Chinese bulker operator Jinhui Shipping and Transportation is expanding its fleet with its first long-term charter-in deal this year.
The Oslo- and Hong Kong-listed company, better known for its secondhand sale and purchase activities, has contracted a 2016-built ultramax named Pacific Lilly for at least 22 months from the Singapore-based unit of Chinese enterprise Zhejiang Shipping.
The deal, worth about $10m or $16,500 per day, will see the Marshall Islands-flagged, 61,452 dwt ship delivered by May 8, coming with options to extend the charter by an additional two months.
This will be the company’s third chartered-in vessel that will add to 24 owned bulkers and follows on from the 2021-built kamsarmax Ever Shining contracted on charter in December.
Commenting on the latest move, Jinhui said that locking in a long-term contract with minimal hire has the benefit of bypassing inflationary pressure on borrowing costs and other cost variations that the company has to bear by outright acquisition of the vessel.
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