Pangaea Snares USD 135 Million COA

Newport-based dry bulk shipping and logistics provider Pangaea Logistics Solutions has entered into a three to five-year contract of affreightment (COA) with an unnamed steel producer, potentially bringing the company up to USD 135 million in revenue over five years.

The first shipment is scheduled to commence in the summer of 2015 and the contract provides for up to 30 shipments per year, each generating nearly USD 1 million in revenue, Pangaea says.

Accordingly, the COA is expected to produce approximately USD 80 million in revenue over the initial three year term.

The ice-class bulkers will be loading on the east coast of Canada and discharging in Europe and will be operated by Pangaea Logistics Solutions’ ice-class specialist subsidiary, Nordic Bulk Carriers, based in Copenhagen.

”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 Chief Executive Officer of Pangaea Logistics Solutions.