CMA CGM, GSL Extend Two Charters at Lower Rates

CMA CGM French container shipping company CMA CGM has extended the charters of two 2,207-TEU vessels, the Marie Delmas and Kumasi, for a period of up to 3.25 years. The company agreed the extensions for the 2002-built vessels with the UK-based containership lessor Global Ship Lease at GSLs option. Under the agreement, a revised rate of USD 13,000 per day will apply from August 1, 2016 until the charters previous earliest expiry dates in September 2017. Both vessels were previously chartered at a rate of USD 18,465 per day until March 2018, according to data released by GSL. Global Ship Lease has three consecutive option periods, the first of 1.25 years and the second and third of one year each, through December 31, 2020 at a rate of USD 9,800 per day. Ian Webber, Chief Executive Officer of Global Ship Lease, said that the extended terms would increase the companys contracted revenue by USD 19 million at a time when much of the container shipping market continues to experience significant distress. Additionally, our successive charter options on these two vessels from late 2017 position us to benefit in a strengthening market, while ensuring a base charter rate that is in excess of the current prevailing spot market rates, Webber added.