Norwegian bulk carrier operator Gearbulk is renegotiating charter rates with Japanese shipowners who have their vessels on long-term charters to the company as part of cost reduction measures.
The company said a number of the charter contracts made in earlier years are based on newbuilding prices and rates which are no longer sustainable going forward.
“The unforeseen and unfortunate pandemic crisis adds further strain on an already difficult international business environment, and everyone needs to adjust their expectations and adapt to this new reality. It is adapt quickly or die slowly,” said Gearbulk chairman Kristian Jebsen.
“We trust our Japanese partners will support this measure and adapt to this new reality, as other stakeholders in Gearbulk are doing,” Jebsen added.
According to Gearbulk, over the last few years the company implemented effective counter-measures through a substantial cost reduction program, a wide-reaching organisational restructuring, a bank debt rescheduling as well as a sale-and-lease-back program for several vessels in its fleet.
Gearbulk mainly operates in the open hatch bulk shipping segment, controlling a fleet of about 70 open hatch, other specialised and conventional vessels. The fleet is commercially operated by the G2 Ocean pool, where Gearbulk is the majority owner.
