Pangaea Logistics Solutions has received extensions for two contracts of affreightment (COA) for dry bulk materials, which it says will generate up to $22m in revenue over the next three years.
The extended contracts will also optimally position Pangaea vessels for backhaul routes, the NASDAQ-listed company said.
Specifically, a major international aluminum company has agreed to a two year COA extension that will cover 2017 and 2018 and utilize Supramax vessels on a route from Brazil to the east coast of Canada. This extension provides for the shipment of 400,000-500,000 metric tons of cargo per year.
Separately, the company announced a one year extension of a COA for the shipment of approximately 850,000 metric tons of pig iron from Brazil to the United States.
“These COA extensions not only reflect our ability to continually expand our mutually beneficial relationships with our partners, but also showcase the effectiveness of our backhaul strategy,” said Ed Coll, Chairman and Chief Executive Officer of Pangaea Logistics Solutions.
“These routes are some of the busiest in the world and strategically position us for additional for voyage days. We continue to execute on our disciplined growth strategy, with a focus on stable, long-term COAs and specialized backhaul and ice-class trades,” he added.