US dry bulk firm Pangaea Logistics Solutions has reported the expansion of a current contact of affreighment (COA) deal as well as the signing of a new COA in a business update overnight.
Pangaea said it has amended a COA for the Gulf of Mexico with a major European steel company that is scheduled to begin in September. The contract has been increased from 400,000 metric tons to 700,000 metric tons for the first year with the potential for the increase to continue for the remainder of the five-year COA. This deal is worth around $20m in gross revenue over the total contract period with the potential to reach $29m.
The company also has signed a new logistics based COA to provide transportation of around 3.5 million tons of construction material to a port on the US east coast. The contract will also commence in September utilising four ultramax vessels and is worth around $29m over 14 months.
Ed Coll, CEO of Pangaea Logistics Solutions, commented: “We are extremely pleased to announce these two new pieces of business that leverage our unmatched expertise in providing solutions to unique logistics challenges. They will not only contribute directly to our continued growth but they will also serve as strong platforms for further expansion into strategic geographic areas and new types of business for the company.”
Pangea also announced the addition of two supramax vessels to its fleet under a profit sharing arrangement with the owner, US-based Icon Investments. The vessels, Bulk Power and Bulk Progress, have been delivered and their employment arranged.