Performance Shipping extends aframax charter at lower rate

Greece’s Performance Shipping has extended the time charter contract for an aframax tanker with Glencore subsidiary ST Shipping & Transport.

The deal will see the deal for the 2011-built, 105,525 dwt tanker P. Monterey extended for 12 months. The charterer has the option to shorten or extend the deal by 30 days.

The extension started in mid-January. The vessel will work on a gross charter rate of $28,000 per day and is expected to generate around $9.38m in gross revenue for the minimum duration of the charter. The initial two-year deal for the vessel was for a higher rate of $32,000 per day.

The charter increases the company’s secured revenue backlog to approximately $62m, or $232m when including the five-year contracts for its three aframax LR2 newbuildings.

“Our fleet deployment now consists of six vessels operating under time charter arrangements and one vessel trading in the spot market through pool participation. Looking ahead, we remain constructive on the tanker market as we expect the redelivery of two more vessels from their period charters in the coming months,” said Andreas Michalopoulos, Performance Shipping CEO.