Ivan Kolskov

Ivan Kolskov inquired about Himalaya Shipping's pricing power for upcoming time charter renewals, specifically for 2027, given the slight decrease in average premium from 42% to 41%. He also asked about the company's strategy regarding the Capesize benchmark index for future agreements.

Answer

CEO Lars-Christian Svensen explained that higher premiums are typically secured in softer markets, while renewals in stronger markets might see a slight premium discount. He noted the company aims for shorter durations in high markets to optimize future premiums. Svensen also confirmed that Himalaya Shipping currently adheres to the old Capesize index, aligning with FFA trading, but anticipates a mathematical adjustment for premiums if new indexes are adopted.

Ivan Kolskov inquired about Himalaya Shipping's commercial strategy for time charter agreements, specifically asking about the pricing power for upcoming renewals and the expected average premium for the entire fleet in 2027, noting a historical decrease in average premium. He also asked if the company would continue to use the old Capesize index or transition to the new benchmark.

Answer

CEO Lars-Christian Svensen explained that higher premiums are typically achieved when market rates are soft, as it's easier for charterers to navigate volatile FFA markets. He noted that in a strong market ($30,000-$40,000), charterers might not pay the exact same premium, leading to a small discount, but not dramatic reductions. The company aims to renew vessels in shorter durations during high markets to potentially secure better premiums later. Regarding the index, Svensen stated that Himalaya Shipping is currently sticking to the old Capesize index because FFAs are still traded on it and all current vessels are linked to it. He anticipates a dynamic change over time as new indexes become more common, assuring that premiums would be adjusted mathematically to maintain similar upside.