Athens-based international shipping company, OceanPal Inc. has announced a new time charter contract for their Capesize dry bulk vessel, the M/V Baltimore, with Richland Bulk Pte. Ltd. The announcement was made on April 30th, 2024. The agreement means the vessel will be leased for a specified period, where it would be utilized for Richland Bulk’s commercial operations.
OceanPal Inc. a company listed on NASDAQ (NASDAQ: OP) and specializing in the ownership of vessels, executed this deal through a fully owned separate subsidiary. As per the contract details, the gross charter rate has been set at US$22,000 per day. A 5% commission will be subtracted, paid to third parties, but it marks a significant rise over the vessel’s current gross charter rate with the same company. The current charter rate stands at US$13,500 per day, minus a 5% commission.
The duration of this new charter extends from a minimum period, ending on September 15, 2024, to a maximum period lasting till November 15, 2024. The commencement of this charter is slated for mid-May, revealing a short interim between the agreements.
The M/V Baltimore is currently chartered to Richland Bulk Pte. Ltd. retaining the same commercial agreement while adjusting the charter rate and time period to reflect the new terms. The details of procurement for the vessel, the current charter, and the extended contract reflect the ongoing operations and future strategy of OceanPal Inc.
The implications of this new contract highlight the possible commercial gains with a higher charter rate and a more extended duration. This represents a positive development for OceanPal Inc. and signifies a dynamic and robust working relationship with Richland Bulk Pte. Ltd.
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