Pangaea Logistics Solutions Announces Long-Term Contract of Affreightment Utilizing Ice-Class Vessels
May 20 2015 - 08:53AM
Business Wire
Pangaea Logistics Solutions, Ltd. (“Pangaea” or the “Company”)
(NASDAQ: PANL) announced today that it has entered into a three to
five-year Contract of Affreightment (“COA”) with a major
international steel producer that will utilize its ice-class
tonnage and has the potential to produce up to $135 million in
revenue over five years.
The first shipment is scheduled to commence in the summer of
2015 and the contract provides for up to 30 shipments per year,
each generating nearly $1 million in revenue. Accordingly, the COA
is expected to produce approximately $80 million in revenue over
the initial three year term, and has the capacity to contribute up
to $135 million in revenue over its maximum term. The performing
vessels will be loading on the east coast of Canada and discharging
in Europe and will be operated by Pangaea Logistics Solutions’
ice-class specialist subsidiary, Nordic Bulk Carriers, which is
based in Copenhagen.
“Today’s announcement showcases how our unique expertise in the
ice-class trades allows us to secure high-value COAs that are
mutually beneficial to us and our partners, despite the ongoing
turbulence in the dry bulk markets” said Ed Coll, Chairman and
Chief Executive Officer of Pangaea Logistics Solutions. “We are
very pleased by today’s announcement and look forward to continuing
to grow our business with a focus on accretive and stable COAs
related to specialized trades where our differentiated capabilities
allow us to add meaningful value.”
About Pangaea Logistics Solutions, Ltd.
Pangaea Logistics Solutions Ltd. provides logistics services to
a broad base of industrial customers who require the transportation
of a wide variety of dry bulk cargoes, including grains, pig iron,
hot briquetted iron, bauxite, alumina, cement clinker, dolomite,
and limestone. The Company addresses the transportation needs of
its customers with a comprehensive set of services and activities,
including cargo loading, cargo discharge, vessel chartering, and
voyage planning. Learn more at www.pangaeals.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150520005284/en/
Prosek PartnersThomas Rozycki, 212-279-3115 x208Managing
Directortrozycki@prosek.com
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