FSL Trust Management Pte. Ltd. , as trustee - manager of First Ship Lease Trust has entered into a time charter agreement with Tesoro Far East Maritime Company , a wholly - owned subsidiary of Tesoro Corporation for the FSL Shanghai, a 115,000 dwt crude oil tanker built in 2007, the company said in its press release.
The new employmen t is anticipated to generate approximately U S$5.7 million of headline revenues over the next 12 months. This represents an increase of US$ 1.6 million over the previous time charter contract , representing a 40% increase in net revenue year - on - year . The increased rate reflects an improvement in the Af ramax charter market but more importantly , an improvement in the operation of the vessel, its vetting status and FSL Trust Management eliminating transaction costs through using its network to take a more direct approach in securing contracts.
Tim Reid , Chairman of the Board of FSL Trust Management commented: "We are pleased to announce that we have secured employment for FSL Shanghai with Tesoro. This is a significant contract for the Trust with the vessel employment improv ing cash flows over the next 12 months. Securing this contract illustrates the value the new senior management team adds to the commercial operations of the Trust. ”