PIRAEUS, Greece, Feb. 23, 2009 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) ("FreeSeas" or the "Company"), a provider of seaborne transportation for drybulk cargoes, announced today that it has successfully rechartered four of its vessels.
The Free Destiny, a 1982-built, 25,240 dwt Handysize vessel, has been delivered to its new charterers on a period charter of a minimum of two months and maximum four months at a charter rate of $4,000 per day.
The Free Hero, a 1995-built, 24,318 dwt Handysize vessel, has been delivered to her new charterers for a spot time charter trip of approximately 60 days at a charter rate of $4,500 per day.
The Free Impala, a 1997-built, 24,111 dwt Handysize vessel, was delivered for a new spot time charter trip of approximately 45 days at a charter rate of $6,500 per day after it was redelivered to the Company. The prior charterer redelivered the vessel approximately one month earlier than the contractual termination date of the charter, but has agreed to pay as compensation to the Company the difference between the prior remaining contracted rate and the spot charter rate.
The Free Knight, a 1998-built, 24,111 dwt Handysize vessel, has been fixed for a spot time charter trip of approximately 40 days at a charter rate of $7,000 per day which shall commence after completion of its present period charter.
"We are pleased to have secured employment for our four vessels at gradually improving charter rates, which cover the vessels' operating costs. We are particularly pleased to have been able to secure employment for the oldest vessel of our fleet, the Free Destiny, a development that reflects the improving sentiment and rates in the dry bulk sector. These fixings bring our charter coverage for 2009 to 48% of our available days," said Mr. Ion Varouxakis, President and CEO of FreeSeas. "If the charter rates continue to improve as they have over the last few weeks, we expect to be able to secure significantly higher income for our vessels working in the spot market."
Vessel Name Dwt Vessel Type Built Employment
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Free Destiny 25,240 Handysize 1982 Spot time charter trip of
2-4 months at $4,000 per
day through April/June 2009
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Free Envoy 26,318 Handysize 1984 Balance of time charter at
$32,000 per day through May
2009
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Free Goddess 22,051 Handysize 1995 Balance of time charter
through September 2009 at
$19,250 per day
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Free Hero 24,318 Handysize 1995 60 day spot time charter
trip through beginning
April 2009 at $4,500 per day
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Free Impala 24,111 Handysize 1997 45 day spot time charter
trip through end March 2009
at $6,500 per day
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Free Jupiter 47,777 Handymax 2002 Balance of three year time
charter through February
2011 at $32,000 per day for
first year, $28,000 per day
for second year and $24,000
per day for third year
----------------------------------------------------------------------
Free Knight 24,111 Handysize 1998 40 day spot time charter
trip through April 2009 at
$7,000 per day
----------------------------------------------------------------------
Free Lady 50,246 Handymax 2003 Balance of time charter at
$51,150 per day through
May 2010
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Free Maverick 23,994 Handysize 1998 Balance of time charter
through April 2009 at
$32,000 per day
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About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. Currently, it has a fleet of seven Handysize vessels and two Handymax vessels. FreeSeas' common stock and warrants trade on the NASDAQ Global Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at http://www.sec.gov. For more information about FreeSeas Inc., please visit the corporate website, http://www.freeseas.gr.
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for dry bulk vessels; competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.