Castor Maritime Inc. Announces New Charter Agreements

Rhea-AI Summary

Castor Maritime Inc. (NASDAQ: CTRM) has announced significant time charter contracts for multiple vessels. The M/V Magic Nova and M/V Magic Pluto will receive charters at rates equal to 92% of the average Baltic Panamax Index, commencing on November 17 and December 7, 2021, respectively. The M/V Magic Orion is set for a charter starting around November 21, 2021, at 101% of the average Baltic Capesize Index. Additionally, M/V Magic Vela will start a 45-day charter at $19,000 per day plus a bonus. All contracts have minimum durations of eleven months.

Positive

• Secured time charter contracts for four vessels, providing stable revenue streams.
• Charter rates for M/V Magic Nova and M/V Magic Pluto are tied to the Baltic Panamax Index, potentially benefiting from market rates.
• The M/V Magic Orion charter rate exceeds the Baltic Capesize Index average, indicating strong demand.

Negative

• None.

LIMASSOL, Cyprus, Nov. 18, 2021 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM), (“Castor”, or the “Company”), a diversified global shipping company, announces that:

The M/V Magic Nova, a 2010 built Panamax dry bulk carrier, has been fixed on a time charter contract at a gross daily charter rate equal to 92% of the average of the Baltic Panamax Index 5TC routes¹. The charter commenced on November 17, 2021, and has a minimum duration of eleven months and a maximum duration of about fourteen months (+/- 15 days) at the charterer’s option.

The M/V Magic Orion, a 2006 built Capesize dry bulk carrier, has been fixed on a time charter contract at a gross daily charter rate equal to 101% of the average of the Baltic Capesize Index 5TC routes². The charter is expected to commence on or around November 21, 2021, and will have a minimum duration of eleven months and a maximum duration of fourteen months at the charterer’s option.

The M/V Magic Vela, a 2011 built Panamax dry bulk carrier, has been fixed on a time charter contract at a gross daily charter rate of $19,000 plus a one-time gross ballast bonus of $550,000. The charter is expected to commence on or around November 29, 2021, and will have a duration of about 45 days.

The M/V Magic Pluto, a 2013 built Panamax dry bulk carrier, has been fixed on a time charter contract at a gross daily charter rate equal to 91% of the average of the Baltic Panamax Index 5TC routes¹. The charter is expected to commence on December 7, 2021, and will have a minimum duration of eleven months and a maximum duration of about fourteen months (+/- 15 days) at the charterer’s option.

1. The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 5TC routes is a non-scrubber fitted 82,500mt dwt vessel (Kamsarmax) with specific age, speed - consumption, and design characteristics.
2. The benchmark vessel used in the calculation of the average of the Baltic Capesize Index 5TC routes is a non-scrubber fitted 180,000mt dwt vessel with specific age, speed - consumption, and design characteristics.

About Castor Maritime Inc.

Castor Maritime Inc. is an international provider of shipping transportation services through its ownership of oceangoing cargo vessels.

Castor owns a fleet of 27 vessels, with an aggregate capacity of 2.3 million dwt, consisting of 1 Capesize, 7 Kamsarmax and 11 Panamax dry bulk vessels, as well as 1 Aframax, 5 Aframax/LR2 and 2 Handysize tankers.

For more information please visit the Company’s website at www.castormaritime.com 
Information on our website does not constitute a part of this press release.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. We desire to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are including this cautionary statement in connection with this safe harbor legislation. The words “believe”, “anticipate”, “intend”, “estimate”, “forecast”, “project”, “plan”, “potential”, “will”, “may”, “should”, “expect”, “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include general dry bulk and tanker shipping market conditions, including fluctuations in charter hire rates and vessel values, the strength of world economies the stability of Europe and the Euro, fluctuations in interest rates and foreign exchange rates, changes in demand in the dry bulk and tanker shipping industry, including the market for our vessels, changes in our operating expenses, including bunker prices, dry docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, the length and severity of the COVID-19 outbreak, the impact of public health threats and outbreaks of other highly communicable diseases, the impact of the expected discontinuance of LIBOR after 2021 on interest rates of our debt that reference LIBOR, the availability of financing and refinancing and grow our business, vessel breakdowns and instances of off-hire, potential exposure or loss from investment in derivative instruments, potential conflicts of interest involving our Chief Executive Officer, his family and other members of our senior management, and our ability to complete acquisition transactions as planned. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

CONTACT DETAILS

For further information please contact:

Petros Panagiotidis
Castor Maritime Inc.
Email: ir@castormaritime.com 

Media Contact:
Kevin Karlis
Capital Link
Email: castormaritime@capitallink.com 

FAQ

What is the significance of the recent charters for Castor Maritime (CTRM)?

The recent charters provide Castor Maritime with stable revenue streams over a minimum duration of eleven months, enhancing financial stability.

When do the new charters for Castor Maritime vessels commence?

The M/V Magic Nova charter commenced on November 17, 2021, while the M/V Magic Orion is expected to start around November 21, 2021. The M/V Magic Vela's charter is set to begin on November 29, 2021, and the M/V Magic Pluto on December 7, 2021.

What are the charter rates for the vessels leased by Castor Maritime (CTRM)?

The M/V Magic Nova and M/V Magic Pluto are chartered at rates equal to 92% of the Baltic Panamax Index, M/V Magic Orion at 101% of the Baltic Capesize Index, and M/V Magic Vela at $19,000 per day plus a $550,000 bonus.