also able to re-price the ship with a stronger rate for a longer period,” he added.
Two other VLGCs come off deals in the fourth quarter, while another expires in January.
“This gives us the opportunity to re-contract ships in a significantly improved freight market compared to when these time charters were agreed, as evident from the Pampero fixture,” said the CEO.
