Friday, June 18, 2010

First Ship Lease Trust

First Ship Lease Trust said that it has the secured the release of its vessel, Verona I on 17 June 2010 after a security deposit of US$1.6m was posted with the Japanese Court. The trust will deploy the vessel in the spot market under the commercial management of United Product Tankers, since the vessel has been withdrawn from the lessee, Mesino Shipping Company and consequently will no longer be employed under the Contract of Affreightment between Mesino and OJSC Rosneft Oil Company.

As an estimation of expected spot market earnings, the current one-year time charter rate for product tankers of similar specification as ‘Verona I’ is about US$13,000 per day. FSLTM is of the view that given the market fundamentals, the product tanker market has more upside potential than downside risk.

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