FSL Trust Management Pte. Ltd., as trustee-manager of First Ship Lease Trust announced new time charter agreements for FSL Shanghai, FSL Hamburg and FSL Singapore.
The Trust has reached an agreement with a leading global commodities trader to charter the three vessels for a fixed period of two years with options to extend the agreements at a higher rate for FSL Hamburg and FSL Singapore for a further six months and FSL Shanghai for a further 12 months. FSL Hamburg and FSL Singapore are MR product tankers built in 2005 and 2006 respectively whilst FSL Shanghai is an Aframax crude oil tanker that was built in 2007.
The time charter agreements are expected to commence during the second half of this year and are anticipated to generate up to $61 million in revenue for the Trust over the next three years.
During the two year base period under the new employment, FSL Shanghai’s net daily rate represents a 54% increase while FSL Hamburg and FSL Singapore’s net daily rate represents a 31% increase for each vessel as compared to the previous time charter agreements. The increased rates reflect the continued tanker market improvement and demonstrate FSL Trust Management’s ability to achieve strong charter rates with good counterparties ensuring stable cash flows for the Trust.