Croatia’s Tankerska Next Generation (TNG) has tied up one of its eco MRs on a four-year charter at a rate beating current spot levels.
The Zagreb-listed owner of six product tankers said the 50,000-dwt Dalmacija (built 2015) comes with a charterer’s option to extend for a further 12 months.
The initial rate will be $16,000 per day from early this month, with the optional period at $19,000.
The charterer is a “global energy and commodities firm,” the company said.
“The negotiated deal thoroughly represents the company’s strategic concept that focuses on the determination to secure a strong asset base and stable cash flow,” TNG added.
The aim is to minimise risk by mixing time charters and spot operations.
The Dalmacija has been operating spot from July 2020.
Clarksons Platou Securities currently assesses MR spot rates at $13,600 per day, up 6.6% over the last month.
Two other TNG ships are coming off deals this year and in 2023 at $12,250 and $17,050, respectively, with Gunvor and ExxonMobil.
The company called 2021 markets “miserable”, with product tankers depressed “over more quarterly earnings reports than anyone in shipping cares to remember.”
Cash burn-out
“As a result, the intensified cash burn-out created additional tensions among tanker owners. This was bridged by liquidity lifelines in the hope for a steady stream of older tonnage being discarded in the foreseeable future giving a boost to the market recovery,” TNG added.
The net loss in the fourth quarter was down a fraction from $10.1m in 2020 to $10m last year. Revenue grew from $8m to $11.9m.
