Pangaea wins $135m COA for ice-class vessels

Pangaea wins $135m COA for ice-class vessels

Athens: Pangaea Logistics Solutions has won a contract of affreightment (COA) worth up to $135m from a “a major international steel producer”.

The contract provides for up to 30 shipments per year for up to five years, generating close to $1m in revenue per voyage, the NASDAQ-quoted company said today.

Revenue could top $80m in the first three years and total up to $135m over its maximum five-year term.

The COA will employ ice-class tonnage operated by Pangaea’s subsidiary, Nordic Bulk Carriers, which has a fleet of four panamax and two handysize bulk carriers, all of which are ice-classed.

The ships will load on the east coast of Canada and discharge in Europe, Pangaea said. The first shipment due for loading this summer.

“Today’s announcement showcases how our unique expertise in the ice-class trades allows us to secure high-value COAs that are mutually beneficial to us and our partners, despite the ongoing turbulence in the dry bulk markets,” said Ed Coll, chairman and CEO of Pangaea Logistics Solutions.

“We are very pleased by today’s announcement and look forward to continuing to grow our business with a focus on accretive and stable COAs related to specialised trades where our differentiated capabilities allow us to add meaningful value.”

In 2010,  Nordic Bulk Carriers became the first operator to use the Northern Sea Route through the Arctic Ocean, north of Canada. In 2013, the company’s vessel Nordic Orion became the  first bulk carrier to traverse the Northwest Passage carrying coal from Vancouver to Finland.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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