Himalaya switches newcastlemax brace to fixed deals
Himalaya Shipping Transitions to Fixed-Rate Charters
Himalaya Shipping is making significant strides in its earnings strategy by converting two more Newcastlemax vessels to fixed-rate charters. The Oslo-listed company, backed by Tor Olav Troim, announced that these dual-fuel ships will begin fixed hire on October 1 and continue through the end of the year. This move is expected to secure an average daily earning of $38,700, while still benefiting from scrubber premiums under their existing charter agreements.
Strategic Shift to Fixed Earnings
This latest transition follows Himalaya Shipping‘s earlier decision to shift from index-linked earnings, a strategy they began implementing in March. Initially, the company converted two of its 210,000 dwt LNG dual-fuel bulkers to fixed charters, followed by an additional four vessels in July. Currently, these six ships are contracted at an average rate of $34,000 per day, set to last until the end of September.
Once the new pair of vessels transitions to fixed-rate contracts, four out of the twelve ships in Himalaya’s fleet will be operating under fixed-rate agreements, averaging $35,200 per day. The remaining vessels will continue to engage in index-linked employment, which has been a traditional revenue model for many shipping companies.
Himalaya Shipping has reported earnings that significantly exceed market benchmarks. In the second quarter of 2025, the Baltic Capesize Index averaged $18,681 per day, while Himalaya’s fleet achieved an impressive average of $28,400 per day. For July, the company reported average Time Charter Equivalent (TCE) earnings of $32,700, showcasing the effectiveness of their strategic shift.
Future Outlook
The ongoing transition to fixed-rate charters reflects Himalaya Shipping’s commitment to enhancing revenue stability in a fluctuating market. By securing fixed earnings, the company aims to mitigate risks associated with market volatility and ensure consistent cash flow. As the shipping industry continues to navigate challenges, Himalaya’s proactive approach may position it favorably for future growth.
With this strategic pivot, Himalaya Shipping is not only adapting to current market conditions but also setting a precedent for other companies in the sector. The focus on fixed-rate charters could become a trend as firms seek to stabilize earnings in an unpredictable economic landscape.
