Sino-Global Shipping America charters bulker duo to meet export product demand to China
Shipping and logistics company Sino-Global Shipping America has signed bareboat charter contracts for two Handysize vessels capable of carrying between 40,000 and 50,000 deadweight tons of dry-bulk.
Both vessels were built in the 1990s and will serve the purpose of carrying dry bulk products, such as fertilizer raw materials and sulfur, to and from ports in the United States and China, the company said.
The new charter-in agreement comes days after Sino-Global signed a non-binding memorandum of understanding (MOU) with Yunnan Jingyifeng Supply Chain Management Co Ltd (JYF) to jointly develop the business of exporting products to China.
The products include sulphur, vegetable oil, soybean, barley, wheat, and dried grains with solubles, which are used for fuel production, feeding, and other agriculture needs.
“In recent weeks, we have signed an important MOU with Yunnan Jingyifeng Supply Chain Management (JYF) to meet the increase in export demand. While we are ramping up exports under that agreement, we felt it was prudent to secure vessels that would help to meet that demand and also provide Sino-Global versatility to sub-charter these vessels for immediate revenue as necessary. We expect we can deploy both vessels on the spot market at approximately $7,500 – $8,500 per day based on given rates, which given the recent increase in the Baltic-Dry Index made prudent financial sense,” Lei Cao, Chief Executive Officer of Sino-Global, commented.
“In addition, this provides the company with the option to operate these vessels directly as we accelerate shipments under the MOU in the second half of calendar 2020. We will continue to position the company to take advantage of a relatively unique situation following the trade agreement earlier this year.”
Founded in the United States in 2001, Sino-Global Shipping America Ltd. is a company engaged in shipping, chartering, logistics and related services. Headquartered in New York, Sino-Global has offices in Los Angeles, Mainland China, Australia, Canada and Hong Kong.