TelestackTOC EventsThe Wolfson Centre for Bulk Solids Handling Technology Port of South LouisianaPort of StocktonCoaltrans Virtual World Coal Leaders Network 2020
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Coaltrans Virtual World Coal Leaders Network 2020
  • Port of South Louisiana
  • Sailors Society
  • TMS Webinar Series COVID-19: A Leadership Perspective - ‘Container Terminals in the Pandemic - Rapid bounce back or slow recovery?
  • Bühler GmbH

Seanergy’s scrubber deal with bulk charterers

Seanergy’s  scrubber deal with bulk charterers

(Posted on 01/11/18)

Seanergy Maritime Holdings Corp has announced that it has entered into commercial agreements for the installation of exhaust gas cleaning systems (“scrubbers”) on five of its capesize bulk carriers before the January 1, 2020 implementation date of the IMO sulfur emission cap regulations.

Seanergy is an international shipping company that provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels.

Upon completion of the installations scheduled for Q2 and Q3 2019, the vessels will commence index linked period employment with three leading dry-bulk charterers ranging in durations between three and five years.

The Company has secured the scrubber equipment from Hyundai Materials, a well-known Korean manufacturer and has reserved retrofitting slots at an experienced dry-dock facility in China. The total investment, to be covered by the charterers, is expected to exceed $12.5 million, including equipment and installation costs.

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated: “We are very excited to announce these commercial agreements which should result in approximately $12.5 million accretion in our NAV. We believe that the significant investment that will be implemented in full cooperation with our charterers represents a balanced and comprehensive approach towards the new environmental regulations scheduled to become effective as of January 1, 2020. “Such strategic direction comes after careful consideration of the various aspects of the new regulations and their implications in our sector, given that Seanergy was one of the first Greek dry-bulk companies to conclude a feasibility study on scrubbers, in cooperation with the American Bureau of Shipping (ABS). “This significant investment by our charterers, in combination with innovative charter agreements, is expected to increase the market value of the subject vessels without our Company incurring additional debt or diluting our shareholders. “It is important to further note that the underlying time-charters are index linked, maximizing Seanergy’s exposure to the positive fundamentals and outlook of the Capesize market. Moreover, through profit sharing agreements calculated on the spread between high and low sulfur fuel, we believe we will be able to capitalize on short-term distortions in the bunker market. “We aim to complete the installations of the scrubbers during 2019 before the IMO 2020 regulations come into force. Finally, upon implementation of the new IMO regulations, all of Seanergy’s fleet will be fully compliant with the new rules.” Details of the Agreements: A. M/V Partnership and M/V Lordship The Company has entered into two time charter agreements with a major European utility company, for M/Vs Partnership and Lordship, for a firm period of 33 to 37 months plus one additional period of 11 to 13 months at charterer’s option. B. M/V Premiership and M/V Squireship.

The Company has entered into two time charter agreements with a leading multinational commodity trading and mining company, for the M/Vs Premiership and Squireship, for a firm period of 36 to 42 months plus two additional periods of 11 to 13 months at charterer’s option. C. M/V Championship. The Company has entered into an agreement for the sale and leaseback and a five year time charter with a large international commodity trading company for the M/V Championship, for a firm time-charter period of 60 months plus an additional 18 month period at charterer’s option. The latter two agreements are subject to the conclusion of definitive documentation.

The daily hire on all three agreements is index-linked rate based on the 5-routes T/C average of the Baltic Exchange Capesize Index.

Latest News

North to enhance routing risk advice

(Posted on 23/10/20)

Leading international shipping insurer North P&I Club has launched a new marine risk awareness solution... Read more


IMEC commissions Ocean to develop competencies for Ratings

(Posted on 23/10/20)

The International Maritime Employers’ Council (IMEC) has commissioned Ocean Technologies Group... Read more


Piracy increasing off West Africa

(Posted on 18/10/20)

ICC International Maritime Bureau (IMB) figures show a rise in piracy and armed robbery on the world... Read more


CCS fleet grows to 155m GT

(Posted on 16/10/20)

China Classification Society (CCS) grew its serviced fleet to 34,974 vessels in 2019, marking another... Read more


Pandemic has some positive effects on training

(Posted on 16/10/20)

Leading international catering management and training provider, MCTC has revealed that COVID-19 has... Read more


INTERCARGO address key issues

(Posted on 12/10/20)

The International Association of Dry Cargo Shipowners (INTERCARGO) has held its Annual General Meeting... Read more


Jones steps down as BRS chairman

(Posted on 12/10/20)

The BRS Group has a new chairman. As the partnership agreement stipulates, on reaching the age of 65... Read more


Høglund and Veracity to collaborate

(Posted on 12/10/20)

Høglund Marine Solutions (Høglund) and Veracity by DNV GL (Veracity) have signed a collaboration... Read more


German Shipowners welcome LNG investments

(Posted on 07/10/20)

“As one of the world’s major shipping nations, Germany needs an LNG infrastructure for its... Read more


Thome and Carsten Rehder agree JV

(Posted on 07/10/20)

The Thome Group and Carsten Rehder have agreed to cooperate in a joint venture.Under the agreement,... Read more


TMS Webinar Series COVID-19: A Leadership Perspective - ‘Container Terminals in the Pandemic - Rapid bounce back or slow recovery?Sailors SocietyViganTBA GroupChina Coaltrans 2020Port of Vancouver USA
  • China Coaltrans 2020
  • TOC Events
  • Cimbria
  • Port of Stockton

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping