The Company’s shipping revenues are principally generated from time charters and voyage charters. In a time charter contract, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. The charterer has the full discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer, subject always to compliance with applicable sanction laws, and carry only lawful or non-hazardous cargo. In a time charter-out contract, the Company is responsible for costs incurred for running the vessel (e.g., crew costs, vessel insurance, repairs and maintenance and lubes) and the charterer is responsible for voyage-related costs (e.g., bunker costs, port charges and canal tolls) during the hire period. Lease terms for time charter-out contracts generally range from 30 days to 2 years, however, typically include options to extend the lease

term. Time charter-out contracts are accounted for as operating leases. The Company records revenue generated from time charter-out contracts on a straight-line basis over the term of the respective time charter agreements as Revenues, net in the Consolidated Statements of Operations. See Note 12, Revenue for additional details.

A summary of lease payments expected to be received on fixed time charter-out contracts, net of commission, assuming no off-hire days, other than those related to scheduled interim or special surveys of the related vessel and excluding any voyage expenses associated with such contracts, as of December 31, 2022 is as follows:

The Company charters in vessels to supplement our own fleet and employs them on both time charters and voyage charters. Lease terms for time charter-in contracts generally range from 30 days to 2 years, however, typically include options to extend the lease term. Lease terms typically commence upon delivery of the vessel to the lessee. Time charter-in contracts are accounted for as operating leases. The Company records operating lease cost for time charter-in contracts as Charter hire expenses in the Consolidated Statements of Operations on a straight-line basis over the lease term. Due to the volatility of freight rates, the Company generally concludes that it is not reasonably certain to exercise any options to extend the lease term at lease commencement.

Generally, the implicit borrowing rate within time charter-in contracts cannot be readily determined; therefore, the Company uses its incremental borrowing rate in initially measuring operating lease liabilities and related right-of-use assets. The Company utilizes its implied credit rating and related yield curve data to determine its incremental borrowing rate at lease commencement based on the related lease term.

(i)The Company entered into an agreement effective April 28, 2017, to charter-in a 61,400 dwt, 2013-built Ultramax vessel for 1600 days with options to extend for two additional years. The hire rate for the first charter period is $12,800 per day and the hire rates for the first and second optional year are $13,800 per day and $14,300 per day, respectively. The Company took delivery of the vessel in May 2017. In July 2021, the Company exercised its option for the first additional year and in June 2022, the Company exercised its option for the second additional year. The lease is expected to terminate in September 2023.

(ii)On May 4, 2018, the Company entered into an agreement to charter-in a 61,425 dwt, 2013-built Ultramax vessel for three years with an option to extend for two additional years. The hire rate for the first three years is $12,700 per day and the hire rates for the first and second optional year is $13,750 per day and $14,750 per day, respectively. The Company took delivery of the vessel in September 2018. In June 2021, the Company exercised its option for the first additional year and in September 2022, the Company exercised its option for the second additional year. The lease is expected to terminate in October 2023.

second year was $15,250. The Company took delivery of the vessel in December 2018. In December 2019, the Company entered into a lease addendum which replaced the original lease’s second year’s hire rate with a new hire rate of $11,600 per day from March 1, 2020 through July 31, 2021 and added an option to extend the lease term for an additional year at a hire rate of $12,600 per day from August 1, 2021 through July 31, 2022. In May 2021, the Company exercised its option for the additional year. In March 2022, the Company entered into a lease addendum that extended the lease term at a hire rate of $23,888 per day from August 1, 2022 through June 1, 2023 and added an option to extend the lease term at a hire rate of $25,888 per day from June 2, 2023 through July 1, 2024. The lease is expected to terminate in June 2023.

(iv)On December 22, 2020, the Company entered into an agreement to charter-in a 63,634 dwt, 2021-built Ultramax vessel for twelve months with an option to extend for an additional three months at a hire rate of $5,900 per day plus 57% of the BSI and an option to extend for an additional eleven to thirteen months at a hire rate of $6,500 per day plus 57% of the BSI. In addition, the agreement requires the Company to share 50% of the scrubber benefit with the lessor, calculated as the price differential between high sulfur and low sulfur fuel oil based on actual bunker consumption during the lease term. The Company took delivery of the vessel in July 2021. In May 2022, the Company exercised its option for the additional eleven to thirteen month period. The lease is expected to terminate in September 2023.

(v)On September 6, 2021, the Company entered into an agreement to charter-in a 64,539 dwt, 2022-built Ultramax vessel for twelve months with an option to extend for an additional three months at a hire rate of $11,250 per day plus 57.5% of the BSI and an option to extend for an additional year at a hire rate of $10,750 per day plus 57.5% of the BSI. The Company took delivery of the vessel in May 2022 and the lease is expected to terminate in June 2023.

During the fourth quarter of 2022, the Company determined that impairment indicators were present for one of our chartered-in vessel contracts and, as a result, recorded an operating lease right-of-use asset impairment of $2.2 million in the Consolidated Statement of Operations for the year ended December 31, 2022. In 2020, the Company determined that impairment indicators were present for one of our chartered-in vessel contracts and, as a result, recorded an operating lease right-of-use asset impairment of $0.4 million in the Consolidated Statement of Operations for the year ended December 31, 2020.

On October 15, 2015, the Company entered into a commercial lease agreement as a sublessee for office space in Stamford, Connecticut. The lease is effective from January 2016 through June 2023, with an average annual rent of $0.4 million. On September 30, 2022, the Company entered into a lease agreement as principal tenant to lease the same office space effective July 1, 2023 through December 31, 2028 with an average annual rent of $0.5 million.

In November 2018, the Company entered into a lease agreement for office space in Singapore for an original term of three years, which was set to expire in October 2021, with an average annual rent of $0.3 million. In August 2021, the Company renewed the lease for a term of five years from March 15, 2022 with an average annual rent of $0.3 million. This lease is expected to expire in March 2027.

In August 2021, the Company entered into a lease agreement for an additional office space in Singapore for a term of fifty-seven months from June 15, 2022, with an average annual rent of $0.1 million. The Company took possession of the premises in February 2022. This lease is expected to terminate in March 2027.

The Company determined each of its office leases to be operating leases and recorded the related lease expense as General and administrative expenses in the Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020.

A summary of Operating lease right-of-use assets and operating lease liabilities balances, by asset type, and certain additional quantitative information related to the Company’s operating leases as of December 31, 2022 and 2021 is as follows:


Description	December 31, 2022			December 31, 2021
Operating lease right-of-use assets
Time charter-in contracts greater than 12 months	$	19,116		$	15,039
Office leases	3,890			1,978
	$	23,006		$	17,017
Current portion of operating lease liabilities
Time charter-in contracts greater than 12 months	$	21,328		$	15,039
Office leases	717			689
	$	22,045		$	15,728
Noncurrent portion of operating lease liabilities
Time charter-in contracts greater than 12 months	$	—		$	—
Office leases	3,173			1,282
	$	3,173		$	1,282
Weighted average remaining lease term (in years)
Time charter-in contracts greater than 12 months	0.6			0.7
Office leases	4.7			4.0
Weighted average discount rate
Time charter-in contracts greater than 12 months	6.0		%	1.4		%
Office leases	6.9		%	4.1		%


	For the Years Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Operating lease cost
Time charter-in contracts greater than twelve months	$	28,282	$	16,548	$	12,548
Office leases	748		642		734
Short-term lease cost
Time charter-in contracts less than twelve months	52,821		20,553		8,732
Total lease cost	$	81,851	$	37,743	$	22,014

Sublease income, gross
Time charter-in contracts greater than twelve months(1)	$	32,980	$	25,372	$	8,589


	For the Years Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Cash paid for operating leases with lease terms greater than twelve months	$	29,130	$	18,051	$	14,018

Non-cash activities
Operating lease right-of-use assets obtained in exchange for lease liabilities	$	38,956	$	22,499	$	—


	Time charter-in contracts greater than 12 months		Office leases		Total Operating leases
Year:
2023	$	21,651	$	869	$	22,520
2024	—		874		874
2025	—		871		871
2026	—		871		871
2027	—		574		574
Thereafter	—		500		500
	21,651		4,559		26,210
Implied interest	(323)		(669)		(992)
Total operating lease liabilities	$	21,328	$	3,890	$	25,218