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Damned Angelicki !

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Jowaniter's Blog
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Summary

  • She did it again.
  • Higher opex rates for the members of the Navios group.

She did it (again).

The inkt on the NSAC contract was not yet dry and there she is.

The opex rates for $NMCI (the container arm in the group) are up starting 2020/01/01.

Schedule B, paragraph 1, is hereby amended and substituted in its entirety: In consideration for the provision of the Services listed in Schedule “A” by NSM to NMCI, NMCI shall, during the term of this Agreement, pay NSM:1. Until December 31, 2019, a fixed daily fee of US$6,100 per day for container vessels up to 5,500 TEU, US$6,700 per day for container vessels above 5,500 TEU and up to 8,000 TEU, and US$7,400 per day for container vessels above 8,000 TEU and up to 10,000 TEU, payable on the last day of each month.2. Commencing January 1, 2020, a fixed daily fee of US$6,265 per day for container vessels up to 5,500 TEU, US$7,830 per day for container vessels above 5,500 TEU and up to 8,000 TEU and US$8,320 per day for container vessels above 8,000 TEU and up to 10,000 TEU, payable on the last day of each month for two years (months one to twenty-four), (the “Fixed Daily Fee”); unless the parties agree otherwise, for each 12 month period after such two years, a 3% increase of the Fixed Daily Fee per Owned Vessel. In addition, NMCI shall pay to NSM dry-docking expenses at cost for each Vessel (together with the Fixed Daily Fees described in the preceding sentence and any applicable value added, sales or services taxes, the “Fees”).

For $NMCI this means that starting 2020 more or less $ 2,000,000 is sucked away per quarter.

This is the scenario I was afraid of.

These opex rates are in line with what e.g. Global Ship Lease is paying, but higher than the rates Costamare is paying.

I expect similar rates will be charged to $NMM and also the other rates (Supramax, Panamax & Capesizes) will go higher.

Damned Angelicki ! You gave all the bashers another stick to hit you !

Analyst's Disclosure: I am/we are long NMCI, NMM, NM, NNA.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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