Tallink Grupp signs long-term charter agreement for CruiseFerry Isabelle with purchase option
c: Tallink Grupp
Late last week, Tallink Grupp signed a deal with Canadian company Bridgemans Floatel LP/Bridgemans Services Group LP for a multi-year charter of the company's vessel, Isabelle, with an option to purchase. The agreement provides for a bareboat charter, ie the ship is chartered out without the crew of Tallink Grupp.
The Latvian-flagged Isabelle, which used to operate the Riga-Stockholm route before the Covid pandemic and is currently hosting Ukrainian refugees in Tallinn since April 2022 under a charter agreement with the Estonian government, will be handed over to Bridgemans from 1 July 2023 chartered.
Tallink Grupp CEO Paavo Nõgene commented on the new charter agreement as follows:
“We are delighted to have reached this new agreement for our ship Isabelle - an agreement that will no doubt have a positive impact on our bottom line. Tallink has had a number of successful charter projects in the past with the company's vessels used for temporary accommodation or for transport purposes in countries such as Australia, Canada and Morocco. In recent years, chartering our ships has provided us with a good alternative source of income and an important buffer during difficult times of travel restrictions. Our ships and crew have proven to be invaluable partners in global summit meetings as well as in the Ukraine war relief effort.”
“Recent years have shown that the chartering of our ships has been and will continue to be an important part of our business model. And there are many reasons why chartering ships on long-term contracts makes good business sense for us, and mostly it's a combination of the ongoing economic uncertainties, low demand and consumer confidence, the slower-than-expected recovery in passenger numbers, the significant pressures from rising Costs and the resulting wage increases from the recently signed new collective agreement.”
Isabelle is expected to stay in Tallinn for renovations before heading to Canada later this year.
Tallink Grupp's current agreement with the Estonian Social Insurance Agency ends in June 2023. Around 900 Ukrainian refugees are currently still living on board the ship. The Estonian authorities have drawn up alternative accommodation plans for the refugees after the termination of the contract with Tallink Grupp.
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