Sino-Global Signs Agreements to Charter Two Ships to Meet Export Product Demand to China from the U.S.

Rhea-AI Summary

Sino-Global Shipping America, Ltd. (NASDAQ: SINO) announced the signing of bareboat charter contracts for two Handysize vessels, enhancing their capabilities to transport dry-bulk products like fertilizer and sulfur between the U.S. and China. CEO Lei Cao highlighted a recent MOU with Yunnan Jingyifeng Supply Chain Management, aimed at meeting rising export demands. The vessels are expected to generate revenue of approximately $7,500 to $8,500 per day, leveraging current market conditions. This strategic move follows an increase in the Baltic-Dry Index and aims to capitalize on opportunities from recent trade agreements.

Positive

• Signed contracts for two Handysize vessels to enhance shipping capacity.
• Expected revenue generation of $7,500 to $8,500 per day from vessel operations.
• Recent MOU with Yunnan Jingyifeng Supply Chain Management to meet increased export demand.

Negative

• None.

ROSLYN, N.Y., June 29, 2020 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "we"), a non-asset based global shipping and freight logistic integrated solution provider, today announced that it has signed bareboat charter contracts with two "Handysize" vessels capable of carrying between 40,000 – 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.

Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "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. 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."

About Sino-Global Shipping America, Ltd.

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. The Company's current service offerings consist of shipping agency services, shipping and chartering services, inland transportation management services and ship management services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net. The Company routinely posts important information on its website.

Forward Looking Statements

No statement made in this press release should be interpreted as an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in Sino-Global's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as the date hereof. Sino-Global undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

The Equity Group Inc.
Adam Prior
Senior Vice-President
(212) 836-9606 / aprior@equityny.com

 

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SOURCE Sino-Global Shipping America, Ltd.