Himalaya Shipping has secured a fresh time charter for its 2024-built LNG dual-fuel newcastlemax Mount Aconcagua at a significant premium to the benchmark capesize index, reinforcing the owner's strategy of index-linked chartering in a strengthening dry bulk market.
The Oslo- and New York-listed owner, backed by Tor Olav Trøim and led by CEO Lars-Christian Svensen, announced the 16- to 18-month charter starting in the second half of July after redelivery from its current contract. The 210,000 dwt vessel, built at China's New Times Shipyard, will earn an index-linked rate with a premium over the Baltic 5TC index. The deal also includes conversion rights, allowing the company to switch to a fixed rate based on the prevailing forward freight agreement (FFA) curve. No charterer was disclosed, according to a company statement reported by Splash247.
Vessel and Fleet Background
The Mount Aconcagua is one of Himalaya's 12 LNG dual-fuel newcastlemaxes delivered from New Times Shipyard between 2023 and 2024. The vessel had previously been trading on an index-linked contract with a premium and scrubber benefit, with an expiry listed for May 2026 plus option. The latest fixture keeps Himalaya's premium index-linked model in place at a time when capesize earnings have strengthened.
Earnings and Market Context
Himalaya reported average gross TCE (time charter equivalent) earnings of about $52,900 per day in June, including average daily scrubber benefits of about $1,300. The carrier's fleet performance broke down as follows:
| Charter Type | Number of Vessels | Average Daily TCE (June) |
|---|---|---|
| Index-linked (with premium) | 7 | ~$52,500 |
| Fixed-rate | 5 | ~$53,400 |
| Fleet-wide average | 12 | ~$52,900 |
By comparison, the Baltic 5TC 180 Capesize Index averaged $35,414 during June, highlighting the premium Himalaya commands for its modern, fuel-efficient fleet.
Implications for Shippers and Operators
For charterers and logistics managers, this fixture underscores the growing cost premium for securing high-spec, eco-friendly bulk carriers. Himalaya's index-linked deals, which include a margin above the Baltic benchmark and optionality to convert to fixed rates, provide flexibility in a volatile market. Operators should anticipate that LNG dual-fuel capability and scrubber fitment will continue to command a premium over standard capesize tonnage as environmental regulations tighten and fuel costs fluctuate. The conversion rights allow Himalaya to lock in favourable fixed rates if the forward curve permits, reducing exposure to spot market swings.
Watch List
Key factors that could influence the situation:
- Redelivery of existing index-linked charters, including the Mount Aconcagua's previous contract expiring May 2026 (plus option).
- Further newcastlemax deliveries from New Times Shipyard; Himalaya's full fleet of 12 vessels is already delivered.
- Capesize earnings trajectory, driven by iron ore demand from Australia and Brazil to Asia, and the broader dry bulk supply-demand balance.
- Developments in the LNG bunkering infrastructure and fuel price spreads affecting the economics of dual-fuel vessels.
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