South Korean shipping company Korea Line Corporation (KLC) said on 14 October that it had signed a long-term timecharter (TC) contract with compatriot logistics firm Hyundai Glovis, part of Hyundai Motor Group.
Effective immediately, the KRW31.246 billion (USD27.25 million) contract will last until 18 February 2021 KLC said in a Korea Exchange filing. The company told IHS Maritime that a Capesize bulker – one of 16 in KLC’s active fleet – would be chartered to Hyundai Glovis for the duration, as required by the contract.
The daily hire works out to about USD14,000, which is higher than current TC rates of about USD10,529.
A Korean broker told IHS Maritime, “Many shipowners are losing money from their owned vessels as spot rates are insufficient to cover financing costs. So they are satisfied if they can secure cargo or long-term contracts at decent rates.”
KLC, which went into receivership in 2011 when dry bulk freight rates weakened, has emerged from rehabilitation after being acquired by a consortium led by SM Group affiliate TK Chemical in 2013.