Mercator Lines in charter deal with PRC Shipping

MUMBAI: Mercator Lines has entered into a firm negotiation with Refined Success, a subsidiary of PRC Shipping Conglomerate COSCO Shipping Co, for the time charter-out of Geastiniono TBN, a gearless post panamax vessel of 92,500 DWT.

This is a one-time charter for a period of 35-37 months. The charter-out rate will be $39,500 per day and the commencement date is anytime between May 1, 2009 and Sept 30, 2009.

The vessel is taken by the company on time charter-in basis at $25,300 per day for a period of 5 years and is expected to be delivered in June 2009.

The charter is not expected to have any material impact on the net tangible assets per share, earnings per share and operating results of the company for the current financial year.

On Tuesday, Mercator Lines shares closed up 20 per cent at Rs 71.40 on BSE.