Performance Shipping Secures Two-Year Charter Extension for Aframax Tanker at $40.5K/Day
Event summary
- Performance Shipping extended the charter for its Aframax tanker M/T Blue Moon with AET for two years, averaging $40,500/day.
- The deal includes rates of $43,000/day in Year 1 and $38,000/day in Year 2, up from the prior rate of $28,000/day.
- The extension is expected to generate ~$29M in gross revenue over the two-year period.
- Charter coverage now approaches 90% through late 2028 and remains ~60% for 2029.
The big picture
This extension underscores Performance Shipping’s ability to secure long-term charters in a volatile tanker market, enhancing cash flow predictability. The deal reflects strong charterer demand and positions the company favorably amid fluctuating global oil dynamics. With over $530M in contracted revenue backlog as of mid-2026, the move reinforces its strategy of maximizing fleet utilization.
What we're watching
- Market Conditions
- How sustained demand for Aframax tankers will affect future charter rates.
- Cash Flow Stability
- Whether Performance Shipping can maintain high charter coverage beyond 2029.
- Operational Efficiency
- The pace at which the company can capitalize on favorable market conditions for additional extensions.