Becoming more common: Index-based floating charters

Charter contracts with an index-based floating rate are becoming more commonplace and are an interesting alternative to pool employment. The owner earns a full market rate without the administrational hassle of pool accounts, pool meetings and risk profiles.

Floating charters offer continuous employment at index and hire is payable every day even if the vessel is waiting or ballasting. It lets the owner benefit from a market upturn instantly. A growing share of our operated fleet of around 400 bulk carriers is run on floating charter.

In the last 10 years, we concluded floating time-charter and bareboat-charter contracts for a total of 54 ships from Handysize up to Capesize vessels. Currently, we operate resp. will take delivery of 41 bulkers under index-based charters:

10 x 205-207,000 tdw Newcastlemax bulkcarriers

9 x 175-182,000 tdw Capesize bulkcarriers

1 x 169-174,000 tdw Capesize bulkcarriers

2 x 93,000 tdw Post Panamax bulkcarrier

5 x 80-82,000 tdw Kamsarmax bulkcarriers

5 x 75-77,000 tdw Panamax bulkcarrier

1 x 52-58,000 tdw Supramax bulkcarrier

8 x 26-33,000 tdw Handysize bulkcarriers

We usually pay semi-monthly hire based on the average TC routes of the relevant BALTIC index, possibly with an adjustment for size or special features. Periodically, this is being adjusted based on the actual indices.

We are also operating ships on floating Bareboat Charter, where an agreed fixed operating cost component is being deducted from the average of the TC routes. By guaranteeing fixed opex, we are effectively shielding the owner from any cost increases. If you are interested in a quote, please approach Jens Jacobsen or Marco Hammer.

Jens Jacobsen
Office: +65 6499 5547
Mobile: +65 8181 6155
Email : jens.jacobsen@oldendorff.com

Marco Hammer
Office: +65 6499 1903
Mobile: +65 9648 6307
Email : marco.hammer@oldendorff.com