Diana Shipping has fixed two Newcastlemax bulkers on period charter as capesize rates continue to dwindle.
The 208,021-dwt Newport News (built 2017) was fixed to Geneva-based SwissMarine Services for 16 to 19 months at a gross daily rate of $16,500, commencing today.
The contract’s net rate is $15,675 per day, after 5% commission is paid to third parties.
Another Newcastlemax, the 206,104-dwt Los Angeles (built 2012), was chartered to SwissMarine for 15 to 18 months at a gross daily rate of $13,250 or $12,588 per day minus commissions.
The contract is due to commence on 3 March, Diana said.
In contrast, the last Newcastlemax fixed out by Diana is currently earning $20,000 per day while on charter to Koch Shipping.
The 206,040-dwt Philadelphia (built 2012) was fixed to the commodity trader for two years at the end of June 2018.
Capesize period market
Twelve-month period deals for capesizes may have been fixing around $15,000 daily at the end of January, but are now in danger of falling below the $10,000 level, according to Baltic Exchange fixtures data.
At the end of last week, Diana Shipping reportedly fixed its 177,729-dwt cape Houston (built 2009) to Koch Shipping for 14 to 17 months at $10,125 daily or $9,619 per day, net of commission.
Around the same time, brokers reported that Dong A Tanker achieved a rate of just $11,000 daily when it fixed its 179,300-dwt cape Dong A Oknos to Indonesia's Jaldhi for nine months, which commenced on 19 February.
Dong A Oknos was earning $16,500 daily on its previous year-long contract to Louis Dreyfus, which included a $330,000 ballast bonus at the time of fixing on 4 January, 2018.
In the spot market today, the Baltic's weighted timecharter average rate for its five major capesize routes was on Monday assessed at $5,747 daily, the lowest level seen since 16 February, 2017.
