Vessel Name |
Type |
Built |
Dwt |
Employment |
| M/V Free Destiny |
Handysize |
1982 |
25,240 |
40-45 day time charter trip at $14,000 per day through January 2010 |
| M/V Free Envoy |
Handysize |
1984 |
26,318 |
55-60 day time charter trip at $7,200 per day through January 2010 |
| M/V Free Goddess |
Handysize |
1995 |
22,051 |
Balance of time charter at $10,500 per day through January/February 2010 (plus 50% profit sharing above $12,500 per day) |
| M/V Free Hero |
Handysize |
1995 |
24,318 |
3-5 month trip time charter at $11,500 per day through February/April 2010 |
| M/V Free Impala |
Handysize |
1997 |
24,111 |
30-40 day time charter trip at $13,500 per day through January 2010 |
| M/V Free Jupiter |
Handymax |
2002 |
47,777 |
Balance of time charter at $25,216 per day through February 2011 and any day in excess at $28,000 per day through May 2011 |
| M/V Free Knight |
Handysize |
1998 |
24,111 |
60 day time charter trip at $15,000 per day through January 2010 |
| M/V Free Lady |
Handymax |
2003 |
50,246 |
Balance of time charter at $51,150 per day through May 2010 |
| M/V Free Maverick |
Handysize |
1998 |
23,994 |
30 day time charter trip at $14,000 per day through January 2010 |
| M/V Free Neptune |
Handysize |
1996 |
30,838 |
45-75 day time charter period at $16,000 per day through January/February 2010 |
| * The average net charter rates per vessel realized by the Company will depend on actual repositioning time and bunkers consumed between successive chartering employments, as well as potential operational off-hires. The above table is provided for indicative purposes only, and should not to be deemed to reflect actual operating revenues received from employment of the vessels. |
Vessel Employment
FreeSeas employs its vessels in a combination of spot charter market, period time charters and in drybulk carrier pools.
A spot charter and a period time charter are contracts to charter a vessel for an agreed period of time at a set daily rate. Under a spot charter, this daily rate can either be a contract to carry a specific cargo for a per day rate or a per ton carry amount, depending on the agreement with the charterer.
Under spot charters, FreeSeas pays voyage expenses such as port, canal and fuel costs. Under period time charters, the charterer pays these voyage expenses.
Under both spot charters and period time charters, FreeSeas is responsible for vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs. FreeSeas is also responsible for each vessel's intermediate drydocking and special survey costs.
The exception to this practice is known as a "bareboat contract", whereby the charterer is responsible for the vessel's maintenance and operations, as well as all voyage expenses as explained above.
Vessels operating on period time charter provide more predictable cash flows, but can yield lower profit margins than vessels operating in the spot market during periods characterized by favorable market conditions. Vessels operating in the spot market generate revenues which are less predictable but may enable FreeSeas to increase profit margins during periods of increasing drybulk charter rates.
However, FreeSeas would then be exposed to the risk of declining drybulk charter rates, which may be higher or lower than the rates at which FreeSeas chartered its vessels. FreeSeas is constantly evaluating opportunities for period time charters, but only expects to enter into additional period time charters if FreeSeas can obtain contract terms that satisfy its criteria.
Finally, FreeSeas may from time to time employ its vessels in carrier pools. These pools, operated by third parties, bring together vessels from one or multiple owners to service the needs of charterers. In this arrangement, voyage and operating expenses are paid by the pool manager, and FreeSeas would be paid its "share" of the voyage revenues on a predetermined schedule.
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