FreeSeas Inc (NASDAQ:FREE)’S Vessel Gets Voyage Charter For 35 Days

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FreeSeas Inc (NASDAQ:FREE) was a massive decliner during Monday’s trading session. The stock collapsed by close to 19% on high volumes, which were 9 times the daily average. The stock has formed a bearish engulfing pattern on the daily charts indicative of the strong sell-side momentum at the current moment. The stock currently trades below all daily moving averages. The indicator for relative strength has given a fresh sell signal indicative of lack of strength. The MACD oscillator has given a sell signal, which is considered to be bearish. Investors believe the stock could head to levels of $0.02 in the near term.

FREE

FreeSeas Inc (NASDAQ:FREE) recently announced that its vessel received a contract of voyage charter for a duration of approximately 35 days. The company shall receive a gross rate of around $9,500 per day for its owned vessel, M/V Free Neptune.

This is the company-owned vessel that was built in 1996. It is a 30,838 dwt Handysize vessel. The vessel also completed its 37-days charter trip five days ago. The gross rate for a day for this trip was $8,900.

Benefits of New Charter for M/V Free Neptune to FreeSeas Inc

The interesting aspect is that the running cost of M/V Free Neptune is more than what it is charging at present. According to the CEO, Mr. Ion G. Varouxakis, M/V Free Neptune has so far, been able to get comfortable employment. Neptune is being used at the gross rates that are more than its operating cost.

Indicating the overall growth of this industry, Varouxakis explained that the present rates and the current scenario is a reflection of an improvement in the picture of time charter rates. At the dawn of the present fiscal year, the rates were not as pleasing as present.

FreeSeas is positive that the present scenario of the rates of the new charter for vessels shall remain so by the dusk of this financial year as well. He is positive that the company shall see optimistic results for its other vessels in the fleet as well. However, he did not sideline the dependency of rates on the positional situations. The cargo companies remain dependent upon a lot of uncertainties and risks, most of which are connected to the Governments’ internal policies and the EXIM policies as well.

The present fleet of FreeSeas primarily engages in drybulk cargoes transportation. At present, there are just the Handysize vessels in the fleet of FreeSeas Inc.

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