Mercator Lines (Singapore), the dry bulk shipper focused on markets such as India and China, says it has chartered out vessels on long-term contracts to leading dry bulk commodity players.

In the first deal, the company fixed its gearless Kamsarmax Prem Veena with an existing major steel customer. The charter rate shall be at a minimum time charter equivalent (TCE) rate of US$20,000 ($27,448) per day.

Mercator says the deal is structured in such a manner that the earnings would be linked to the four TC average of Baltic Panamax Index and all earnings between US$20,000 per day and US$25,000 per day would go towards by Mercator while any earnings above US$25,000 per day, would be shared equally between Mercator and the charterer. The two year charter started in April.

For the second contract, Mercator has deployed its geared Panamax vessel, Kalpana Prem at a TCE rate of of US$24,000 per day for a period of two years starting April 2010. The contract again is with an existing customer.