Capital Product Partners (CPP) has fixed two tankers to its sponsor company Capital Maritime & Trading Corp.
The LR3 tanker Miltiadis M II (162,397 dwt, built 2006) was fixed to the sponsor for 10 to 12 months at a gross daily rate of $25,000, commencing in August after its special survey. The vessel was earning $35,000 per day during its previous seven-month charter to Capital Maritime.
CPP’s suezmax Amore Mio II (159,982 dwt, built 2001) was also fixed to its sponsor company for the same period at $21,000. The vessel concluded an eight-month charter to Shell in June, during which it was earning a gross daily rate of $33,750.
Meanwhile, CPP’s MR chemical/product tanker Agisilaos (36,700 dwt, built 2006) has replaced Arionas (36,725 dwt, built 2006) on charter to Flota Petrolera Ecuatoriana (Flopec) at a gross daily rate of $19,000, so that Arionas can undergo its special survey.
“Regarding recent market developments, we note that while the demand fundamentals for tankers, and especially product tankers, remain solid on the back of refinery capacity relocation, increased tonne-miles and the low oil price environment, the increased supply of tanker vessels has recently weighed on spot earnings as well as on the tanker period market,” said Jerry Kalogiratos, CPP’s chief executive and CFO, in a release.
“However, the limited number of new tanker ordering thus far this year and the rationalization of excess shipyard capacity combined with solid industry fundaments are positive trends for the tanker markets in the medium- to long-run.”
Kalogiratos added that the 20% cut in charter rates recently negotiated with Hyundai Merchant Marine for three of CPPs boxships “represent a more favorable outcome given the alternative employment opportunities in the current weak container charter market”.