Norden Pays for Charter Rate Cuts

first_imgzoom Danish shipping company Dampskibsselskabet Norden A/S has entered into agreement on reduction of future time charter payments with unnamed Japanese shipowners, relating to nine vessels on long-term charter.The company did not disclose any details regarding the type of vessels in question.As part of the agreement, Norden has made a one-off payment of USD 51.5 million in return for a reduction of future time charter payments of USD 62 million in the coming 4 years corresponding to a total reduction in hire of USD 10.5 million.After the one-off payment of USD 51.5 million, Norden’s cash and securities amount to USD 220 million while undrawn credit facilities amount to USD 419 million, the company said.Norden added that the change in the time charter agreements would not affect operations in the period from 2015-2018.According to Norden, the move will pave way for significant savings.last_img

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