Tanker owners are locking in higher long-term rates as Nasdaq-listed Performance Shipping secures a two-year extension for its aframax Blue Moon with AET, the tanker arm of MISC Group, at significantly improved earnings, according to Splash247.
The 2011-built, 104,623 dwt vessel will earn $43,000 per day during the first year and $38,000 per day in the second, giving an average rate of $40,500 per day. The deal includes an option for AET to shorten or extend the charter by 15 days. This new rate marks a significant increase over the $28,000 per day the vessel is earning under its existing employment with AET.
Charter Details and Timeline
The original 21-month charter was agreed in December 2024 and started the following month. The Blue Moon will undergo a scheduled drydock once the current charter expires, with the extended employment expected to start directly afterwards by the end of 2026.
Financial Impact
Performance Shipping stated that the contract should generate about $29m in gross revenue over its minimum duration. The latest fixture lifts the Athens-based owner's contracted revenue backlog to more than $530m, with charter coverage approaching 90% through the end of 2028 and standing at around 60% for 2029. The company has been actively locking in long-term cover across its tanker fleet.
| Vessel | Charterer | Previous Rate ($/day) | New Rate ($/day) | Duration | Gross Revenue Added |
|---|---|---|---|---|---|
| Blue Moon (aframax) | AET | $28,000 | $40,500 avg | 2 years | ~$29m |
| Briolette (aframax) | Aramco Trading | N/A | $37,700 | ~3 years | ~$39m |
Earlier Extension with Aramco Trading
Earlier this month, Performance Shipping extended the charter of the 2011-built aframax Briolette with Aramco Trading for nearly three years at $37,700 per day, adding about $39m to its backlog, according to Splash247.
Implications for Shippers and Operators
The rising term charter rates for aframax tankers signal tightening supply in the crude tanker segment. Shippers relying on aframax tonnage for medium-haul crude movements may face higher freight costs as owners lock in favourable long-term employment. The extended coverage also reduces spot availability, potentially pushing up short-term rates for remaining open vessels. Logistics managers should monitor tanker market developments closely, especially on key routes such as the Atlantic Basin and Mediterranean.
Watch List
- The Blue Moon's drydock window and the exact start of the new charter by end of 2026.
- Any further charter extensions or new fixtures by Performance Shipping or other Greek tanker owners.
- Potential rate movements in the aframax segment as vessel employment coverage tightens.
- The impact of MISC Group's fleet strategy and AET's chartering decisions on spot rates.
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