Golden rejigs cape deal

Golden Ocean has restructured a time charter deal for its capesize newbuilding Golden Beijing which is being delivered later this week.

The new agreement includes $6m in cash paid upfront by the charterer in return for a 25% reduction in the time charter rate.

Golden Ocean said the move was designed to “secure the cash flow from the time charter contract and to reduce the counterparty risk”.

The new deal now includes a fixed time charter rate of $33,050 per day along with an undisclosed profit share.

Under such a structure Golden Ocean said there would be “significant upside” for it in case of a continued strong market.

The five-year charter was first agreed in April 2008 at a daily time charter hire of $51,000 less 5% total commission.

The ship is the first of the series of capesize bulkers building at China’s Jinhaiwan Shipyard. The identity of the charterer was not disclosed.

Golden Ocean has already seen Trustworth Shipping of Singapore renege on the charter of the second ship in the series, the Golden Future.

That ship has just been fixed for three years at $31,500 less 5% total commission, reportedly to Cosbulk.

Golden Ocean also confirmed that it has fixed the 75,000-dwt Ocean Minerva (built 2007) for three years at $21,800 per day less 5% total commission.

TradeWinds reported last month that the ship had been fixed to Grand China. The vessel is on long term time charter contract to Golden Ocean at $9,975 per day.

The agreed time charter further reduces Golden Ocean’s cash break even costs for its open tonnage and secures in excess of $11m in additional net income over the charter period.

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