FreeSeas Announces Charter Agreements on Six of Its Handysize Vessels at Rates Reflecting Strong Market Conditions
PIRAEUS, Greece, May 11, 2010 (GlobeNewswire via COMTEX) - FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) ("FreeSeas'' or the "Company''), a transporter of dry bulk cargoes through the ownership and operation of a fleet of eight Handysize vessels and two Handymax vessels, announced today new charters for six of its vessels.
Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas, stated, "We are pleased to report steadily improving rates for our vessels and we continue to build on our spot chartering strategy. We believe that our fleet is well-positioned to take advantage of the current upturn in the dry bulk market, as a result of our strategic decision last year to operate our Handysize vessels in the spot market. We are encouraged with the recent demand-driven improvement in the dry bulk market, especially for Handysize vessels, as evidenced by the considerable gains shown by the Baltic Dry Index recently. We remain focused in our effort to enhance our cash flow and strengthen our financial position."
The new charters are detailed below:
• The M/V Free Envoy, a 1984-built, 26,318 dwt Handysize vessel, has been chartered for a time charter trip of approximately 30 days at a daily rate of $15,000.
• The M/V Free Goddess, a 1995-built, 22,051 dwt Handysize vessel, has been chartered for a time charter trip of approximately 15 days at a daily rate of $14,000. The vessel commenced this new time charter following its completion of a time charter trip of approximately 18 days at a daily rate of $15,500.
• The M/V Free Hero, a 1995-built, 24,318 dwt Handysize vessel, has been chartered for a time charter trip of approximately 40-45 days at a daily rate of $18,000.
• The M/V Free Impala, a 1997-built, 24,111 dwt Handysize vessel, has been chartered for a time charter trip of approximately 30 days at a daily rate of $20,000.
• The M/V Free Knight, a 1998-built, 24,111 dwt Handysize vessel, has been chartered for a time charter trip of approximately 25-30 days at a daily rate of $15,500. The vessel is expected to be delivered to its new charterer following its scheduled dry-dock, which is expected to be completed shortly.
Fleet Employment Data Vessel Name Type Built Dwt Employment M/V Free Destiny Handysize 1982 25,240 45-55 day time charter trip at $10,750 per day through May/June 2010 M/V Free Envoy Handysize 1984 26,318 30 day time charter trip at $15,000 per day through June 2010 M/V Free Goddess Handysize 1995 22,051 15 day time charter trip at $14,000 per day through May 2010 M/V Free Hero Handysize 1995 24,318 40-45 day time charter at $18,000 per day through June 2010 M/V Free Impala Handysize 1997 24,111 30 day time charter trip at $20,000 per day through June 2010 M/V Free Jupiter Handymax 2002 47,777 Balance of time charter at $25,216 per day through February 2011 and any day in excess at $28,000 per day through May 2011 M/V Free Knight Handysize 1998 24,111 25-30 day time charter trip at $15,500 per day through June 2010 M/V Free Lady Handymax 2003 50,246 Balance of time charter at $51,150 per day through June 2010 M/V Free Maverick Handysize 1998 23,994 60-110 day time charter trip at $15,000 per day through May/July 2010 M/V Free Neptune Handysize 1996 30,838 60-100 day time charter trip at $25,000 per day through June/July 2010
*The average net charter rates per vessel realized by the Company will depend on actual repositioning time and bunkers consumed between successive chartering employments, as well as potential operational off-hires. The above table is provided for indicative purposes only, and should not to be deemed to reflect actual operating revenues received from employment of vessels.
About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. Currently, it has a fleet of eight Handysize vessels and two Handymax vessels. FreeSeas' common stock and warrants trade on the NASDAQ Global Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at http://www.sec.gov. For more information about FreeSeas Inc., please visit the corporate website, http://www.freeseas.gr.
FreeSeas Inc. press release