GENCO SHIPPING & TRADING LTD, 10-K filed on 2/24/2022
Annual Report
v3.22.0.1
Document and Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Feb. 24, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Document Transition Report false    
Entity File Number 001-33393    
Entity Registrant Name GENCO SHIPPING & TRADING LIMITED    
Entity Incorporation, State or Country Code 1T    
Entity Tax Identification Number 98-0439758    
Entity Address, Address Line One 299 Park Avenue    
Entity Address, Address Line Two 12th Floor    
Entity Address, City or Town New York    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10171    
City Area Code 646    
Local Phone Number 443-8550    
Title of 12(b) Security Common Stock, par value $.01 per share    
Trading Symbol GNK    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 671.7
Entity Common Stock, Shares Outstanding   41,957,724  
Auditor Name Deloitte & Touche LLP    
Auditor Firm ID 34    
Auditor Location New York, New York    
Entity Central Index Key 0001326200    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 114,573 $ 143,872
Restricted cash 5,643 35,492
Due from charterers, net of a reserve of $1,403 and $669, respectively 20,116 12,991
Prepaid expenses and other current assets 9,935 10,856
Inventories 24,563 21,583
Vessels held for sale   22,408
Total current assets 174,830 247,202
Noncurrent assets:    
Vessels, net of accumulated depreciation of $253,005 and $204,201, respectively 981,141 919,114
Deposits on vessels 18,543  
Vessels held for exchange   38,214
Deferred drydock, net of accumulated amortization of $12,879 and $8,124 respectively 14,275 14,689
Fixed assets, net of accumulated depreciation and amortization of $3,984 and $2,266, respectively 7,237 6,393
Operating lease right-of-use assets 5,495 6,882
Restricted cash 315 315
Fair value of derivative instruments 1,166  
Total noncurrent assets 1,028,172 985,607
Total assets 1,203,002 1,232,809
Current liabilities:    
Accounts payable and accrued expenses 29,956 22,793
Current portion of long-term debt   80,642
Deferred revenue 10,081 8,421
Current operating lease liabilities 1,858 1,765
Total current liabilities: 41,895 113,621
Noncurrent liabilities:    
Long-term operating lease liabilities 6,203 8,061
Contract liability   7,200
Long-term debt, net of deferred financing costs of $7,771 and $9,653, respectively 238,229 358,933
Total noncurrent liabilities 244,432 374,194
Total liabilities 286,327 487,815
Commitments and contingencies (Note 15)
Equity:    
Common stock, par value $0.01; 500,000,000 shares authorized; 41,924,597 and 41,801,753 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively 419 418
Additional paid-in capital 1,702,166 1,713,406
Accumulated other comprehensive income 825  
Accumulated deficit (786,823) (968,830)
Total Genco Shipping & Trading Limited shareholders' equity 916,587 744,994
Noncontrolling interest 88  
Total equity 916,675 744,994
Total liabilities and equity $ 1,203,002 $ 1,232,809
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current Assets:    
Due from charterers, reserve $ 1,403 $ 669
Noncurrent assets:    
Vessels, accumulated depreciation 253,005 204,201
Deferred drydock, accumulated amortization 12,879 8,124
Fixed assets, accumulated depreciation and amortization 3,984 2,266
Deferred financing costs, noncurrent $ 7,771 $ 9,653
Genco Shipping & Trading Limited shareholders' equity:    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 41,924,597 41,801,753
Common stock, shares outstanding (in shares) 41,924,597 41,801,753
v3.22.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenues:      
Total revenues $ 547,129 $ 355,560 $ 389,496
Operating expenses:      
Voyage expenses 146,182 156,985 173,043
Vessel operating expenses 82,089 87,420 96,209
Charter hire expenses 36,370 10,307 16,179
General and administrative expenses (inclusive of nonvested stock amortization expense of $2,267, $2,026 and $2,057, respectively) 24,454 21,266 24,516
Technical management fees 5,612 6,961 7,567
Depreciation and amortization 56,231 65,168 72,824
Impairment of vessel assets   208,935 27,393
(Gain) loss on sale of vessels (4,924) 1,855 168
Total operating expenses 346,014 558,897 417,899
Operating income (loss) 201,115 (203,337) (28,403)
Other income (expense):      
Other income (expense) 541 (851) 501
Interest income 154 1,028 4,095
Interest expense (15,357) (22,413) (31,955)
Impairment of right-of-use asset     (223)
Loss on debt extinguishment (4,408)    
Other expense, net (19,070) (22,236) (27,582)
Net income (loss) 182,045 (225,573) (55,985)
Less: Net loss attributable to noncontrolling interest 38    
Net income (loss) attributable to Genco Shipping & Trading Limited $ 182,007 $ (225,573) $ (55,985)
Net earnings (loss) per share-basic $ 4.33 $ (5.38) $ (1.34)
Net earnings (loss) per share-diluted $ 4.27 $ (5.38) $ (1.34)
Weighted average common shares outstanding-basic 42,060,996 41,907,597 41,762,893
Weighted average common shares outstanding-diluted 42,588,871 41,907,597 41,762,893
Voyage      
Revenues:      
Total revenues $ 547,129 $ 355,560 $ 389,496
v3.22.0.1
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Consolidated Statements of Operations      
Nonvested stock amortization expenses $ 2,267 $ 2,026 $ 2,057
v3.22.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Consolidated Statements of Comprehensive Income (Loss)      
Net income (loss) $ 182,045 $ (225,573) $ (55,985)
Other comprehensive income 825 0 0
Comprehensive income (loss) 182,870 (225,573) (55,985)
Less: Comprehensive loss attributable to noncontrolling interest 38    
Comprehensive income (loss) attributable to Genco Shipping & Trading Limited $ 182,832 $ (225,573) $ (55,985)
v3.22.0.1
Consolidated Statements of Equity - USD ($)
$ in Thousands
Genco Shipping & Trading Limited Shareholders' Equity
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income
Accumulated Deficit
Noncontrolling Interest
Total
Balance at Dec. 31, 2018 $ 1,053,307 $ 416 $ 1,740,163   $ (687,272)   $ 1,053,307
Increase (Decrease) in Shareholders' Equity              
Net income (loss) (55,985)       (55,985)   (55,985)
Other comprehensive income             0
Issuance of shares of vested RSUs   1 (1)        
Cash dividends declared (20,951)   (20,951)       (20,951)
Nonvested stock amortization 2,057   2,057       2,057
Balance at Dec. 31, 2019 978,428 417 1,721,268   (743,257)   978,428
Increase (Decrease) in Shareholders' Equity              
Net income (loss) (225,573)       (225,573)   (225,573)
Other comprehensive income             0
Issuance of shares of vested RSUs   1 (1)        
Cash dividends declared (9,887)   (9,887)       (9,887)
Nonvested stock amortization 2,026   2,026       2,026
Balance at Dec. 31, 2020 744,994 418 1,713,406   (968,830)   744,994
Increase (Decrease) in Shareholders' Equity              
Net income (loss) 182,007       182,007 $ 38 182,045
Other comprehensive income 825     $ 825     825
Issuance of shares due to vesting of RSUs and exercise of options   1 (1)        
Cash dividends declared (13,506)   (13,506)       (13,506)
Nonvested stock amortization 2,267   2,267       2,267
Non-controlling interest initial investment           50 50
Balance at Dec. 31, 2021 $ 916,587 $ 419 $ 1,702,166 $ 825 $ (786,823) $ 88 $ 916,675
v3.22.0.1
Consolidated Statements of Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Consolidated Statements of Equity      
Dividends declared per share $ 0.32 $ 0.235 $ 0.50
v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net income (loss) $ 182,045 $ (225,573) $ (55,985)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 56,231 65,168 72,824
Amortization of deferred financing costs 3,536 3,903 3,788
Amortization of fair market value of time charters acquired (4,263)    
Right-of-use asset amortization 1,387 1,359 1,246
Amortization of nonvested stock compensation expense 2,267 2,026 2,057
Impairment of right-of-use asset     223
Impairment of vessel assets   208,935 27,393
(Gain) loss on sale of vessels (4,924) 1,855 168
Loss on debt extinguishment 4,408    
Amortization of premium on derivative 197    
Interest rate cap premium payment (240)    
Insurance proceeds for protection and indemnity claims 988 569 494
Insurance proceeds for loss of hire claims   78  
Change in assets and liabilities:      
(Increase) decrease in due from charterers (7,125) 710 8,605
Increase in prepaid expenses and other current assets (783) (1,938) (789)
(Increase) decrease in inventories (2,980) 5,625 2,340
Increase (decrease) in accounts payable and accrued expenses 5,405 (17,355) 13,172
Increase in deferred revenue 1,660 1,794 223
Decrease in operating lease liabilities (1,765) (1,677) (1,592)
Deferred drydock costs incurred (4,925) (8,583) (14,641)
Net cash provided by operating activities 231,119 36,896 59,526
Cash flows from investing activities:      
Purchase of vessels and ballast water treatment systems, including deposits (115,680) (4,485) (13,960)
Purchase of scrubbers (capitalized in Vessels) (199) (10,973) (31,750)
Purchase of other fixed assets (1,585) (4,580) (4,714)
Net proceeds from sale of vessels 49,473 56,993 26,963
Insurance proceeds for hull and machinery claims 418 484 612
Net cash (used in) provided by investing activities (67,573) 37,439 (22,849)
Cash flows from financing activities:      
Payment of common stock issuance costs     (105)
Investment by non-controlling interest 50    
Cash dividends paid (13,463) (9,847) (20,877)
Payment of deferred financing costs (6,053) (462) (611)
Net cash used in financing activities (222,694) (56,905) (77,189)
Net (decrease) increase in cash, cash equivalents and restricted cash (59,148) 17,430 (40,512)
Cash, cash equivalents and restricted cash at beginning of period 179,679 162,249 202,761
Cash, cash equivalents and restricted cash at end of period 120,531 179,679 162,249
Secured Debt | $450 Million Credit Facility      
Cash flows from financing activities:      
Proceeds from credit facility 350,000    
Repayment of secured debt (104,000)    
Secured Debt | $133 Million Credit Facility      
Cash flows from financing activities:      
Proceeds from credit facility   24,000  
Repayment of secured debt (114,940) (9,160) (6,320)
Secured Debt | $495 Million Credit Facility      
Cash flows from financing activities:      
Proceeds from credit facility   11,250 21,500
Repayment of secured debt $ (334,288) $ (72,686) $ (70,776)
v3.22.0.1
GENERAL INFORMATION
12 Months Ended
Dec. 31, 2021
GENERAL INFORMATION  
GENERAL INFORMATION

1 – GENERAL INFORMATION

The accompanying consolidated financial statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. GS&T is incorporated under the laws of the Marshall Islands and as of December 31, 2021, is the direct or indirect owner of all of the outstanding shares or limited liability company interests of the following subsidiaries: Genco Ship Management LLC; Genco Investments LLC; Genco RE Investments LLC; Genco Shipping Pte. Ltd.; Genco Shipping A/S; Baltic Trading Limited (“Baltic Trading”); and the ship-owning subsidiaries as set forth below under “Other General Information.”

During September 2021, the Company and Synergy Marine Pte. Ltd. (“Synergy”), a third party, formed a joint venture, GS Shipmanagement Pte. Ltd. (“GSSM”). GSSM is owned 50% by the Company and 50% by Synergy as of December 31, 2021, and was formed to provide ship management services to the Company’s vessels. As of December 31, 2021, the investments GSSM received from the Company and Synergy totaled $50 and $50, respectively, which were used for expenditures directly related to the operations of GSSM.

Management has determined that GSSM qualifies as a variable interest entity, and, when aggregating the variable interest held by the Company and Synergy, the Company is the primary beneficiary as the Company has the ability to direct the activities that most significantly impact GSSM’s economic performance. Accordingly, the Company consolidates GSSM.

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus strain, or COVID-19, to be a pandemic. The COVID-19 pandemic continues to have widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Over the course of the pandemic, governments have implemented measures in an effort to contain the virus, including social distancing, travel restrictions, border closures, limitations on public gatherings, working from home, supply chain logistical changes, and closure of non-essential businesses. This has led to a significant slowdown in overall economic activity levels globally and a decline in demand for certain of the raw materials that our vessels transport.

At present, it is not possible to ascertain any future impact of COVID-19 on the Company’s operational and financial performance, which may take some time to materialize and may not be fully reflected in the results for 2021. However, an increase in the severity or duration or a resurgence of the COVID-19 pandemic, any potential variants and the timing of wide-scale vaccine distribution could have a material adverse effect on the Company’s business, results of operations, cash flows, financial condition, the carrying value of the Company’s assets, the fair values of the Company’s vessels, and the Company’s ability to pay dividends. 

Other General Information

As of December 31, 2021, 2020 and 2019, the Company’s fleet consisted of 42, 47 and 55 vessels, respectively.

Below is the list of Company’s wholly owned ship-owning subsidiaries as of December 31, 2021:

Wholly Owned Subsidiaries

    

Vessel Acquired

    

Dwt

    

Delivery Date

    

Year Built

 

Genco Augustus Limited

 

Genco Augustus

 

180,151

 

8/17/07

 

2007

Genco Tiberius Limited

 

Genco Tiberius

 

175,874

 

8/28/07

 

2007

Genco London Limited

 

Genco London

 

177,833

 

9/28/07

 

2007

Genco Titus Limited

 

Genco Titus

 

177,729

 

11/15/07

 

2007

Genco Warrior Limited

 

Genco Warrior

 

55,435

 

12/17/07

 

2005

Genco Predator Limited

 

Genco Predator

 

55,407

 

12/20/07

 

2005

Genco Hunter Limited

 

Genco Hunter

 

58,729

 

12/20/07

 

2007

Genco Constantine Limited

 

Genco Constantine

 

180,183

 

2/21/08

 

2008

Genco Hadrian Limited

 

Genco Hadrian

 

169,025

 

12/29/08

 

2008

Genco Commodus Limited

 

Genco Commodus

 

169,098

 

7/22/09

 

2009

Genco Maximus Limited

 

Genco Maximus

 

169,025

 

9/18/09

 

2009

Genco Claudius Limited

 

Genco Claudius

 

169,001

 

12/30/09

 

2010

Genco Aquitaine Limited

 

Genco Aquitaine

 

57,981

 

8/18/10

 

2009

Genco Ardennes Limited

 

Genco Ardennes

 

58,018

 

8/31/10

 

2009

Genco Auvergne Limited

 

Genco Auvergne

 

58,020

 

8/16/10

 

2009

Genco Bourgogne Limited

 

Genco Bourgogne

 

58,018

 

8/24/10

 

2010

Genco Brittany Limited

 

Genco Brittany

 

58,018

 

9/23/10

 

2010

Genco Languedoc Limited

 

Genco Languedoc

 

58,018

 

9/29/10

 

2010

Genco Picardy Limited

 

Genco Picardy

 

55,257

 

8/16/10

 

2005

Genco Pyrenees Limited

 

Genco Pyrenees

 

58,018

 

8/10/10

 

2010

Genco Rhone Limited

 

Genco Rhone

 

58,018

 

3/29/11

 

2011

Genco Weatherly Limited

Genco Weatherly

61,556

7/26/18

2014

Genco Columbia Limited

Genco Columbia

60,294

9/10/18

2016

Genco Endeavour Limited

Genco Endeavour

181,060

8/15/18

2015

Genco Resolute Limited

Genco Resolute

181,060

8/14/18

2015

Genco Defender Limited

Genco Defender

180,021

9/6/18

2016

Genco Liberty Limited

Genco Liberty

180,032

9/11/18

2016

Genco Magic Limited

Genco Magic

63,446

12/23/20

2014

Genco Vigilant Limited

Genco Vigilant

63,498

1/28/21

2015

Genco Freedom Limited

Genco Freedom

63,671

2/2/21

2015

Genco Enterprise Limited

Genco Enterprise

63,473

8/23/21

2016

Genco Madeleine Limited

Genco Madeleine

63,166

8/23/21

2014

Genco Mayflower Limited

Genco Mayflower

63,304

8/24/21

2017

Genco Constellation Limited

Genco Constellation

63,310

9/3/21

2017

Baltic Lion Limited

Baltic Lion

179,185

4/8/15

(1)

2012

Baltic Tiger Limited

Genco Tiger

179,185

4/8/15

(1)

2011

Baltic Bear Limited

 

Baltic Bear

 

177,717

 

5/14/10

2010

Baltic Wolf Limited

 

Baltic Wolf

 

177,752

 

10/14/10

2010

Baltic Hornet Limited

 

Baltic Hornet

 

63,574

 

10/29/14

2014

Baltic Wasp Limited

 

Baltic Wasp

 

63,389

 

1/2/2015

2015

Baltic Scorpion Limited

 

Baltic Scorpion

 

63,462

 

8/6/15

2015

Baltic Mantis Limited

 

Baltic Mantis

 

63,470

 

10/9/15

2015

(1)The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading.
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries and GSSM. All intercompany accounts and transactions have been eliminated in consolidation.

Business geographics

The Company’s vessels regularly move between countries in international waters, over hundreds of trade routes and, as a result, the disclosure of geographic information is impracticable.

Vessel acquisitions

When the Company enters into an acquisition transaction, it determines whether the acquisition transaction was the purchase of an asset or a business based on the facts and circumstances of the transaction. As is customary in the shipping industry, the purchase of a vessel is normally treated as a purchase of an asset as the historical operating data for the vessel is not reviewed nor is it material to the Company’s decision to make such acquisition.

When a vessel is acquired with an existing time charter, the Company allocates the purchase price to the vessel and the time charter based on, among other things, vessel market valuations and the present value (using an interest rate which reflects the risks associated with the acquired charters) of the difference between (i) the contractual amounts to be paid pursuant to the charter terms and (ii) management’s estimate of the fair market charter rate, measured over a period equal to the remaining term of the charter. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction or increase, respectively, to voyage revenues over the remaining term of the charter.

Segment reporting

The Company reports financial information and evaluates its operations by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters. Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.

Revenue recognition

Since the Company’s inception, revenues have been generated from time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters. Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

Time charters

A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement. Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”).

The Company records time charter revenues, including spot market-related time charters, over the term of the charter as service is provided. Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement for which the performance obligations are satisfied beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period. As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market. Time charter contracts, including spot market-related time charters, are considered operating leases and therefore do not fall under the scope of Accounting Standards Codification (“ASC”) 606 Revenue from Contracts with Customers (“ASC 606”) because (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives economic benefit from such use.

The Company has identified that time charter agreements, including fixed rate time charters and spot market-related time charters, contain a lease in accordance with ASC 842 (as defined under “Recent accounting pronouncements” below). Refer to Note 13 — Voyage Revenues for further discussion.

 

Spot market voyage charters

In a spot market voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage, which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or “dead” freight. The contract generally has a “demurrage” or “despatch” clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage or despatch paid by the Company for the years ended December 31, 2021, 2020 and 2019 is not material.

Revenue for spot market voyage charters is recognized ratably over the total transit time of each voyage, which commences at the time the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port.

Voyage expense recognition

In time charters and spot market-related time charters, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. Refer to Note 13 — Voyage Revenues for further discussion of the accounting for fuel expenses for spot market voyage charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net (gain) loss of ($1,889), $697 and $829 during the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

Loss on debt extinguishment

 

During the year ended December 31, 2021, the Company recorded $4,408 related to the loss on the extinguishment of debt in accordance with ASC 470-50 — “Debt – Modifications and Extinguishments” (“ASC 470-50”). This loss was recognized as a result of the refinancing of the $495 Million Credit Facility and the $133 Million Credit Facility with the $450 Million Credit Facility on August 31, 2021 as described in Note 7 — Debt.

Due from charterers, net

Due from charterers, net includes accounts receivable from charters, including receivables for spot market voyages, net of the provision for doubtful accounts. At each balance sheet date, the Company records the provision based on a review of all outstanding charter receivables. Included in the standard time charter contracts with the Company’s customers are certain performance parameters which, if not met, can result in customer claims. As of December 31, 2021 and 2020, the Company had a reserve of $1,403 and $669, respectively, against the due from charterers balance and an additional accrual of $364 and $358, respectively, in deferred revenue, each of which is primarily associated with estimated customer claims against the Company including vessel performance issues under time charter agreements.

Revenue is based on contracted charterparties. However, there is always the possibility of dispute over terms and payment of hires and freights. In particular, disagreements may arise concerning the responsibility of lost time and

revenue. Accordingly, the Company periodically assesses the recoverability of amounts outstanding and estimates a provision if there is a possibility of non-recoverability. The Company believes its provisions to be reasonable based on information available.

Inventories

Inventories consist of consumable bunkers and lubricants that are stated at the lower of cost and net realizable value. Cost is determined by the first in, first out method.

 

Vessel operating expenses

Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, and other miscellaneous expenses. Vessel operating expenses are recognized when incurred.

Charter hire expenses

 

The costs to charter-in third party vessels, which primarily include the daily charter hire rate net of commissions, are recorded as Charter hire expenses. The Company recorded $36,370, $10,307 and $16,179 of charter hire expenses during the years ended December 31, 2021, 2020 and 2019, respectively.

Technical management fees

Technical management fees represent fees paid to third party technical management companies for the day-to-day management of our vessels, including performing routine maintenance, attending to vessel operation and arranging for crews and supplies. In addition, technical management fees also include the direct costs, including operating costs, incurred by GSSM for the technical management of the vessels under its management.

Vessels, net

Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the years ended December 31, 2021, 2020 and 2019 was $49,417, $58,008 and $66,351, respectively.

Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the estimated scrap value of $310 per lightweight ton (“lwt”) times the weight of the vessel noted in lwt. Effective January 1, 2022, the Company increased the estimated scrap value of the vessels from $310 per lwt to $400 per lwt prospectively based on the average of the 15-year average scrap value of steel. The change in the estimated scrap value will result in a decrease in depreciation expense over the remaining life of the vessel assets. The Company expects depreciation to decrease by approximately $4.5 million during 2022 as a result of the prospective change in the scrap value.

Vessels held for sale

The Company’s Board of Directors has approved a strategy of divesting specifically identified older, less fuel-efficient vessels as part of a fleet renewal program to streamline and modernize the Company’s fleet.

On November 3, 2020, November 27, 2020 and November 30, 2020, the Company entered into agreements to sell the Baltic Panther, the Baltic Hare and the Baltic Cougar, respectively. The relevant vessel assets have been classified as held for sale in the Consolidated Balance Sheet as of December 31, 2020. The Baltic Panther, the Baltic Hare and the Baltic Cougar were sold on January 4, 2021, January 15, 2021 and February 24, 2021, respectively.

Vessels held for exchange

The remaining five vessel assets to be exchanged as part of an agreement entered into by the Company on December 17, 2020 have been classified as vessels held for exchange in the Consolidated Balance Sheet as of December 31, 2020 in the amount of $38,214, after recognition of impairment. This includes the vessel assets for the Baltic Cove, the Baltic Fox, the Genco Avra, the Genco Mare and the Genco Spirit. These vessels were exchanged during the first quarter of 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement.

Contract liability

The Company has recorded a contract liability of $7,200 as of December 31, 2020 which is related to the timing of the exchange of vessels pursuant to the agreement entered into by the Company on December 17, 2020 to exchange six of the Company’s Handysize vessels for three Ultramax vessels owned by the counterparty. As of December 31, 2020, the Company completed the exchange of one of its Handysize vessels, the Genco Ocean, for one Ultramax vessel, the Genco Magic. The $7,200 contract liability represents the excess of fair value of the vessels received as of December 31, 2020 over the fair value of the vessel contributed to the counterparty. The exchange of the remainder of the vessels under the agreement were completed during the first quarter of 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement.

Fixed assets, net

Fixed assets, net is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are based on a straight line basis over the estimated useful life of the specific asset placed in service. The following table is used in determining the typical estimated useful lives:

Description

    

Useful lives

Leasehold improvements

 

Lesser of the estimated useful life of the asset or life of the lease

Furniture, fixtures & other equipment

 

5 years

Vessel equipment

 

2-15 years

Computer equipment

 

3 years

Depreciation and amortization expense for fixed assets for the years ended December 31, 2021, 2020 and 2019 was $1,759, $1,562 and $989, respectively.

Deferred drydocking costs

The Company’s vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating. The Company defers the costs associated with the drydockings as they occur and amortizes these costs on a straight-line basis over the period between drydockings. Costs deferred as part of a vessel’s drydocking include actual costs incurred at the drydocking yard; cost of travel, lodging and subsistence of personnel sent to the drydocking site to supervise; and the cost of hiring a third party to oversee the drydocking. If the vessel is drydocked earlier than originally anticipated, any remaining deferred drydock costs that have not been amortized are expensed at the end of the next drydock.

Amortization expense for drydocking for the years ended December 31, 2021, 2020 and 2019 was $5,055, $5,598 and $5,484, respectively, and is included in Depreciation and amortization expense in the Consolidated

Statements of Operations. All other costs incurred during drydocking are expensed as incurred, with the exception of other capitalized costs incurred related to vessel assets and vessel equipment.

Impairment of long-lived assets

During the year ended December 31, 2021, the Company did not incur any impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). During the years ended December 31, 2020 and 2019, the Company recorded $208,935 and $27,393, respectively, related to the impairment of vessel assets in accordance with ASC 360. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets.

When the Company performs its analysis of the anticipated undiscounted future net cash flows, the Company utilizes various assumptions based on historical trends. Specifically, the Company utilizes the rates currently in effect for the duration of their current time charters or spot market voyage charters, without assuming additional profit sharing.  For periods of time during which the Company’s vessels are not fixed on time charters or spot market voyage charters, the Company utilizes an estimated daily time charter equivalent for the vessels’ unfixed days based on the most recent ten year historical one-year time charter average.  In addition, the Company considers the current market rate environment and, if necessary, will adjust its estimates of future undiscounted cash flows to reflect the current rate environment. The projected undiscounted future net cash flows are determined by considering the future voyage revenues from existing time charters for the fixed fleet days and an estimated daily time charter equivalent for the unfixed days over the estimated remaining life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, reduced by brokerage and address commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking and special survey expenditures) and required capital expenditures adjusted annually for inflation, assuming fleet utilization of 98%. The salvage value used in the impairment test is estimated to be $310 per light weight ton, consistent with the Company’s depreciation policy during 2021.

On January 22, 2021, the Company entered into an agreement to sell the Genco Lorraine, a 2009-built Supramax vessel, to a third party for $7,950 less a 2.5% commission payable to a third party. Additionally, on January 25, 2021, the Company entered into an agreement to sell the Baltic Leopard, a 2009-built Supramax vessel, to a third party for $8,000 less a 2.0% commission payable to a third party. As the undiscounted cash flows, including the net sales price, did not exceed the net book value of the Genco Lorraine and the Baltic Leopard as of December 31, 2020, the vessels values for the Genco Lorraine and the Baltic Leopard were adjusted to their net sales prices of $7,751 and $7,840 as of December 31, 2020, respectively. This resulted in an impairment loss of $404 and $399 for the Genco Lorraine and the Baltic Leopard, respectively, during the year ended December 31, 2020.

As of December 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for nine of its Supramax vessels, the Genco Aquitaine, the Genco Ardennes, the Genco Auvergne, the Genco Bourgogne, the Genco Brittany, the Genco Hunter, the Genco Languedoc, the Genco Pyrenees and the Genco Rhone, did not exceed the net book value of these vessels. The Company adjusted the carrying value of these vessels to their respective fair market values as of December 31, 2020 which resulted in an impairment loss of $67,200 during the year ended December 31, 2020.

On December 17, 2020, the Company entered into an agreement to acquire three Ultramax vessels in exchange for six of our Handysize vessels. The six Handysize vessels include the Genco Ocean, the Baltic Cove and the Baltic Fox, all 2010-built Handysize vessels, and the Genco Avra, the Genco Mare and the Genco Spirit, all 2011-built Handysize vessels. The values for these six Handysize vessels were adjusted to their total fair market value of $46,000 as of the date of the agreement less a 1.0% commission payable to a third party which resulted in an impairment loss of $4,647 during the year ended December 31, 2020.

On November 30, 2020, the Company entered into an agreement to sell the Genco Cougar, a 2009-built Supramax vessel, to a third party for $7,600 less a 3.0% commission payable to a third party. Therefore, the vessel value

for the Baltic Cougar was adjusted to its net sales price of $7,372 as of December 31, 2020. This resulted in an impairment loss of $790 during the year ended December 31, 2020.

On November 27, 2020, the Company entered into an agreement to sell the Baltic Hare, a 2009-built Handysize vessel, to a third party for $7,750 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Baltic Hare was adjusted to its net sales price of $7,595 as of December 31, 2020. This resulted in an impairment loss of $769 during the year ended December 31, 2020.

On November 3, 2020, the Company entered into an agreement to sell the Baltic Panther, a 2009-built Supramax vessel, to a third party for $7,510 less a 3.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Baltic Panther was adjusted to its net sales price of $7,285 as of September 30, 2020. This resulted in an impairment loss of $3,713 during the year ended December 31, 2020.

On October 16, 2020, the Company entered into an agreement to sell the Genco Loire, a 2009-built Supramax vessel, to a third party for $7,650 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Genco Loire was adjusted to its net sales price of $7,497 as of September 30, 2020. This resulted in an impairment loss of $3,408 during the year ended December 31, 2020.

On September 30, 2020, the Company determined that the expected estimated future undiscounted cash flows for three of its Supramax vessels, the Genco Lorraine, the Baltic Cougar and the Baltic Leopard, did not exceed the net book value of these vessels as of September 30, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of September 30, 2020. This resulted in an impairment loss of $7,963 during the year ended December 31, 2020.

On September 25, 2020, the Company entered into an agreement to sell the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% commission payable to a third party. Therefore, the vessel value for the Baltic Jaguar was adjusted to its net sales price of $7,081 as of September 30, 2020. This resulted in an impairment loss of $4,140 during the year ended December 31, 2020.

On September 17, 2020, the Company entered in an agreement to sell the Genco Normandy, a 2007-built Supramax vessel, to a third party for $5,850 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Genco Normandy was adjusted to its net sales price of $5,733 as of September 30, 2020. This resulted in an impairment loss of $2,679 during the year ended December 31, 2020.

At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of its Supramax vessels, the Genco Picardy, the Genco Predator, the Genco Provence and the Genco Warrior, did not exceed the net book value of these vessels as of March 31, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of March 31, 2020. This resulted in an impairment loss of $27,055 during the year ended December 31, 2020.

On February 24, 2020, the Board of Directors determined to dispose of the Company’s following ten Handysize vessels: the Baltic Hare, the Baltic Fox, the Baltic Wind, the Baltic Cove, the Baltic Breeze, the Genco Ocean, the Genco Bay, the Genco Avra, the Genco Mare and the Genco Spirit, at times and on terms to be determined in the future.  Given this decision, and that the revised estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel given the estimated probabilities of whether the vessels will be sold, the Company adjusted the values of these older vessels to their respective fair market values during the three months ended March 31, 2020. Subsequent to February 24, 2020, the Company has entered into agreements to sell three of these vessels during the three months ended March 31, 2020, namely the Baltic Wind, the Baltic Breeze and the Genco Bay, which were adjusted to their net sales price. This resulted in an impairment loss of $85,768 during the year ended December 31, 2020.

On February 3, 2020, the Company entered into an agreement to sell the Genco Charger, a 2005-built Handysize vessel, to a third party for $5,150 less a 1.0% commission payable to a third party.   As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of December 31, 2019, the vessel value for the Genco Charger was adjusted to its net sales price of $5,099 as of December 31, 2019. This resulted in an impairment loss of $1,314 during the year ended December 31, 2019.

On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, to a third party for $10,200 less a 2.0% commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2019, the vessel value for the Genco Raptor was adjusted to its net sales price of $9,996 as of September 30, 2019. This resulted in an impairment loss of $5,812 during the year ended December 31, 2019.

On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, a 2007-built Panamax vessel, for $10,400 less a 2.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Thunder was adjusted to its net sales price of $10,192 as of September 30, 2019.  This resulted in an impairment loss of $5,749 during the year ended December 31, 2019. 

 On September 20, 2019, the Company entered into an agreement to sell the Genco Champion, a 2006-built Handysize vessel, for $6,600 less a 3.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Champion was adjusted to its net sales price of $6,402 as of September 30, 2019.  This resulted in an impairment loss of $621 during the year ended December 31, 2019. 

On August 2, 2019, the Company entered into an agreement to sell the Genco Challenger, a 2003-built Handysize vessel, for $5,250 less a 2.0% broker commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2019, the vessel value for the Genco Challenger was adjusted to its net sales price of $5,145 as of June 30, 2019.  This resulted in an impairment loss of $4,401 during the year ended December 31, 2019.  

 

At June 30, 2019, the Company determined that the expected estimated future undiscounted cash flows for the Genco Champion, a 2006-built Handysize vessel, and the Genco Charger, a 2005-built Handysize vessel, did not exceed the net book value of these vessels as of June 30, 2019.  As such, the Company adjusted the value of these vessels to their respective fair market values as of June 30, 2019.  This resulted in an impairment loss of $9,496 during the year ended December 31, 2019. 

Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of certain aforementioned vessels. 

(Gain) loss on sale of vessels

During the years ended December 31, 2021, 2020 and 2019, the Company recorded net (gains) losses of ($4,924), $1,855 and $168, respectively, related to the sale of vessels. The ($4,924) net gains recognized during the year ended December 31, 2021 related primarily to the sale of the Genco Provence, partially offset by losses related to the sale of the Baltic Panther, the Baltic Hare, the Baltic Cougar, the Baltic Leopard and the Genco Lorraine, as well as net losses associated with the exchange of the Baltic Cove, Baltic Fox, Genco Spirit, Genco Avra and Genco Mare. The $1,855 net losses recognized during the year ended December 31, 2020 related primarily to the sale of the Genco Charger, the Genco Thunder, the Baltic Wind, the Baltic Breeze, the Genco Bay, the Baltic Jaguar, the Genco Loire, the Genco Normandy and the Genco Ocean. The $168 net losses recognized during the year ended December 31, 2019 related primarily to the sale of the Genco Challenger, the Genco Champion and the Genco Raptor which was largely offset by a net gain related to the sale of the Genco Vigour. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.

Deferred financing costs

Deferred financing costs, which are presented as a direct deduction within the outstanding debt balance in the Company’s Consolidated Balance Sheets, consist of fees, commissions and legal expenses associated with securing loan facilities and other debt offerings and amending existing loan facilities. These costs are amortized over the life of the related debt and are included in Interest expense in the Consolidated Statements of Operations.

Cash, cash equivalents and restricted cash

The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:

December 31, 

December 31, 

    

2021

    

2020

 

Cash and cash equivalents

 

$

114,573

 

$

143,872

Restricted cash - current

5,643

35,492

Restricted cash - noncurrent

 

315

 

315

Cash, cash equivalents and restricted cash

 

$

120,531

 

$

179,679

United States Gross Transportation Tax

Pursuant to Section 883 of the U.S. Internal Revenue Code of 1986 (as amended) (the “Code”), qualified income derived from the international operations of ships is excluded from gross income and exempt from U.S. federal income tax if a company engaged in the international operation of ships meets certain requirements (the “Section 883 exemption”). Among other things, in order to qualify, the Company must be incorporated in a country that grants an equivalent exemption to U.S. corporations and must satisfy certain qualified ownership requirements.

The Company is incorporated in the Marshall Islands. Pursuant to the income tax laws of the Marshall Islands, the Company is not subject to Marshall Islands income tax. The Marshall Islands has been officially recognized by the Internal Revenue Service as a qualified foreign country that currently grants the requisite equivalent exemption from tax. The Company is not taxable in any other jurisdiction, with the exception of Genco Management (USA) Limited, Genco Shipping Pte. Ltd., Genco Shipping A/S, as noted in the “Income taxes” section below.

The Company will qualify for the Section 883 exemption if, among other things, (i) the Company’s stock is treated as primarily and regularly traded on an established securities market in the United States (the “publicly traded test”) or (ii) the Company satisfies the qualified shareholder test or (iii) the Company satisfies the controlled foreign corporation test (the “CFC test”). Under applicable Treasury Regulations, the publicly traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of the Company’s stock (which the Company sometimes refers to as “5% shareholders”), together own 50% or more of the Company’s stock (by vote and value) for more than half the days in such year (which the Company sometimes refers to as the “five percent override rule”), unless an exception applies. A foreign corporation satisfies the qualified shareholder test if more than 50 percent of the value of its outstanding shares is owned (or treated as owned by applying certain attribution rules) for at least half of the number of days in the foreign corporation's taxable year by one or more “qualified shareholders.” A qualified shareholder includes a foreign corporation that, among other things, satisfies the publicly traded test. A foreign corporation satisfies the CFC test if it is a “controlled foreign corporation” and one or more qualified U.S. persons own more than 50 percent of the total value of all the outstanding stock.

Based on the publicly traded requirement of the Section 883 regulations, the Company believes that it qualified for exemption from income tax on income derived from the international operations of vessels during the years ended December 31, 2021, 2020 and 2019. In order to meet the publicly traded requirement, the Company’s stock must be treated as being primarily and regularly traded for more than half the days of any such year. Under the Section 883 regulations, the Company’s qualification for the publicly traded requirement may be jeopardized if 5% shareholders own, in the aggregate, 50% or more of the Company’s common stock for more than half the days of the year. Management believes that during the years ended December 31, 2021, 2020 and 2019, the combined ownership of its 5% shareholders did not equal 50% or more of its common stock for more than half the days of each of those years.

If the Company does not qualify for the Section 883 exemption, the Company’s U.S. source shipping income, i.e., 50% of its gross shipping income attributable to transportation beginning or ending in the U.S. (but not both beginning and ending in the U.S.) is subject to a 4% tax without allowance for deductions (the “U.S. gross transportation tax”).

During the years ended December 31, 2021, 2020 and 2019, the Company qualified for Section 883 exemption and, therefore, did not record any U.S. gross transportation tax.

Income taxes

To the extent the Company’s U.S. source shipping income, or other U.S. source income, is considered to be effectively connected income, as described below, any such income, net of applicable deductions, would be subject to the U.S. federal corporate income tax, imposed at a 21% rate. In addition, the Company may be subject to a 30% "branch profits" tax on such income, and on certain interest paid or deemed paid attributable to the conduct of such trade or business. Shipping income is generally sourced 100% to the United States if attributable to transportation exclusively between United States ports (the Company is prohibited from conducting such voyages), 50% to the United States if attributable to transportation that begins or ends, but does not both begin and end, in the United States (as described in “United States Gross Transportation Tax” above) and otherwise 0% to the United States.

The Company’s U.S. source shipping income would be considered effectively connected income only if:

the Company has, or is considered to have, a fixed place of business in the U.S. involved in the earning of U.S. source shipping income; and

substantially all of the Company’s U.S. source shipping income is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the U.S.

The Company does not intend to have, or permit circumstances that would result in having, any vessel sailing to or from the U.S. on a regularly scheduled basis. Based on the current shipping operations of the Company and the Company’s expected future shipping operations and other activities, the Company believes that none of its U.S. source shipping income will constitute effectively connected income. However, the Company may from time to time generate non-shipping income that may be treated as effectively connected income.

The Company established Genco Shipping Pte. Ltd. (“GSPL”), which is based in Singapore, on September 8, 2017. GSPL applied for and was awarded the Maritime Sector Incentive – Approved International Shipping Enterprise (“MSI-AIS”) status under Section 13F of the Singapore Income Tax Act (“SITA”) by the Maritime and Port Authority of Singapore. The award is for an initial period of 10 years, commencing on August 15, 2018, and is subject to a review of performance at the end of the initial five year period.  The MSI-ASI status provides for a tax exemption on income derived by GSPL from qualifying shipping operations under Section 13F of the SITA. Income from non-qualifying activities is taxable at the prevailing Singapore Corporate income tax rate (currently 17%). During the years ended December 31, 2021, 2020 and 2019, there was no income tax recorded by GSPL.

During 2018, the Company established Genco Shipping A/S, which is a Danish-incorporated corporation which is based in Copenhagen and considered to be a resident for tax purposes in Denmark. Genco Shipping A/S was subject

to corporate taxes in Denmark a rate of 22% during 2021, 2020 and 2019. During the years ended December 31, 2021, 2020 and 2019, Genco Shipping A/S recorded $2, $407 and $241, respectively, of income tax in Other income (expense) in the Consolidated Statements of Operations.

Deferred revenue

Deferred revenue primarily relates to cash received from charterers prior to it being earned. These amounts are recognized as income when earned. Additionally, deferred revenue includes estimated customer claims mainly due to time charter performance issues. Refer to “Revenue recognition” above for description of the Company’s revenue recognition policy.

Nonvested stock awards

The Company follows ASC Subtopic 718-10, “Compensation — Stock Compensation” (“ASC 718-10”), for nonvested stock issued under its equity incentive plans. Stock-based compensation costs from nonvested stock have been classified as a component of additional paid-in capital in the Consolidated Statements of Equity.

Dividends declared

If the Company has an accumulated deficit, dividends declared will be recognized as a reduction of additional paid-in capital (“APIC”) in the Consolidated Statements of Equity until the APIC is reduced to zero. Once APIC is reduced to zero, dividends declared will be recognized as an increase in accumulated deficit.

Accounting estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels and the fair value of derivative instruments, if any. Actual results could differ from those estimates.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk are amounts due from charterers and cash and cash equivalents. With respect to amounts due from charterers, the Company attempts to limit its credit risk by performing ongoing credit evaluations and, when deemed necessary, requires letters of credit, guarantees or collateral. The Company earned all of its voyage revenues from 139, 166 and 170 customers during the years ended December 31, 2021, 2020 and 2019.

For the years ended December 31, 2021, 2020 and 2019, there were no customers that individually accounted for more than 10% of voyage revenues.

As of December 31, 2021 and 2020, the Company maintains all of its cash and cash equivalents with four and five financial institutions, respectively. None of the Company’s cash and cash equivalents balance is covered by insurance in the event of default by these financial institutions.

Fair value of financial instruments

The estimated fair values of the Company’s financial instruments, such as amounts due to / due from charterers, accounts payable and long-term debt, approximate their individual carrying amounts as of December 31, 2021 and 2020 due to their short-term maturity or the variable-rate nature of the respective borrowings under the credit facilities. See Note 9 — Fair Value of Financial Instruments for additional disclosure on the fair value of long-term debt.

Recent accounting pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”)” which provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848) – Scope (“ASU 2021-01”),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modification made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its Consolidated Financial Statements and related disclosures.

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”),” which changes the disclosure requirements for fair value measurements by removing, adding, and modifying certain disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within that year.  Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU.  The Company has evaluated the impact of the adoption of ASU 2018-03 and has determined that there is no effect on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses" ("ASU 2016-13"). ASU 2016-13 amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 was effective on January 1, 2020, with early adoption permitted.  The Company adopted ASU 2016-13 during the first quarter of 2020 and it did not have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASC 842”), which replaced the existing guidance in ASC 840 – Leases (“ASC 840”).  This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases.  Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability for leases with lease terms of more than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases, the lessee would recognize a straight-line total lease expense.  Accounting by lessors will remain largely unchanged from current U.S. GAAP.  The requirements of this standard include an increase in required disclosures.  This ASU was effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years.  Lessees and lessors were required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” which provided clarifications and improvements to ASC 842, including allowing entities to elect an additional transition method with which to adopt ASC 842. The approved transition method enables entities to apply the transition requirements at the effective date of ASC 842 (rather than at the beginning of the earliest comparative period presented as currently required) with the effect of the initial application of ASC 842 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption. As a result, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with ASC 840, including the disclosure requirements of ASC 840. The Company adopted ASC 842 on January 1, 2019 using this transition method.

The new guidance provides a number of optional practical expedients in the transition. The Company had elected the package of practical expedients, which among other things, allows the carryforward of the historical lease classification. Further, upon implementation of the new guidance, the Company has elected the practical expedients to combine lease and non-lease components and to not recognize right-of-use assets and lease liabilities for short-term leases.  Upon adoption of ASC 842 on January 1, 2019, the Company recorded a right-of-use asset of $9,710 and an

operating lease liability of $13,095 in the Consolidated Balance Sheets. Refer to Note 14 — Leases for further information regarding our operating lease agreement and the effect of the adoption of ASC 842 from a lessor perspective.  

Pursuant to ASC 842, the Company has identified revenue from its time charter agreements as lease revenue.  Refer to Note 13 — Voyage revenues for additional information regarding the adoption of ASC 842 from a lessor perspective.

v3.22.0.1
CASH FLOW INFORMATION
12 Months Ended
Dec. 31, 2021
CASH FLOW INFORMATION  
CASH FLOW INFORMATION

3 - CASH FLOW INFORMATION

For the year ended December 31, 2021, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $1,643 for the Purchase of vessels and ballast water treatment systems, including deposits, $6 for the Purchase of scrubbers, $1,160 for the Purchase of other fixed assets. For the year ended December 31, 2021, the Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expense consisting of $157 for Cash dividends payable and $9 associated with the Payment of deferred financing costs.

For the year ended December 31, 2020, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $857 for the Purchase of vessels and ballast water treatment systems, including deposits, $5 for the Purchase of scrubbers, $142 for the Purchase of other fixed assets and $99 for the Net proceeds from sale of vessels. For the year ended December 31, 2020, the Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expense consisting of $114 for Cash dividends payable.

For the year ended December 31, 2019, the Company had non-cash investing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $548 for the Purchase of vessels and ballast water treatment systems, including deposits, $9,520 for the Purchase of scrubbers, $413 for the Purchase of other fixed assets and $118 for the Net proceeds from sale of vessels. For the year ended December 31, 2019, the Company had non-cash financing activities not included in the Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $74 for Cash dividends paid.

During the year ended December 31, 2020, the Company made a reclassification of $22,408 from Vessels, net of accumulated depreciation to Vessels held for sale as the Company entered into agreements to sell the Baltic Panther, the Baltic Hare and the Baltic Cougar prior to December 31, 2020. Additionally, during the year ended December 31, 2020, the Company made a reclassification of $38,214 from Vessels, net of accumulated depreciation to Vessels held for exchange as the Company entered into an agreement to exchange the Baltic Cove, the Baltic Fox, the Genco Avra, the Genco Mare and the Genco Spirit prior to December 31, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions.

During the year ended December 31, 2019, the Company made a reclassification of $10,303 from Vessels, net of accumulated depreciation and Fixed assets, net of accumulated depreciation to Vessels held for sale due to the approval by the Board of Directors to sell the Genco Thunder prior to December 31, 2019. Refer to Note 4 — Vessel Acquisitions and Dispositions.

During the years ended December 31, 2021, 2020 and 2019, cash paid for interest, net of amounts capitalized, was $11,749, $18,420 and $28,376, respectively. Refer to Note 7 — Debt.

During the years ended December 31, 2021, 2020 and 2019, there was no cash paid for income taxes.

On May 13, 2021, the Company issued 33,525 restricted stock units to certain members of the Board of Directors. The aggregate fair value of these restricted stock units was $515.

On May 4, 2021, the Company issued 18,428 restricted stock units to a member of the Board of Directors. The aggregate fair value of these restricted stock units was $300.

On February 23, 2021, the Company issued 103,599 restricted stock units and options to purchase 118,552 shares of the Company’s stock at an exercise price of $9.91 to certain individuals. The fair value of these restricted stock units and stock options were $1,027 and $513, respectively.

On July 15, 2020, the Company issued 42,642 restricted stock units to certain members of the Board of Directors. The aggregate fair value of these restricted stock units was $255.

On February 25, 2020, the Company issued 173,749 restricted stock units and options to purchase 344,568 shares of the Company’s stock at an exercise price of $7.06 to certain individuals. The fair value of these restricted stock units and stock options were $1,227 and $693, respectively.

On May 15, 2019, the Company issued 29,580 restricted stock units to certain members of the Board of Directors.  These restricted stock units vested on July 15, 2020. The aggregate fair value of these restricted stock units was $255.

 

On March 4, 2019, the Company issued 106,079 restricted stock units and options to purchase 240,540 shares of the Company’s stock at an exercise price of $8.065, as adjusted for the special dividend declared on November 5, 2019, to certain individuals. The fair value of these restricted stock units and stock options were $890 and $904, respectively.

Refer to Note 17 — Stock-Based Compensation for further information regarding the aforementioned grants.

v3.22.0.1
VESSEL ACQUISITIONS AND DISPOSITIONS
12 Months Ended
Dec. 31, 2021
VESSEL ACQUISITIONS AND DISPOSITIONS  
VESSEL ACQUISITIONS AND DISPOSITIONS

4 - VESSEL ACQUISITIONS AND DISPOSITIONS

Vessel Acquisitions

On July 2, 2021, the Company entered into an agreement to purchase two 2017-built, 63,000 dwt Ultramax vessels for a purchase price of $24,563 each, that were renamed the Genco Mayflower and Genco Constellation, and one 2014-built, 63,000 dwt Ultramax vessel for a purchase price of $21,875, that was renamed the Genco Madeleine. The Genco Mayflower, the Genco Constellation and the Genco Madeleine were delivered on August 24, 2021, September 3, 2021 and August 23, 2021, respectively. The Company used cash on hand to finance the purchase.

These three vessels had existing below market time charters at the time of the acquisition during the third quarter of 2021; therefore the Company recorded the fair market value of time charters acquired of $4,263 which was amortized as an increase to voyage revenues during the remaining term of each respective time charter. During the year ended December 31, 2021, $4,263 was amortized into voyage revenues. There is no remaining unamortized fair market value of time charters acquired as of December 31, 2021.

On May 18, 2021, the Company entered into agreements to acquire two 2022-built 61,000 dwt newbuilding Ultramax vessels from Dalian Cosco KHI Ship Engineering Co. Ltd. for a purchase price of $29,170 each, to be renamed the Genco Mary and the Genco Laddey. The vessels were delivered to the Company on January 6, 2022. The Company used cash on hand to finance the purchase. As of December 31, 2021, deposits on vessels were $18,543. The remaining purchase price of $40,838 was paid during the first quarter of 2022 upon delivery of the vessels.

Capitalized interest expense associated with these newbuilding contracts for the year ended December 31, 2021 was $292.

On April 20, 2021, the Company entered into an agreement to purchase a 2016-built, 64,000 dwt Ultramax vessel for a purchase price of $20,200, that was renamed the Genco Enterprise. The vessel was delivered to the Company on August 23, 2021, and the Company used cash on hand to finance the purchase.

Vessel Exchange

On December 17, 2020, the Company entered into an agreement to acquire three Ultramax vessels in exchange for six Handysize vessels for a fair value of $46,000 less a 1.0% commission payable to a third party. The Genco Magic, a 2014-built Ultramax vessel, and the Genco Vigilant and the Genco Freedom, both 2015-built Ultramax vessels, were delivered to the Company on December 23, 2020, January 28, 2021 and February 20, 2021, respectively. The Genco Ocean, the Baltic Cove and the Baltic Fox, all 2010-built Handysize vessels, were delivered to the buyers on December 29, 2020, January 30, 2021 and February 2, 2021, respectively. The Genco Spirit, the Genco Avra and the Genco Mare, all 2011-built Handysize vessels, were delivered to the buyers on February 15, 2021, February 21, 2021 and February 24, 2021, respectively. As of December 31, 2020, the vessel assets for the Baltic Cove, the Baltic Fox, the Genco Avra, the Genco Mare and the Genco Spirit have been classified as held for exchange in the Consolidated Balance Sheet.

Vessel Dispositions

On July 16, 2021, the Company entered into an agreement to sell the Genco Provence, a 2004-built Supramax vessel, to a third party for $13,250 less a 2.5% commission payable to a third party. The sale was completed on November 2, 2021.

On January 25, 2021, the Company entered into an agreement to sell the Baltic Leopard, a 2009-built Supramax vessel, to a third party for $8,000 less a 2.0% commission payable to a third party. The sale was completed on April 8, 2021.

On January 22, 2021, the Company entered into an agreement to sell the Genco Lorraine, a 2009-built Supramax vessel, to a third party for $7,950 less a 2.5% commission payable to a third party. The sale was completed on July 6, 2021.

During November 2020, the Company entered into agreements to sell the Baltic Cougar, the Baltic Hare and the Baltic Panther. These vessels have been classified as held for sale in the Consolidated Balance Sheet as of December 31, 2020. The sale of the Baltic Hare, the Baltic Panther and the Baltic Cougar were completed on January 15, 2021, January 4, 2021 and February 24, 2021, respectively.

During the fourth quarter of 2020, the Company completed the sale of the Genco Bay, the Baltic Jaguar, the Genco Loire and the Genco Normandy on October 1, 2020, October 16, 2020, November 18, 2020 and December 8, 2020, respectively. During the third quarter of 2020, the Company completed the sale of the Baltic Wind and the Baltic Breeze on July 7, 2020 and July 31, 2020, respectively. During the first quarter of 2020, the Company completed the sale of the Genco Charger and the Genco Thunder on February 24, 2020 and March 5, 2020, respectively.

As of December 31, 2021, the Company recorded $5,643 of current restricted cash in the Consolidated Balance Sheets which represents the net proceeds received from the sale of the Genco Provence which serves as collateral under the $450 Million Credit Facility. As of December 31, 2020, the Company recorded $35,492 of current restricted cash in the Consolidated Balance Sheets which represents the net proceeds received from the sale of eight vessels that served as collateral under the $495 Million Credit Facility. The $495 Million Credit Facility was refinanced with the $450 Million Credit Facility on August 31, 2021. Refer to Note 7 — Debt. Pursuant to both the $450 Million Credit Facility and the $495 Million Credit Facility, the net proceeds for each vessel remain classified as restricted cash for 360 days following the respective sale dates. These amounts can be used towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility. If such a replacement vessel is not added as collateral within such 360 day period, the Company is required to use the proceeds as a loan prepayment.

During the fourth quarter of 2019, the Company completed the sale of the Genco Challenger, the Genco Champion and the Genco Raptor on October 10, 2019, October 21, 2019 and December 10, 2019.

On November 23, 2018, the Company entered into an agreement to sell the Genco Vigour, a 1999-built Panamax vessel, to a third party for $6,550 less a 2.0% broker commission payable to a third party.  The sale was completed on January 28, 2019. 

Refer to the “Impairment of vessel assets” and the “(Gain) loss on sale of vessels” sections in Note 2 — Summary of Significant Accounting Policies for discussion of impairment expense and the (gain) loss on sale of vessels recorded during the years ended December 31, 2021, 2020 and 2019.

v3.22.0.1
NET EARNINGS (LOSS) PER SHARE
12 Months Ended
Dec. 31, 2021
NET EARNINGS (LOSS) PER SHARE  
NET EARNINGS (LOSS) PER SHARE

5 – NET EARNINGS (LOSS) PER SHARE

The computation of basic net earnings (loss) per share is based on the weighted-average number of common shares outstanding during the reporting period. The computation of diluted net earnings (loss) per share assumes the vesting of nonvested stock awards and the exercise of stock options (refer to Note 17 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive. There were 214,191 restricted stock units and 313,684 stock options that were dilutive during the year ended December 31, 2021. There were 298,834 and 162,096 shares of restricted stock units excluded from the computation of diluted net loss per share during the years ended December 31, 2020 and 2019, respectively, because they were anti-dilutive. There were 837,338 and 496,148 stock options excluded from the computation of diluted net loss per share during the years ended December 31, 2020 and 2019, respectively, because they were anti-dilutive. (refer to Note 17 — Stock-Based Compensation).

The Company’s diluted net earnings (loss) per share will also reflect the assumed conversion of the equity warrants issued when the Company emerged from bankruptcy on July 9, 2014 (the “Effective Date”) and MIP Warrants issued by the Company (refer to Note 17 — Stock-Based Compensation) if the impact is dilutive under the treasury stock method. The equity warrants had a seven-year term that commenced on the day following the Effective Date and were exercisable for one tenth of a share of the Company’s common stock. All MIP Warrants during the years ended December 31, 2020 and 2019 were excluded from the computation of diluted net loss per share because they were anti-dilutive. The MIP Warrants expired on August 7, 2020. There were 3,936,761 equity warrants excluded from the computation of diluted net earnings (loss) per share during the years ended December 31, 2021, 2020 and 2019 because they were anti-dilutive. These equity warrants expired at 5:00 p.m. on July 9, 2021 without exercise.

The components of the denominator for the calculation of basic and diluted net earnings (loss) per share are as follows:

For the Years Ended December 31,

 

2021

    

2020

  

2019

 

Common shares outstanding, basic:

Weighted-average common shares outstanding, basic

42,060,996

 

41,907,597

41,762,893

Common shares outstanding, diluted:

Weighted-average common shares outstanding, basic

42,060,996

 

41,907,597

41,762,893

Dilutive effect of warrants

 

Dilutive effect of stock options

313,684

Dilutive effect of restricted stock units

214,191

 

Weighted-average common shares outstanding, diluted

42,588,871

 

41,907,597

41,762,893

v3.22.0.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2021
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

6 - RELATED PARTY TRANSACTIONS

During the years ended December 31, 2021, 2020 and 2019, the Company did not have any related party transactions.

v3.22.0.1
DEBT
12 Months Ended
Dec. 31, 2021
DEBT  
DEBT

7 - DEBT

Long-term debt consists of the following:

December 31, 

December 31, 

    

2021

    

2020

 

Principal amount

 

$

246,000

 

$

449,228

Less: Unamortized debt financing costs

 

(7,771)

 

(9,653)

Less: Current portion

 

 

(80,642)

Long-term debt, net

 

$

238,229

 

$

358,933

December 31, 2021

December 31, 2020

Unamortized

Unamortized

Debt Issuance

Debt Issuance

    

Principal

    

Cost

    

Principal

    

Cost

 

$450 Million Credit Facility

$

246,000

$

7,771

$

$

$495 Million Credit Facility

334,288

8,222

$133 Million Credit Facility

114,940

1,431

Total debt

$

246,000

 

$

7,771

$

449,228

 

$

9,653

As of December 31, 2021 and 2020, $7,771 and $9,653 of deferred financing costs, respectively, were presented as a direct deduction within the outstanding debt balance in the Company’s Consolidated Balance Sheets. Amortization expense for deferred financing costs for the years ended December 31, 2021, 2020 and 2019 was $3,536, $3,903 and

$3,788, respectively. This amortization expense is recorded as a component of Interest expense in the Consolidated Statements of Operations.

Effective August 31, 2021, the portion of the unamortized deferred financing costs for the $495 Million Credit Facility and the $133 Million Credit Facility that was identified as a debt modification, rather than an extinguishment of debt, is being amortized over the life of the $450 Million Credit Facility in accordance with ASC 470-50.

On November 5, 2019, the Company entered into amendments with its lenders to the dividend covenants of the credit agreements for the $495 Million Credit Facility and the $133 Million Credit Facility.  Under the terms of these two facilities as so amended, dividends or repurchases of our stock were subject to customary conditions.  The Company could pay dividends or repurchase stock under these facilities to the extent its total cash and cash equivalents were greater than $100,000 and 18.75% of our total indebtedness, whichever is higher; if the Company could satisfy this condition, the Company was subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment or stock repurchase if the collateral maintenance test ratio is 200% or less for such quarter, for which purpose the full commitment of up to $35,000 of the scrubber tranche under the $495 Million Credit Facility is assumed to be drawn. On August 31, 2021, the $495 Million Credit Facility and the $133 Million Credit Facility were refinanced with the $450 Million Credit Facility as noted below.

$450 Million Credit Facility

On August 3, 2021, the Company entered into the $450 Million Credit Facility, a five-year senior secured credit facility which is allocated between an up to $150,000 term loan facility and an up to $300,000 revolving credit facility which was used to refinance the Company’s $495 Million Credit Facility and its $133 Million Credit Facility. On August 31, 2021, proceeds of $350,000 under the $450 Million Credit Facility were used, together with cash on hand, to refinance all of the Company’s existing credit facilities (the $495 Million Credit Facility and the $133 Million Credit Facility, as described below) into one facility. $150,000 was drawn down under the term loan facility and $200,000 was drawn down under the revolving credit facility.

The key terms associated with the $450 Million Credit Facility are as follows:

The final maturity date is August 3, 2026.

Borrowings are subject to a limit of the ratio of the principal amount of debt outstanding to the collateral (“LTV”) of 55%.

There is a non-committed accordion term loan facility whereby additional borrowings of up to $150,000 may be incurred if additional eligible collateral is provided; such additional borrowings are subject to a LTV ratio of 60% for collateral vessels less than five years old or 55% for collateral vessels at least five years old but not older than seven years.

Borrowings bear interest at LIBOR plus a margin of 2.15% to 2.75% based on the Company’s quarterly total net leverage ratio (the ratio of total indebtedness to consolidated EBITDA), which may be increased or decreased by a margin of up to 0.05% based on the Company’s performance regarding emissions targets. Upon cessation of the LIBOR rate, borrowings will bear interest at a rate based on the Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York plus a spread adjustment, plus the applicable margin referred to above.

Scheduled quarterly commitment reductions are $11,720 per quarter followed by a balloon payment of $215,600.

Collateral includes thirty-nine of our current vessels, leaving five vessels, including the vessels delivered during January 2022, unencumbered.

Commitment fees are 40% of the applicable margin for unutilized commitments.

The Company can sell or dispose of collateral vessels without loan prepayment if a replacement vessel or vessels meeting certain requirements are included as collateral within 360 days.

The Company is subject to customary financial covenants, including a collateral maintenance covenant requiring the aggregate appraised value of collateral vessels to be at least 140% of the principal amount of loans outstanding, a minimum liquidity covenant requiring our unrestricted cash and cash equivalents to be the greater of $500 per vessel or 5% of total indebtedness, a minimum working capital covenant requiring consolidated current assets (excluding restricted cash) minus current liabilities (excluding the current portion of debt) to be not less than zero, and a debt to capitalization covenant requiring the ratio of total net indebtedness to total capitalization to be not more than 70%.

The Company may declare and pay dividends and other distributions so long as, at the time of declaration, (1) no event of default has occurred and is continuing or would occur as a result of the declaration and (2) the Company is in pro forma compliance with its financial covenants after giving effect to the dividend. Other restrictions in the dividend covenants of the Company’s prior credit facilities were eliminated.

As of December 31, 2021, there was $184,810 of availability under the $450 Million Credit Facility. Total debt repayments of $104,000 were made during the year ended December 31, 2021 under the $450 Million Credit Facility. As of December 31, 2021, the total outstanding net debt balance was $238,229.

As of December 31, 2021, the Company was in compliance with all of the financial covenants under the $450 Million Credit Facility.

 

The following table sets forth the scheduled repayment of the outstanding principal debt of $246,000 as of December 31, 2021 under the $450 Million Credit Facility:

Year Ending December 31, 

    

Total

2025

$

2,710

2026

243,290

Total debt

$

246,000

$133 Million Credit Facility

On August 14, 2018, the Company entered into a five-year senior secured credit facility (the “$108 Million Credit Facility”) with Crédit Agricole Corporate & Investment Bank (“CACIB”), as Structurer and Bookrunner, CACIB and Skandinaviska Enskilda Banken AB (Publ) as Mandate Lead Arrangers, CACIB as Administrative Agent and as Security Agent, and the other lenders party thereto from time to time. The Company used proceeds from the $108 Million Credit Facility to finance a portion of the purchase price for the six vessels, including four Capesize Vessels and two Ultramax vessels, which were delivered to the Company during the three months ended September 30, 2018. These six vessels also serve as collateral under the $108 Million Credit Facility. The Company drew down a total of $108,000 during the third quarter of 2018, which represented 45% of the appraised value of the six vessels.

On June 11, 2020, the Company entered into an amendment and restatement agreement to the $108 Million Credit Facility which provided for a revolving credit facility of up to $25,000 (the “Revolver”) for general corporate and working capital purposes (as so amended, the $133 Million Credit Facility”). On June 15, 2020, the Company drew down $24,000 under the Revolver.

The $133 Million Credit Facility provided for the following key terms in relation to the $108,000 tranche:

The final maturity date was August 14, 2023.

Borrowings bore interest at London Interbank Offered Rate (“LIBOR”) plus 2.50% through September 30, 2019 and LIBOR plus a range of 2.25% to 2.75% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months EBITDA.

Scheduled amortization payments reflected a repayment profile whereby the facility shall have been repaid to nil when the average vessel aged of the collateral vessels reaches 20 years. Based on this, the required repayments were $1,580 per quarter commencing on December 31, 2018, with a final balloon payment on the maturity date.

Mandatory prepayments were to be applied to remaining amortization payments pro rata, while voluntary prepayments were to be applied to remaining amortization payments in order of maturity.

The $133 Million Credit Facility provided for the following key terms in relation to the $25,000 Revolver tranche:

The final maturity date of the Revolver was August 14, 2023.

Borrowings under the Revolver could be incurred pursuant to multiple drawings on or prior to July 1, 2023 in minimum amounts of $1,000.

Borrowings under the Revolver bore interest at LIBOR plus 3.00%.

The Revolver was subject to consecutive quarterly commitment reductions commencing on the last day of the fiscal quarter ending September 30, 2020 in an amount equal to approximately $1.9 million each quarter.

Borrowings under the Revolver were subject to a limit of 60% for the ratio of outstanding total term and revolver loans to the aggregate appraised value of collateral vessels under the $133 Million Credit Facility.

The $133 Million Credit Facility provided for the following key terms:

Pursuant to the November 5, 2019 amendment, the Company could pay dividends or repurchase stock to the extent the Company’s total cash and cash equivalents were greater than $100,000 and 18.75% of its total indebtedness, whichever was higher; if the Company could not satisfy this condition, the Company was subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment or stock repurchase if the collateral maintenance test ratio was 200% or less for such quarter.

Acquisitions and additional indebtedness were allowed subject to compliance with financial covenants (including a collateral maintenance test) and other customary conditions.

Key financial covenants were substantially similar to those under the Company’s $495 Million Credit Facility and include:

minimum liquidity, with unrestricted cash and cash equivalents to equal or exceed the greater of $30,000 and 7.5% of total indebtedness;

minimum working capital, with consolidated current assets (excluding restricted cash) minus consolidated current liabilities (excluding the current portion of long-term indebtedness) to be not less than zero;

debt to capitalization, with the ratio of total indebtedness to total capitalization to be not more than 70%; and

collateral maintenance, with the aggregate appraised value of collateral vessels to be at least 135% of the principal amount of the loan outstanding under the $133 Million Credit Facility.

Total debt repayments of $114,940, $9,160 and $6,320 were made during the years ended December 31, 2021, 2020 and 2019, respectively, under the $133 Million Credit Facility.

On August 31, 2021, the $133 Million Credit Facility was refinanced with the $450 Million Credit Facility; refer to the “$450 Million Credit Facility” section above. As of December 31, 2021 and 2020, the total outstanding net debt balance was $0 and $113,509, respectively.

$495 Million Credit Facility

On May 31, 2018, the Company entered into a five-year senior secured credit facility for an aggregate amount of up to $460,000 with Nordea Bank AB (publ), New York Branch (“Nordea”), as Administrative Agent and Security Agency, the various lenders party thereto, and Nordea, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Capital USA LLC, DVB Bank SE, Crédit Agricole Corporate & Investment Bank, and Danish Ship Finance A/S as Bookrunners and Mandated Lead Arrangers. Deutsche Bank AG Filiale Deutschlandgeschäft, and CTBC Bank Co. Ltd. are Co-Arrangers under this facility. On June 5, 2018, proceeds of $460,000 under this facility were used, together with cash on hand, to refinance all of the Company’s prior credit facilities (the $400 Million Credit Facility, $98 Million Credit Facility and 2014 Term Loan Facilities) into one facility, and pay down the debt on seven of the Company’s oldest vessels, which were been identified for sale.

On February 28, 2019, the Company entered into an Amendment and Restatement Agreement (the “Amendment”) for this credit facility (the “$495 Million Credit Facility”) with Nordea Bank AB (publ), New York Branch  (“Nordea”), as Administrative Agent and Security Agent, the various lenders party thereto, and Nordea, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Capital USA LLC, DVB Bank SE, Crédit Agricole Corporate & Investment Bank, and Danish Ship Finance A/S  as Bookrunners and Mandated Lead Arrangers.  The Amendment provided for an additional tranche up to $35,000 to finance a portion of the acquisitions, installations, and related costs for scrubbers for 17 of the Company’s Capesize vessels.  On August 28, 2019, September 23, 2019 and March 12, 2020, the Company made total drawdowns of $9,300, $12,200 and $11,250, respectively, under the $35 Million tranche of the $495 Million Credit Facility.

During the year ended December 31, 2021, the Company utilized $18,182 of the proceeds from the sale of the Genco Charger, the Genco Thunder, the Baltic Wind and the Baltic Breeze which was classified as restricted cash as of December 31, 2020 as a loan prepayment under the $495 Million Credit Facility. During the year ended December 31, 2020, the Company utilized $6,045 of the proceeds from the sale of the Genco Raptor which was classified as restricted cash as of December 31, 2019 as a loan prepayment under the $495 Million Credit Facility. During the year ended December 31, 2019, the Company utilized $6,880 of the proceeds from the sale of the Genco Challenger and the Genco Champion which were sold during the fourth quarter of 2019 as a loan prepayment under the $495 Million Credit Facility. Additionally, during the year ended December 31, 2019, the Company utilized $4,947 of the proceeds from the sale of the Genco Cavalier that was classified as restricted cash as of December 31, 2018 as a loan prepayment under the $495 Million Credit Facility.  Under the terms of the $495 Million Credit Facility, the amount received from the proceeds of the sale of a collateralized vessel could be used towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility.  However, since a replacement vessel was not added as collateral within the period stipulated in the $495 Million Credit Facility which was revised as noted below, the Company was required to utilize the proceeds as a loan prepayment. 

On December 17, 2020, the Company entered into an amendment to the $495 Million Credit Facility that allowed the Company to enter into a vessel transaction in which the Company agreed to acquire three Ultramax vessels in exchange for six of the Company’s Handysize vessels. Refer to Note 4 — Vessel Acquisitions and Dispositions.

The $495 Million Credit Facility provided for the following key terms in relation to the $460,000 tranche:

The final maturity date was May 31, 2023.

Borrowings bore interest at LIBOR plus 3.25% through December 31, 2018 and LIBOR plus a range of 3.00% and 3.50% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months EBITDA. Original scheduled amortization payments were $15,000 per quarter commencing on December 31, 2018, with a final payment of $190,000 due on the maturity date. As a result of the loan prepayments for the vessel sales as noted above, scheduled amortization payments were recalculated in accordance with the terms of the facility. Scheduled amortization payments were revised to $12,400 which commenced on June 30, 2021, with a final payment of $189,605 due on the maturity date.

Scheduled amortization payments could be recalculated upon the Company’s request based on changes in collateral vessels, prepayments of the loan made as a result of a collateral vessel disposition as part of the Company’s fleet renewal program, or voluntary prepayments, subject in each case to a minimum repayment profile under which the loan would be repaid to nil when the average age of the vessels serving as collateral from time to time reaches 17 years.  Mandatory prepayments were applied to remaining amortization payments pro rata, while voluntary prepayments were applied to remaining amortization payments in order of maturity.

Acquisitions and additional indebtedness were allowed subject to compliance with financial covenants, a collateral maintenance test, and other customary conditions.

The $495 Million Credit Facility provided for the following key terms in relation to the $35,000 tranche:

The final maturity date was May 31, 2023.

Borrowings under the tranche could be incurred pursuant to multiple drawings on or prior to March 30, 2020 in minimum amounts of $5,000 and could be used to finance up to 90% of the scrubber costs noted above.

Borrowings under the tranche bore interest at LIBOR plus 2.50% through September 30, 2019 and LIBOR plus a range of 2.25% to 2.75% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months’ EBITDA.

The tranche was subject to equal consecutive quarterly repayments commencing on the last day of the fiscal quarter ending March 31, 2020 in an amount reflecting a repayment profile whereby the loans shall have been repaid after four years calculated from March 31, 2020. Assuming that the full $35,000 is borrowed, each quarterly repayment amount was originally scheduled to be equal to $2,500.  However, as a result of the loan prepayments for the vessel sales as noted above, the availability under the $35,000 tranche was reduced to $34,025.  The Company drew down $32,750 and, as a result of the loan prepayments for the vessel sales as noted above, scheduled quarterly amortization repayments were revised to $2,339 which commenced on March 31, 2020, with a final payment of $1,904 due on the maturity date. On June 7, 2021, the Company repaid the remaining outstanding balance under the $35,000 tranche of $20,013. 

The $495 Million Credit Facility provided for the following key terms:

Pursuant to the November 5, 2019 amendment, the Company could pay dividends or repurchase stock to the extent the Company’s total cash and cash equivalents were greater than $100,000 and 18.75% of the Company’s total indebtedness, whichever was higher; if the Company could not satisfy this condition, the Company was subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment if the collateral maintenance test ratio was 200% or less for such quarter, with the full commitment of up to $35,000 of the scrubber tranche assumed to be drawn.

Collateral vessels could be sold or disposed of without prepayment of the loan if a replacement vessel or vessels meeting certain requirements were included as collateral within 120 days of such sale or disposition.  On February 13, 2019 and June 5, 2020, the Company entered into amendments with its lenders to extend this period to 180 days and 360 days, respectively. In addition:

the Company had to be in compliance with the collateral maintenance test;

the replacement vessels had to become collateral for the loan; and either

the replacement vessels had to have an equal or greater appraised value than the collateral vessels for which they were substituted, or

the ratio of the aggregate appraised value of the collateral vessels (including replacement vessels) to the outstanding loan amount after the collateral disposition (accounting for any prepayments of the loan by the time the replacement vessels become collateral vessels) had to be equal or exceed the aggregate appraised value of the collateral vessels to the outstanding loan before the collateral disposition.

Key financial covenants included:

minimum liquidity, with unrestricted cash and cash equivalents to equal or exceed the greater of $30,000 and 7.5% of total indebtedness (no restricted cash is required);

minimum working capital, with consolidated current assets (excluding restricted cash) minus consolidated current liabilities (excluding the current portion of long-term indebtedness) to be not less than zero;

debt to capitalization, with the ratio of total indebtedness to total capitalization to be not more than 70%; and

collateral maintenance, with the aggregate appraised value of collateral vessels to be at least 135% of the principal amount of the loan outstanding under the $495 Million Credit Facility.

Collateral included the current vessels in the Company’s fleet other than the seven oldest vessels in the fleet which that had been identified for sale, collateral vessel earnings and insurance, and time charters in excess of 24 months in respect of the collateral vessels.

Total debt repayments of $334,288, $72,686 and $70,776 were made during the years ended December 31, 2021, 2020 and 2019, respectively, under the $495 Million Credit Facility.

On August 31, 2021, the $495 Million Credit Facility was refinanced with the $450 Million Credit Facility; refer to the “$450 Million Credit Facility” section above. As of December 31, 2021 and 2020, the total outstanding net debt balance was $0 and $326,066, respectively.

Interest rates

The following tables set forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including the costs associated with unused commitment fees, if applicable. The following tables also include the range of interest rates on the debt, excluding the impact of unused commitment fees, if applicable:

For the Years Ended December 31,

2021

2020

2019

Effective Interest Rate

3.22

%  

3.71

%  

5.31

%  

Range of Interest Rates (excluding unused commitment fees)

2.24 % to 3.48

%  

2.65 % to 3.50

%  

4.05 % to 5.76

%  

Letter of credit

In conjunction with the Company entering into a long-term office space lease (See Note 14 — Leases), the Company was required to provide a letter of credit to the landlord in lieu of a security deposit. As of September 21, 2005, the Company obtained an annually renewable unsecured letter of credit with DnB NOR Bank at a fee of 1% per annum. During September 2015, the Company replaced the unsecured letter of credit with DnB NOR Bank with an unsecured letter of credit with Nordea Bank Finland Plc, New York and Cayman Island Branches (“Nordea”) in the same amount at a fee of 1.375% per annum. The letter of credit outstanding was $300 as of December 31, 2021 and 2020 at a fee of 1.375% per annum. The letter of credit is cancelable on each renewal date provided the landlord is given 30 days' minimum notice. As of December 31, 2021 and 2020, the letter of credit outstanding has been securitized by $315 that was paid by the Company to Nordea during the year ended December 31, 2015. These amounts have been recorded as restricted cash included in total noncurrent assets in the Consolidated Balance Sheets as of December 31, 2021 and 2020.

v3.22.0.1
DERIVATIVE INSTRUMENTS
12 Months Ended
Dec. 31, 2021
DERIVATIVE INSTRUMENTS  
DERIVATIVE INSTRUMENTS

8 – DERIVATIVE INSTRUMENTS

The Company is exposed to interest rate risk on its floating rate debt. As of December 31, 2021, the Company had three interest rate cap agreements outstanding to manage interest costs and the risk associated with variable interest rates. The three interest rate cap agreements have been designated and qualify as cash flow hedges. The premium paid is recognized in income on a rational basis, and all changes in the value of the caps are deferred in Accumulated other comprehensive income (“AOCI”) and are subsequently reclassified into Interest expense in the period when the hedged interest affects earnings.

The following table summarizes the interest rate cap agreements in place as of December 31, 2021.

Interest Rate Cap Detail

Notional Amount Outstanding

December 31, 

Trade date

Cap Rate

Start Date

End Date

    

2021

March 25, 2021

0.75

%

April 29, 2021

March 28, 2024

$

50,000

July 29, 2020

0.75

%

July 31, 2020

December 29, 2023

100,000

March 6, 2020

1.50

%

March 10, 2020

March 10, 2023

50,000

$

200,000

The Company records the fair value of the interest rate caps as Fair value of derivatives in the non-current asset section on its Consolidated Balance Sheets. The Company has elected to use the income approach to value the interest rate derivatives using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) reflecting current market expectations about those future amounts. Level 2 inputs for derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates, implied volatility, basis swap adjustments, and credit risk at commonly quoted intervals). Mid-market pricing is used as a practical expedient for most fair value measurements.

The Company recorded a $825 gain for the year ended December 31, 2021 in AOCI. The estimated income that is currently recorded in AOCI as of December 31, 2021 that is expected to be reclassified into earnings within the next twelve months is $32.

The Effect of Fair Value and Cash Flow Hedge Accounting on the Statement of Operations

For the Year Ended December 31, 

2021

    

2020

2019

Interest Expense

Interest Expense

Interest Expense

Total amounts of income and expense line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded

$

15,357

$

22,413

$

31,955

The effects of fair value and cash flow hedging

Gain or (loss) on cash flow hedging relationships in Subtopic 815-20:

Interest contracts:

Amount of gain or (loss) reclassified from AOCI to income

$

$

$

Premium excluded and recognized on an amortized basis

197

Amount of gain or (loss) reclassified from AOCI to income as a result that a forecasted transaction is no longer probable of occurring

The following table shows the interest rate cap assets as of December 31, 2021:

December 31, 

Derivatives designated as hedging instruments

Balance Sheet Location

2021

Interest rate caps

Fair value of derivative instruments - noncurrent

$

1,166

The components of AOCI included in the accompanying Consolidated Balance Sheet consists of net unrealized gains on cash flow hedges as of December 31, 2021.

AOCI — January 1, 2021

$

Amount recognized in OCI on derivative, intrinsic

 

745

Amount recognized in OCI on derivative, excluded

 

80

Amount reclassified from OCI into income

 

AOCI — December 31, 2021

$

825

v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2021
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

9 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair values and carrying values of the Company’s financial instruments as of December 31, 2021 and 2020 which are required to be disclosed at fair value, but not recorded at fair value, are noted below.

December 31, 2021

December 31, 2020

    

Carrying

    

    

Carrying

    

 

    

Value

    

Fair Value

    

Value

    

Fair Value

 

Cash and cash equivalents

$

114,573

$

114,573

$

143,872

$

143,872

Restricted cash

 

5,958

 

5,958

 

35,807

 

35,807

Principal amount of floating rate debt

 

246,000

 

246,000

 

449,228

 

449,228

The carrying value of the borrowings under the $450 Million Credit Facility as of December 31, 2021 and the $495 Million Credit Facility and the $133 Million Credit Facility as of December 31, 2020, which excludes the impact of deferred financing costs, approximate their fair value due to the variable interest nature thereof as each of these credit facilities represent floating rate loans. Refer to Note 7 — Debt for further information regarding the Company’s credit facilities. The carrying amounts of the Company’s other financial instruments as of December 31, 2021 and 2020 (principally Due from charterers and Accounts payable and accrued expenses) approximate fair values because of the relatively short maturity of these instruments.

ASC Subtopic 820-10, “Fair Value Measurements & Disclosures” (“ASC 820-10”), applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the consolidated financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 requires significant management judgment. The three levels are defined as follows:

Level 1—Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment.

Level 2—Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Cash and cash equivalents and restricted cash are considered Level 1 items, as they represent liquid assets with short-term maturities. Floating rate debt is considered to be a Level 2 item, as the Company considers the estimate of rates it could obtain for similar debt or based upon transactions amongst third parties. Interest rate cap agreements are considered to be a Level 2 item. Refer to Note 8 — Derivative Instruments for further information. Nonrecurring fair value measurements include vessel impairment assessments completed during the interim period and at year-end as determined based on third party quotes, which are based off of various data points, including comparable sales of similar vessels, which are Level 2 inputs. There was no vessel impairment recorded during the year ended December 31, 2021. During the years ended December 31, 2020 and 2019, the vessels assets for 30 and five of the Company’s vessels, respectively, were written down as part of the impairment recorded during those periods. The vessels held for sale and vessels held for exchange as of December 31, 2020 were written down as part of the impairment recorded during the

year ended December 31, 2020. Refer to “Impairment of long-lived assets” section in Note 2 — Summary of Significant Accounting Policies.  

The fair value determination for the operating lease right-of-use asset was based on third party quotes, which is considered a Level 2 input.  Nonrecurring fair value measurements may include impairment tests of the Company’s operating lease right-of use asset if there are indicators of impairment.  During the years ended December 31, 2021 and 2020, there were no indicators of impairment of the operating lease right-of-use assets. During the year ended December 31, 2019, the operating lease right-of-use asset was written down as part of the impairment of right-of-use asset recorded during the year ended December 31, 2019.  Refer to Note 14 — Leases. 

The Company did not have any Level 3 financial assets or liabilities as of December 31, 2021 and 2020.

v3.22.0.1
PREPAID EXPENSES AND OTHER CURRENT ASSETS
12 Months Ended
Dec. 31, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS  
PREPAID EXPENSES AND OTHER CURRENT ASSETS

10 - PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

    

December 31, 

    

December 31, 

    

2021

    

2020

 

Vessel stores

$

297

$

501

Capitalized contract costs

1,983

1,669

Prepaid items

 

3,109

 

2,998

Insurance receivable

 

2,349

 

1,917

Advance to agents

827

1,466

Other

 

1,370

 

2,305

Total prepaid expenses and other current assets

$

9,935

$

10,856

v3.22.0.1
FIXED ASSETS
12 Months Ended
Dec. 31, 2021
FIXED ASSETS  
FIXED ASSETS

11 - FIXED ASSETS

Fixed assets consist of the following:

    

December 31, 

    

December 31, 

    

2021

    

2020

 

Fixed assets, at cost:

Vessel equipment

$

8,353

$

6,188

Furniture and fixtures

 

810

 

443

Leasehold improvements

1,386

1,369

Computer equipment

 

672

 

659

Total costs

 

11,221

 

8,659

Less: accumulated depreciation and amortization

 

(3,984)

 

(2,266)

Total fixed assets, net

$

7,237

$

6,393

v3.22.0.1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
12 Months Ended
Dec. 31, 2021
ACCOUNTS PAYABLE AND ACCRUED EXPENSES.  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES

12 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following:

    

December 31, 

    

December 31, 

    

2021

    

2020

 

Accounts payable

$

9,399

$

11,864

Accrued general and administrative expenses

 

4,719

 

3,258

Accrued vessel operating expenses

 

15,838

 

7,671

Total accounts payable and accrued expenses

$

29,956

$

22,793

v3.22.0.1
VOYAGE REVENUES
12 Months Ended
Dec. 31, 2021
VOYAGE REVENUES  
VOYAGE REVENUES

13 – VOYAGE REVENUES

Total voyage revenues include revenue earned on fixed rate time charters, spot market voyage charters and spot market-related time charters, as well as the sale of bunkers consumed during short-term time charters. For the years ended December 31, 2021, 2020 and 2019, the Company earned $547,129, $355,560 and $389,496 of voyage revenue, respectively.

Revenue for spot market voyage charters is recognized ratably over the total transit time of the voyage which now begins when the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port in accordance with ASC 606.  Spot market voyage charter agreements do not provide the charterers with substantive decision-making rights to direct how and for what purpose the vessel is used, therefore revenue from spot market voyage charters is not within the scope of ASC 842. Additionally, the Company has identified that the contract fulfillment costs of spot market voyage charters consist primarily of the fuel consumption that is incurred by the Company from the latter of the end of the previous vessel employment and the contract date until the arrival at the loading port, in addition to any port expenses incurred prior to arrival at the load port, as well as any charter hire expenses for third party vessels that are chartered in. The fuel consumption and any port expenses incurred prior to arrival at the load port during this period is capitalized and recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets and is amortized ratably over the total transit time of the voyage from arrival at the loading port until the vessel departs from the discharge port and expensed as part of Voyage Expenses. Similarly, for any third party vessels that are chartered in, the charter hire expenses during this period are capitalized and recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets and are amortized and expensed as part of Charter hire expenses. Refer also to Note 10 — Prepaid Expenses and Other Current Assets.

During time charter agreements, including fixed rate time charters and spot market-related time charters, the charterers have substantive decision-making rights to direct how and for what purpose the vessel is used.  As such, the Company has identified that time charter agreements contain a lease in accordance with ASC 842.  During time charter agreements, the Company is responsible for operating and maintaining the vessels.  These costs are recorded as vessel operating expenses in the Consolidated Statements of Operations.  The Company has elected the practical expedient that allows the Company to combine lease and non-lease components under ASC 842 as the Company believes (1) the timing and pattern of recognizing revenues for operating the vessel is the same as the timing and pattern of recognizing vessel leasing revenue; and (2) the lease component, if accounted for separately, would be classified as an operating lease. 

Total voyage revenue recognized in the Consolidated Statements of Operations includes the following:

 

For the Years Ended

December 31, 

    

2021

2020

2019

Lease revenue

$

160,242

$

78,402

$

108,096

Spot market voyage revenue

386,887

277,158

281,400

Total voyage revenues

$

547,129

$

355,560

$

389,496

v3.22.0.1
LEASES
12 Months Ended
Dec. 31, 2021
LEASES  
LEASES

14 – LEASES

Effective April 4, 2011, the Company entered into a seven-year sub-sublease agreement for its main office in New York, New York. The term of the sub-sublease commenced June 1, 2011 and ended on May 1, 2018. The Company entered into a direct lease with the over-landlord of such office space that commenced immediately upon the expiration of such sub-sublease agreement, for a term covering the period from May 1, 2018 to September 30, 2025. For accounting purposes, the sub-sublease agreement and direct lease agreement with the landlord constitute one lease agreement.

In addition, during October 2017, the Company entered into a lease for office space in Singapore that expired in January 2019. A lease was signed for a new office space in Singapore effective January 17, 2019 for a three-year term, which has been extended effective January 17, 2022 for a two-year term.

Lastly, during July 2018, the Company entered into a lease for office space in Copenhagen, which commenced on July 1, 2018 and ended on April 30, 2019. A lease was signed for a new office space in Copenhagen effective May 1, 2019 for a minimum period ending May 1, 2023.

The Company adopted ASC 842 using the transition method on January 1, 2019 (refer to Note 2 — Summary of Significant Accounting Policies) and has identified the aforementioned leases as operating leases. Variable rent expense, such as utilities and escalation expenses, are excluded from the determination of the operating lease liability and the Company has deemed these insignificant. The Company used its incremental borrowing rate as the discount rate under ASC 842 since the rate implicit in the lease cannot be readily determined.

On June 14, 2019, the Company entered into a sublease agreement for a portion of the leased space for its main office in New York, New York that commenced on July 26, 2019 and will end on September 29, 2025. There was a free base rental period for the first four and a half months commencing on July 26, 2019. Following the expiration of the free base rental period, the monthly base sublease income will be $102 per month until September 29, 2025. The sublease income for the portion of the leased space is less than the lease payments due for the space, which has been identified as an indicator of impairment under ASC 360. As such, the right-of-use asset for the subleased portion of the space was written down to its fair value during the second quarter of 2019 which resulted in $223 of impairment charges which has been recorded in Impairment of right-of-asset in the Consolidated Statement of Operations during the year ended December 31, 2019. Sublease income is recorded net with the total operating lease costs in General and administrative expenses in the Consolidated Statements of Operations. There was $1,223, $1,223 and $72 of sublease income recorded during the years ended December 31, 2021, 2020 and 2019, respectively.

There was $1,852, $1,912 and $1,884 of operating lease costs recorded during the years ended December 31, 2021, 2020 and 2019, respectively, which was recorded in General and administrative expenses in the Consolidated Statements of Operations.

Supplemental Consolidated Balance Sheet information related to the Company’s operating leases as of December 31, 2021 is as follows:

December 31, 

 

2021

 

Operating Lease:

Operating lease right-of-use asset

$

5,495

Current operating lease liabilities

$

1,858

Long-term operating lease liabilities

 

6,203

Total operating lease liabilities

$

8,061

Weighted average remaining lease term (years)

3.75

Weighted average discount rate

5.15

%

Maturities of operating lease liabilities as of December 31, 2021 are as follows:

December 31, 

 

2021

 

2022

$

2,230

2023

2,378

2024

2,453

2025

1,839

Total lease payments

8,900

Less imputed interest

(839)

Present value of lease liabilities

$

8,061

Consolidated Cash Flow information related to leases are as follows:

For the Year Ended

December 31, 

2021

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

2,230

$

2,230

The Company charters in third-party vessels and the Company is the lessee in these agreements under ASC 842.  The Company has elected the practical expedient under ASC 842 to not recognize right-of-use assets and lease liabilities for short-term leases.  During the years ended December 31, 2021, 2020 and 2019, all charter-in agreements for third-party vessels were less than twelve months and considered short-term leases.  Refer to Note 2  Summary of Significant Accounting Policies for the charter hire expenses recorded during the years ended December 31, 2021, 2020 and 2019 for these charter-in agreements.

v3.22.0.1
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2021
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

15 - COMMITMENTS AND CONTINGENCIES

During the second half of 2018, the Company entered into agreements for the purchase of ballast water treatments systems (“BWTS”) for 36 of its vessels.  The cost of these systems will vary based on the size and specifications of each vessel and whether the systems will be installed in China during the vessels’ scheduled drydockings.  Based on the contractual purchase price of the BWTS and the estimated installation fees, the Company estimates the cost of the systems to be approximately $0.9 million for Capesize vessels and $0.6 million for Supramax vessels. These costs are capitalized and depreciated over the remainder of the life of the vessel.  Prior to any adjustments for vessel impairment and vessel sales, the Company recorded cumulatively $18,992 and $17,009 in Vessel assets in the Consolidated Balance Sheets as of December 31, 2021 and 2020, respectively, related to BWTS additions.  Excluding any installation fees, the Company expects to pay $3,787 during the year ending December 31, 2022 for BWTS.

On December 21, 2018, the Company entered into agreements to install scrubbers on its 17 Capesize vessels. The Company completed scrubber installation on 16 of its Capesize vessels during the year ended December 31, 2019 and the remaining Capesize vessel on January 17, 2020. The cost of each scrubber varied according to the specifications of the Company’s vessels and technical aspects of the installation, among other variables. These costs are being capitalized and depreciated over the remainder of the life of the vessel. The Company recorded cumulatively $42,927 and $42,728 in Vessel assets in the Consolidated Balance Sheets as of December 31, 2021 and 2020, respectively, related to scrubber additions.

v3.22.0.1
SAVINGS PLAN
12 Months Ended
Dec. 31, 2021
SAVINGS PLAN  
SAVINGS PLAN

16 - SAVINGS PLAN

In August 2005, the Company established a 401(k) plan that is available to U.S. based full-time employees who meet the plan’s eligibility requirements. This 401(k) plan is a defined contribution plan, which permits employees to make contributions up to maximum percentage and dollar limits allowable by IRS Code Sections 401(k), 402(g), 404

and 415 with the Company matching $1.33 for each dollar contributed up to the first six percent of each employee’s salary. The matching contribution vests immediately. For the years ended December 31, 2021, 2020 and 2019, the Company’s matching contributions to this plan were $440, $473 and $399, respectively.

v3.22.0.1
STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2021
STOCK-BASED COMPENSATION  
STOCK-BASED COMPENSATION

17 - STOCK-BASED COMPENSATION

2014 Management Incentive Plan

In 2014, the Company adopted the Genco Shipping & Trading Limited 2014 Management Incentive Plan (the “MIP”). An aggregate of 966,806 shares of Common Stock were available for award under the MIP. Awards under the MIP took the form of restricted stock grants and three tiers of MIP Warrants with staggered strike prices based on increasing equity values. On August 7, 2014, pursuant to the MIP, certain individuals were granted MIP Warrants whereby each warrant could be converted on a cashless basis for the amount in excess of the respective strike price. The MIP Warrants were issued in three tranches for 238,066, 246,701, and 370,979 and had exercise prices, as adjusted for dividends declared during the fourth quarter of 2019 and the first quarter of 2020, of $240.89221 (the “$240.89 Warrants”), $267.11051 (the “$267.11 Warrants”) and $317.87359 (the “$317.87 Warrants”) per whole share, respectively. The fair value of each warrant upon emergence from bankruptcy was $7.22 for the $240.89 Warrants, $6.63 for the $267.11 Warrants and $5.63 for the $317.87 Warrants. The aggregate fair value of these awards upon issuance was $54,436.

All warrants were fully vested and the related expense was fully amortized as of January 1, 2018. The warrants expired on August 7, 2020.

2015 Equity Incentive Plan

On June 26, 2015, the Company’s Board of Directors approved the 2015 Equity Incentive Plan for awards with respect to an aggregate of 400,000 shares of common stock (the “2015 Plan”). Under the 2015 Plan, the Company’s Board of Directors, the compensation committee, or another designated committee of the Board of Directors may grant a variety of stock-based incentive awards to the Company’s officers, directors, employees, and consultants. Awards may consist of stock options, stock appreciation rights, dividend equivalent rights, restricted (nonvested) stock, restricted stock units, and unrestricted stock.

On March 23, 2017, the Board of Directors approved an amendment and restatement of the 2015 Plan.  This amendment and restatement increased the number of shares available for awards under the plan from 400,000 to 2,750,000, subject to shareholder approval; set the annual limit for awards to non-employee directors and other individuals as 500,000 and 1,000,000 shares, respectively; and modified the change in control definition.  The Company’s shareholders approved the increase in the number of shares at the Company’s 2017 Annual Meeting of Shareholders on May 17, 2017.

On March 19, 2021, the Board of Directors approved an amendment and restatement of the 2015 Equity Incentive Plan (the “Amended 2015 Plan”). This amendment and restatement increased the number of shares available for awards under the plan from 2,750,000 to 4,750,000, subject to shareholder approval. The Company’s shareholders approved the increase in the number of shares at the Company’s 2021 Annual Meeting of Shareholders on May 13, 2021.

As of December 31, 2021, the Company has awarded restricted stock units, restricted stock and stock options under the Amended 2015 Plan.

Stock Options

 

On March 4, 2019, the Company issued options to purchase 240,540 of the Company’s shares of common stock to certain individuals with an exercise price of $8.065 per share, as adjusted for the special dividend declared on November 5, 2019. One third of the options become exercisable on each of the first three anniversaries of March 4, 2019, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant

using the Black-Scholes-Merton pricing formula, resulting in a value of $3.76 per share, or $904 in the aggregate. The assumptions used in the Black-Scholes-Merton option pricing formula are as follows: volatility of 55.23% (representing the Company’s historical volatility), a risk-free interest rate of 2.49%, a dividend yield of 0%, and expected life of 4.00 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data).

On February 25, 2020, the Company issued options to purchase 344,568 of the Company’s shares of common stock to certain individuals with an exercise price of $7.06 per share. One third of the options become exercisable on each of the first three anniversaries of February 25, 2020, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Cox-Ross-Rubinstein pricing formula, resulting in a value of $2.01 per share, or $693 in the aggregate. The assumptions used in the Cox-Ross-Rubinstein option pricing formula are as follows: volatility of 53.91% (representing the Company’s historical volatility), a risk-free interest rate of 1.41%, a dividend yield of 7.13%, and expected life of 4 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data).

On February 23, 2021, the Company issued options to purchase 118,552 of the Company’s shares of common stock to certain individuals with an exercise price of $9.91 per share. One third of the options become exercisable on each of the first three anniversaries of February 23, 2021, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Cox-Ross-Rubinstein pricing formula, resulting in a value of $4.33 per share, or $513 in the aggregate. The assumptions used in the Cox-Ross-Rubinstein option pricing formula are as follows: volatility of 60.91% (representing the Company’s historical volatility), a risk-free interest rate of 0.41%, a dividend yield of 0.98%, and expected life of 4 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data).

For the years ended December 31, 2021, 2020 and 2019, the Company recognized amortization expense of the fair value of these options, which is included in General and administrative expenses, as follows:

For the Years Ended December 31,

 

2021

2020

2019

General and administrative expenses

$

635

$

787

$

850

Amortization of the unamortized stock-based compensation balance of $367 as of December 31, 2021 is expected to be $278, $81 and $8 during the years ended December 31, 2022, 2023 and 2024, respectively.  The following table summarizes the stock option activity for the years ended December 31, 2021, 2020 and 2019:

For the Years Ended December 31,

2021

2020

2019

Weighted

Weighted

Weighted

Weighted

Weighted

Weighted

Number

Average

Average

Number

Average

Average

Number

Average

Average

of

Exercise

Fair

of

Exercise

Fair

of

Exercise

Fair

    

Options

    

Price

    

Value

    

Options

    

Price

    

Value

    

Options

    

Price

    

Value

Outstanding as of January 1

 

837,338

 

$

8.86

$

4.02

496,148

 

$

10.11

$

5.41

255,608

 

$

12.36

6.96

Granted

 

118,552

9.91

4.33

344,568

7.06

2.01

240,540

8.33

3.76

Exercised

 

(39,603)

8.37

3.46

Forfeited

 

(3,378)

8.07

3.76

Outstanding as of December 31

 

916,287

 

$

9.02

$

4.08

837,338

 

$

8.86

$

4.02

496,148

 

$

10.11

$

5.41

Exercisable as of December 31

 

488,969

 

$

9.88

$

5.04

293,792

 

$

10.78

$

6.01

173,869

 

11.41

$

6.68

The following table summarizes certain information about the options outstanding as of December 31, 2021:

Options Outstanding and Unvested,

Options Outstanding and Exercisable,

December 31, 2021

December 31, 2021

Weighted

Weighted

 

Weighted

Average

 

Weighted

Average

Weighted

Average

Exercise Price of

 

Average

Remaining

Average

Remaining

Outstanding

Number of

Exercise

Contractual

Number of

Exercise

Contractual

Options

    

Options

    

Price

    

Life

    

Options

    

Price

    

Life

 

$

9.02

 

427,318

$

8.04

4.25

488,969

$

9.88

2.59

As of December 31, 2021 and 2020, a total of 916,287 and 837,338 stock options were outstanding, respectively.

Restricted Stock Units

The Company has issued restricted stock units (“RSUs”) to certain members of the Board of Directors and certain executives and employees of the Company, which represent the right to receive a share of common stock, or in the sole discretion of the Company’s Compensation Committee, the value of a share of common stock on the date that the RSU vests. As of December 31, 2021 and 2020, 478,848 and 373,588 shares of the Company’s common stock were outstanding in respect of the RSUs, respectively. Such shares will only be issued in respect of vested RSUs issued to directors when the director’s service with the Company as a director terminates. Such shares of common stock will only be issued to executives and employees when their RSUs vest under the terms of their grant agreements and the Amended 2015 Plan described above.

The RSUs that have been issued to certain members of the Board of Directors generally vest on the date of the annual shareholders meeting of the Company following the date of the grant. In lieu of cash dividends issued for vested and nonvested shares held by certain members of the Board of Directors, the Company will grant additional vested and nonvested RSUs, respectively, which are calculated by dividing the amount of the dividend by the closing price per share of the Company’s common stock on the dividend payment date and will have the same terms as other RSUs issued to members of the Board of Directors. The RSUs that have been issued to other individuals vest ratably on each of the three anniversaries of the determined vesting date. The table below summarizes the Company’s unvested RSUs for the years ended December 31, 2021, 2020 and 2019:

For the Years Ended December 31,

2021

2020

2019

Weighted

Weighted

Weighted

Number of

Average Grant

Number of

Average Grant

Number of

Average Grant

    

RSUs

Date Price

RSUs

Date Price

RSUs

    

Date Price

 

Outstanding as of January 1

298,834

$

7.49

162,096

$

9.26

149,170

$

12.42

Granted

159,492

11.93

221,903

6.80

140,914

8.50

Vested

(151,439)

7.79

(83,675)

9.07

(127,988)

12.10

Forfeited

(1,490)

8.39

Outstanding as of December 31

306,887

$

9.65

298,834

$

7.49

162,096

$

9.26

The total fair value of the RSUs that vested during the years ended December 31, 2021, 2020 and 2019 was $1,838, $550 and $1,235, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date.

The following table summarizes certain information of the RSUs unvested and vested as of December 31, 2021:

Unvested RSUs

Vested RSUs

December 31, 2021

December 31, 2021

Weighted

Weighted

Average

Weighted

Average

Remaining

Average

Number of

Grant Date

Contractual

Number of

Grant Date

RSUs

    

Price

    

Life

    

RSUs

    

Price

 

306,887

$

9.65

1.36

657,337

$

10.32

The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of December 31, 2021, unrecognized compensation cost of $1,059 related to RSUs will be recognized over a weighted-average period of 1.36 years.

For the years ended December 31, 2021, 2020 and 2019, the Company recognized nonvested stock amortization expense for the RSUs, which is included in General and administrative expenses as follows:

For the Years Ended December 31,

 

2021

2020

2019

General and administrative expenses

$

1,632

$

1,239

$

1,207

v3.22.0.1
LEGAL PROCEEDINGS
12 Months Ended
Dec. 31, 2021
LEGAL PROCEEDINGS  
LEGAL PROCEEDINGS

18 - LEGAL PROCEEDINGS

From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. The Company is not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material effect on the Company, its financial condition, results of operations or cash flows.

v3.22.0.1
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2021
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

19 - SUBSEQUENT EVENTS

On February 23, 2022, the Company announced a regular quarterly dividend of $0.67 per share to be paid on or about March 17, 2022, to shareholders of record as of March 10, 2022.  The aggregate amount of the dividend is expected to be approximately $28.4 million, which the Company anticipates will be funded from cash on hand at the time the payment is to be made.

On February 23, 2022, the Company’s Board of Directors awarded grants of 201,934 RSUs to certain individuals under the 2015 Plan.  The awards generally vest ratably in one-third increments on the first three anniversaries of February 23, 2022.

On January 26, 2022, the Company made a debt prepayment of $8,750 on the $450 Million Credit Facility.

On January 6, 2022 the Company took delivery of the Genco Mary and the Genco Laddey, both 2022-built newbuilding Ultramax vessels. Refer also to Note 4 — Vessel Acquisitions and Dispositions.

v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Principles of consolidation

Principles of consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries and GSSM. All intercompany accounts and transactions have been eliminated in consolidation.

Business geographics

Business geographics

The Company’s vessels regularly move between countries in international waters, over hundreds of trade routes and, as a result, the disclosure of geographic information is impracticable.

Vessel acquisitions

Vessel acquisitions

When the Company enters into an acquisition transaction, it determines whether the acquisition transaction was the purchase of an asset or a business based on the facts and circumstances of the transaction. As is customary in the shipping industry, the purchase of a vessel is normally treated as a purchase of an asset as the historical operating data for the vessel is not reviewed nor is it material to the Company’s decision to make such acquisition.

When a vessel is acquired with an existing time charter, the Company allocates the purchase price to the vessel and the time charter based on, among other things, vessel market valuations and the present value (using an interest rate which reflects the risks associated with the acquired charters) of the difference between (i) the contractual amounts to be paid pursuant to the charter terms and (ii) management’s estimate of the fair market charter rate, measured over a period equal to the remaining term of the charter. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction or increase, respectively, to voyage revenues over the remaining term of the charter.

Segment reporting

Segment reporting

The Company reports financial information and evaluates its operations by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters. Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.

Revenue recognition

Revenue recognition

Since the Company’s inception, revenues have been generated from time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters. Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

Time charters

A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement. Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”).

The Company records time charter revenues, including spot market-related time charters, over the term of the charter as service is provided. Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement for which the performance obligations are satisfied beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period. As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market. Time charter contracts, including spot market-related time charters, are considered operating leases and therefore do not fall under the scope of Accounting Standards Codification (“ASC”) 606 Revenue from Contracts with Customers (“ASC 606”) because (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives economic benefit from such use.

The Company has identified that time charter agreements, including fixed rate time charters and spot market-related time charters, contain a lease in accordance with ASC 842 (as defined under “Recent accounting pronouncements” below). Refer to Note 13 — Voyage Revenues for further discussion.

 

Spot market voyage charters

In a spot market voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage, which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or “dead” freight. The contract generally has a “demurrage” or “despatch” clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage or despatch paid by the Company for the years ended December 31, 2021, 2020 and 2019 is not material.

Revenue for spot market voyage charters is recognized ratably over the total transit time of each voyage, which commences at the time the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port.

Voyage expense recognition

Voyage expense recognition

In time charters and spot market-related time charters, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. Refer to Note 13 — Voyage Revenues for further discussion of the accounting for fuel expenses for spot market voyage charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net (gain) loss of ($1,889), $697 and $829 during the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.

Loss on debt extinguishment

Loss on debt extinguishment

 

During the year ended December 31, 2021, the Company recorded $4,408 related to the loss on the extinguishment of debt in accordance with ASC 470-50 — “Debt – Modifications and Extinguishments” (“ASC 470-50”). This loss was recognized as a result of the refinancing of the $495 Million Credit Facility and the $133 Million Credit Facility with the $450 Million Credit Facility on August 31, 2021 as described in Note 7 — Debt.

Due from charterers, net

Due from charterers, net

Due from charterers, net includes accounts receivable from charters, including receivables for spot market voyages, net of the provision for doubtful accounts. At each balance sheet date, the Company records the provision based on a review of all outstanding charter receivables. Included in the standard time charter contracts with the Company’s customers are certain performance parameters which, if not met, can result in customer claims. As of December 31, 2021 and 2020, the Company had a reserve of $1,403 and $669, respectively, against the due from charterers balance and an additional accrual of $364 and $358, respectively, in deferred revenue, each of which is primarily associated with estimated customer claims against the Company including vessel performance issues under time charter agreements.

Revenue is based on contracted charterparties. However, there is always the possibility of dispute over terms and payment of hires and freights. In particular, disagreements may arise concerning the responsibility of lost time and

revenue. Accordingly, the Company periodically assesses the recoverability of amounts outstanding and estimates a provision if there is a possibility of non-recoverability. The Company believes its provisions to be reasonable based on information available.

Inventories

Inventories

Inventories consist of consumable bunkers and lubricants that are stated at the lower of cost and net realizable value. Cost is determined by the first in, first out method.

Vessel operating expenses

Vessel operating expenses

Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, and other miscellaneous expenses. Vessel operating expenses are recognized when incurred.

Charter hire expenses

Charter hire expenses

 

The costs to charter-in third party vessels, which primarily include the daily charter hire rate net of commissions, are recorded as Charter hire expenses. The Company recorded $36,370, $10,307 and $16,179 of charter hire expenses during the years ended December 31, 2021, 2020 and 2019, respectively.

Technical management fees

Technical management fees

Technical management fees represent fees paid to third party technical management companies for the day-to-day management of our vessels, including performing routine maintenance, attending to vessel operation and arranging for crews and supplies. In addition, technical management fees also include the direct costs, including operating costs, incurred by GSSM for the technical management of the vessels under its management.

Vessels, net

Vessels, net

Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the years ended December 31, 2021, 2020 and 2019 was $49,417, $58,008 and $66,351, respectively.

Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the estimated scrap value of $310 per lightweight ton (“lwt”) times the weight of the vessel noted in lwt. Effective January 1, 2022, the Company increased the estimated scrap value of the vessels from $310 per lwt to $400 per lwt prospectively based on the average of the 15-year average scrap value of steel. The change in the estimated scrap value will result in a decrease in depreciation expense over the remaining life of the vessel assets. The Company expects depreciation to decrease by approximately $4.5 million during 2022 as a result of the prospective change in the scrap value.

Vessels held for sale

Vessels held for sale

The Company’s Board of Directors has approved a strategy of divesting specifically identified older, less fuel-efficient vessels as part of a fleet renewal program to streamline and modernize the Company’s fleet.

On November 3, 2020, November 27, 2020 and November 30, 2020, the Company entered into agreements to sell the Baltic Panther, the Baltic Hare and the Baltic Cougar, respectively. The relevant vessel assets have been classified as held for sale in the Consolidated Balance Sheet as of December 31, 2020. The Baltic Panther, the Baltic Hare and the Baltic Cougar were sold on January 4, 2021, January 15, 2021 and February 24, 2021, respectively.

Vessels held for exchange

Vessels held for exchange

The remaining five vessel assets to be exchanged as part of an agreement entered into by the Company on December 17, 2020 have been classified as vessels held for exchange in the Consolidated Balance Sheet as of December 31, 2020 in the amount of $38,214, after recognition of impairment. This includes the vessel assets for the Baltic Cove, the Baltic Fox, the Genco Avra, the Genco Mare and the Genco Spirit. These vessels were exchanged during the first quarter of 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement.

Contract liability

Contract liability

The Company has recorded a contract liability of $7,200 as of December 31, 2020 which is related to the timing of the exchange of vessels pursuant to the agreement entered into by the Company on December 17, 2020 to exchange six of the Company’s Handysize vessels for three Ultramax vessels owned by the counterparty. As of December 31, 2020, the Company completed the exchange of one of its Handysize vessels, the Genco Ocean, for one Ultramax vessel, the Genco Magic. The $7,200 contract liability represents the excess of fair value of the vessels received as of December 31, 2020 over the fair value of the vessel contributed to the counterparty. The exchange of the remainder of the vessels under the agreement were completed during the first quarter of 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement.

Fixed assets, net

Fixed assets, net

Fixed assets, net is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are based on a straight line basis over the estimated useful life of the specific asset placed in service. The following table is used in determining the typical estimated useful lives:

Description

    

Useful lives

Leasehold improvements

 

Lesser of the estimated useful life of the asset or life of the lease

Furniture, fixtures & other equipment

 

5 years

Vessel equipment

 

2-15 years

Computer equipment

 

3 years

Depreciation and amortization expense for fixed assets for the years ended December 31, 2021, 2020 and 2019 was $1,759, $1,562 and $989, respectively.

Deferred drydocking costs

Deferred drydocking costs

The Company’s vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating. The Company defers the costs associated with the drydockings as they occur and amortizes these costs on a straight-line basis over the period between drydockings. Costs deferred as part of a vessel’s drydocking include actual costs incurred at the drydocking yard; cost of travel, lodging and subsistence of personnel sent to the drydocking site to supervise; and the cost of hiring a third party to oversee the drydocking. If the vessel is drydocked earlier than originally anticipated, any remaining deferred drydock costs that have not been amortized are expensed at the end of the next drydock.

Amortization expense for drydocking for the years ended December 31, 2021, 2020 and 2019 was $5,055, $5,598 and $5,484, respectively, and is included in Depreciation and amortization expense in the Consolidated

Statements of Operations. All other costs incurred during drydocking are expensed as incurred, with the exception of other capitalized costs incurred related to vessel assets and vessel equipment.

Impairment of long-lived assets

Impairment of long-lived assets

During the year ended December 31, 2021, the Company did not incur any impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). During the years ended December 31, 2020 and 2019, the Company recorded $208,935 and $27,393, respectively, related to the impairment of vessel assets in accordance with ASC 360. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets.

When the Company performs its analysis of the anticipated undiscounted future net cash flows, the Company utilizes various assumptions based on historical trends. Specifically, the Company utilizes the rates currently in effect for the duration of their current time charters or spot market voyage charters, without assuming additional profit sharing.  For periods of time during which the Company’s vessels are not fixed on time charters or spot market voyage charters, the Company utilizes an estimated daily time charter equivalent for the vessels’ unfixed days based on the most recent ten year historical one-year time charter average.  In addition, the Company considers the current market rate environment and, if necessary, will adjust its estimates of future undiscounted cash flows to reflect the current rate environment. The projected undiscounted future net cash flows are determined by considering the future voyage revenues from existing time charters for the fixed fleet days and an estimated daily time charter equivalent for the unfixed days over the estimated remaining life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, reduced by brokerage and address commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking and special survey expenditures) and required capital expenditures adjusted annually for inflation, assuming fleet utilization of 98%. The salvage value used in the impairment test is estimated to be $310 per light weight ton, consistent with the Company’s depreciation policy during 2021.

On January 22, 2021, the Company entered into an agreement to sell the Genco Lorraine, a 2009-built Supramax vessel, to a third party for $7,950 less a 2.5% commission payable to a third party. Additionally, on January 25, 2021, the Company entered into an agreement to sell the Baltic Leopard, a 2009-built Supramax vessel, to a third party for $8,000 less a 2.0% commission payable to a third party. As the undiscounted cash flows, including the net sales price, did not exceed the net book value of the Genco Lorraine and the Baltic Leopard as of December 31, 2020, the vessels values for the Genco Lorraine and the Baltic Leopard were adjusted to their net sales prices of $7,751 and $7,840 as of December 31, 2020, respectively. This resulted in an impairment loss of $404 and $399 for the Genco Lorraine and the Baltic Leopard, respectively, during the year ended December 31, 2020.

As of December 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for nine of its Supramax vessels, the Genco Aquitaine, the Genco Ardennes, the Genco Auvergne, the Genco Bourgogne, the Genco Brittany, the Genco Hunter, the Genco Languedoc, the Genco Pyrenees and the Genco Rhone, did not exceed the net book value of these vessels. The Company adjusted the carrying value of these vessels to their respective fair market values as of December 31, 2020 which resulted in an impairment loss of $67,200 during the year ended December 31, 2020.

On December 17, 2020, the Company entered into an agreement to acquire three Ultramax vessels in exchange for six of our Handysize vessels. The six Handysize vessels include the Genco Ocean, the Baltic Cove and the Baltic Fox, all 2010-built Handysize vessels, and the Genco Avra, the Genco Mare and the Genco Spirit, all 2011-built Handysize vessels. The values for these six Handysize vessels were adjusted to their total fair market value of $46,000 as of the date of the agreement less a 1.0% commission payable to a third party which resulted in an impairment loss of $4,647 during the year ended December 31, 2020.

On November 30, 2020, the Company entered into an agreement to sell the Genco Cougar, a 2009-built Supramax vessel, to a third party for $7,600 less a 3.0% commission payable to a third party. Therefore, the vessel value

for the Baltic Cougar was adjusted to its net sales price of $7,372 as of December 31, 2020. This resulted in an impairment loss of $790 during the year ended December 31, 2020.

On November 27, 2020, the Company entered into an agreement to sell the Baltic Hare, a 2009-built Handysize vessel, to a third party for $7,750 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Baltic Hare was adjusted to its net sales price of $7,595 as of December 31, 2020. This resulted in an impairment loss of $769 during the year ended December 31, 2020.

On November 3, 2020, the Company entered into an agreement to sell the Baltic Panther, a 2009-built Supramax vessel, to a third party for $7,510 less a 3.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Baltic Panther was adjusted to its net sales price of $7,285 as of September 30, 2020. This resulted in an impairment loss of $3,713 during the year ended December 31, 2020.

On October 16, 2020, the Company entered into an agreement to sell the Genco Loire, a 2009-built Supramax vessel, to a third party for $7,650 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Genco Loire was adjusted to its net sales price of $7,497 as of September 30, 2020. This resulted in an impairment loss of $3,408 during the year ended December 31, 2020.

On September 30, 2020, the Company determined that the expected estimated future undiscounted cash flows for three of its Supramax vessels, the Genco Lorraine, the Baltic Cougar and the Baltic Leopard, did not exceed the net book value of these vessels as of September 30, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of September 30, 2020. This resulted in an impairment loss of $7,963 during the year ended December 31, 2020.

On September 25, 2020, the Company entered into an agreement to sell the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% commission payable to a third party. Therefore, the vessel value for the Baltic Jaguar was adjusted to its net sales price of $7,081 as of September 30, 2020. This resulted in an impairment loss of $4,140 during the year ended December 31, 2020.

On September 17, 2020, the Company entered in an agreement to sell the Genco Normandy, a 2007-built Supramax vessel, to a third party for $5,850 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Genco Normandy was adjusted to its net sales price of $5,733 as of September 30, 2020. This resulted in an impairment loss of $2,679 during the year ended December 31, 2020.

At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of its Supramax vessels, the Genco Picardy, the Genco Predator, the Genco Provence and the Genco Warrior, did not exceed the net book value of these vessels as of March 31, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of March 31, 2020. This resulted in an impairment loss of $27,055 during the year ended December 31, 2020.

On February 24, 2020, the Board of Directors determined to dispose of the Company’s following ten Handysize vessels: the Baltic Hare, the Baltic Fox, the Baltic Wind, the Baltic Cove, the Baltic Breeze, the Genco Ocean, the Genco Bay, the Genco Avra, the Genco Mare and the Genco Spirit, at times and on terms to be determined in the future.  Given this decision, and that the revised estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel given the estimated probabilities of whether the vessels will be sold, the Company adjusted the values of these older vessels to their respective fair market values during the three months ended March 31, 2020. Subsequent to February 24, 2020, the Company has entered into agreements to sell three of these vessels during the three months ended March 31, 2020, namely the Baltic Wind, the Baltic Breeze and the Genco Bay, which were adjusted to their net sales price. This resulted in an impairment loss of $85,768 during the year ended December 31, 2020.

On February 3, 2020, the Company entered into an agreement to sell the Genco Charger, a 2005-built Handysize vessel, to a third party for $5,150 less a 1.0% commission payable to a third party.   As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of December 31, 2019, the vessel value for the Genco Charger was adjusted to its net sales price of $5,099 as of December 31, 2019. This resulted in an impairment loss of $1,314 during the year ended December 31, 2019.

On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, to a third party for $10,200 less a 2.0% commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2019, the vessel value for the Genco Raptor was adjusted to its net sales price of $9,996 as of September 30, 2019. This resulted in an impairment loss of $5,812 during the year ended December 31, 2019.

On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, a 2007-built Panamax vessel, for $10,400 less a 2.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Thunder was adjusted to its net sales price of $10,192 as of September 30, 2019.  This resulted in an impairment loss of $5,749 during the year ended December 31, 2019. 

 On September 20, 2019, the Company entered into an agreement to sell the Genco Champion, a 2006-built Handysize vessel, for $6,600 less a 3.0% broker commission payable to a third party.  Therefore, the vessel value for the Genco Champion was adjusted to its net sales price of $6,402 as of September 30, 2019.  This resulted in an impairment loss of $621 during the year ended December 31, 2019. 

On August 2, 2019, the Company entered into an agreement to sell the Genco Challenger, a 2003-built Handysize vessel, for $5,250 less a 2.0% broker commission payable to a third party.  As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2019, the vessel value for the Genco Challenger was adjusted to its net sales price of $5,145 as of June 30, 2019.  This resulted in an impairment loss of $4,401 during the year ended December 31, 2019.  

 

At June 30, 2019, the Company determined that the expected estimated future undiscounted cash flows for the Genco Champion, a 2006-built Handysize vessel, and the Genco Charger, a 2005-built Handysize vessel, did not exceed the net book value of these vessels as of June 30, 2019.  As such, the Company adjusted the value of these vessels to their respective fair market values as of June 30, 2019.  This resulted in an impairment loss of $9,496 during the year ended December 31, 2019. 

Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of certain aforementioned vessels. 

(Gain) loss on sale of vessels

(Gain) loss on sale of vessels

During the years ended December 31, 2021, 2020 and 2019, the Company recorded net (gains) losses of ($4,924), $1,855 and $168, respectively, related to the sale of vessels. The ($4,924) net gains recognized during the year ended December 31, 2021 related primarily to the sale of the Genco Provence, partially offset by losses related to the sale of the Baltic Panther, the Baltic Hare, the Baltic Cougar, the Baltic Leopard and the Genco Lorraine, as well as net losses associated with the exchange of the Baltic Cove, Baltic Fox, Genco Spirit, Genco Avra and Genco Mare. The $1,855 net losses recognized during the year ended December 31, 2020 related primarily to the sale of the Genco Charger, the Genco Thunder, the Baltic Wind, the Baltic Breeze, the Genco Bay, the Baltic Jaguar, the Genco Loire, the Genco Normandy and the Genco Ocean. The $168 net losses recognized during the year ended December 31, 2019 related primarily to the sale of the Genco Challenger, the Genco Champion and the Genco Raptor which was largely offset by a net gain related to the sale of the Genco Vigour. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.

Deferred financing costs

Deferred financing costs

Deferred financing costs, which are presented as a direct deduction within the outstanding debt balance in the Company’s Consolidated Balance Sheets, consist of fees, commissions and legal expenses associated with securing loan facilities and other debt offerings and amending existing loan facilities. These costs are amortized over the life of the related debt and are included in Interest expense in the Consolidated Statements of Operations.

Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash

The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:

December 31, 

December 31, 

    

2021

    

2020

 

Cash and cash equivalents

 

$

114,573

 

$

143,872

Restricted cash - current

5,643

35,492

Restricted cash - noncurrent

 

315

 

315

Cash, cash equivalents and restricted cash

 

$

120,531

 

$

179,679

United States Gross Transportation Tax

United States Gross Transportation Tax

Pursuant to Section 883 of the U.S. Internal Revenue Code of 1986 (as amended) (the “Code”), qualified income derived from the international operations of ships is excluded from gross income and exempt from U.S. federal income tax if a company engaged in the international operation of ships meets certain requirements (the “Section 883 exemption”). Among other things, in order to qualify, the Company must be incorporated in a country that grants an equivalent exemption to U.S. corporations and must satisfy certain qualified ownership requirements.

The Company is incorporated in the Marshall Islands. Pursuant to the income tax laws of the Marshall Islands, the Company is not subject to Marshall Islands income tax. The Marshall Islands has been officially recognized by the Internal Revenue Service as a qualified foreign country that currently grants the requisite equivalent exemption from tax. The Company is not taxable in any other jurisdiction, with the exception of Genco Management (USA) Limited, Genco Shipping Pte. Ltd., Genco Shipping A/S, as noted in the “Income taxes” section below.

The Company will qualify for the Section 883 exemption if, among other things, (i) the Company’s stock is treated as primarily and regularly traded on an established securities market in the United States (the “publicly traded test”) or (ii) the Company satisfies the qualified shareholder test or (iii) the Company satisfies the controlled foreign corporation test (the “CFC test”). Under applicable Treasury Regulations, the publicly traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of the Company’s stock (which the Company sometimes refers to as “5% shareholders”), together own 50% or more of the Company’s stock (by vote and value) for more than half the days in such year (which the Company sometimes refers to as the “five percent override rule”), unless an exception applies. A foreign corporation satisfies the qualified shareholder test if more than 50 percent of the value of its outstanding shares is owned (or treated as owned by applying certain attribution rules) for at least half of the number of days in the foreign corporation's taxable year by one or more “qualified shareholders.” A qualified shareholder includes a foreign corporation that, among other things, satisfies the publicly traded test. A foreign corporation satisfies the CFC test if it is a “controlled foreign corporation” and one or more qualified U.S. persons own more than 50 percent of the total value of all the outstanding stock.

Based on the publicly traded requirement of the Section 883 regulations, the Company believes that it qualified for exemption from income tax on income derived from the international operations of vessels during the years ended December 31, 2021, 2020 and 2019. In order to meet the publicly traded requirement, the Company’s stock must be treated as being primarily and regularly traded for more than half the days of any such year. Under the Section 883 regulations, the Company’s qualification for the publicly traded requirement may be jeopardized if 5% shareholders own, in the aggregate, 50% or more of the Company’s common stock for more than half the days of the year. Management believes that during the years ended December 31, 2021, 2020 and 2019, the combined ownership of its 5% shareholders did not equal 50% or more of its common stock for more than half the days of each of those years.

If the Company does not qualify for the Section 883 exemption, the Company’s U.S. source shipping income, i.e., 50% of its gross shipping income attributable to transportation beginning or ending in the U.S. (but not both beginning and ending in the U.S.) is subject to a 4% tax without allowance for deductions (the “U.S. gross transportation tax”).

During the years ended December 31, 2021, 2020 and 2019, the Company qualified for Section 883 exemption and, therefore, did not record any U.S. gross transportation tax.

Income taxes

Income taxes

To the extent the Company’s U.S. source shipping income, or other U.S. source income, is considered to be effectively connected income, as described below, any such income, net of applicable deductions, would be subject to the U.S. federal corporate income tax, imposed at a 21% rate. In addition, the Company may be subject to a 30% "branch profits" tax on such income, and on certain interest paid or deemed paid attributable to the conduct of such trade or business. Shipping income is generally sourced 100% to the United States if attributable to transportation exclusively between United States ports (the Company is prohibited from conducting such voyages), 50% to the United States if attributable to transportation that begins or ends, but does not both begin and end, in the United States (as described in “United States Gross Transportation Tax” above) and otherwise 0% to the United States.

The Company’s U.S. source shipping income would be considered effectively connected income only if:

the Company has, or is considered to have, a fixed place of business in the U.S. involved in the earning of U.S. source shipping income; and

substantially all of the Company’s U.S. source shipping income is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the U.S.

The Company does not intend to have, or permit circumstances that would result in having, any vessel sailing to or from the U.S. on a regularly scheduled basis. Based on the current shipping operations of the Company and the Company’s expected future shipping operations and other activities, the Company believes that none of its U.S. source shipping income will constitute effectively connected income. However, the Company may from time to time generate non-shipping income that may be treated as effectively connected income.

The Company established Genco Shipping Pte. Ltd. (“GSPL”), which is based in Singapore, on September 8, 2017. GSPL applied for and was awarded the Maritime Sector Incentive – Approved International Shipping Enterprise (“MSI-AIS”) status under Section 13F of the Singapore Income Tax Act (“SITA”) by the Maritime and Port Authority of Singapore. The award is for an initial period of 10 years, commencing on August 15, 2018, and is subject to a review of performance at the end of the initial five year period.  The MSI-ASI status provides for a tax exemption on income derived by GSPL from qualifying shipping operations under Section 13F of the SITA. Income from non-qualifying activities is taxable at the prevailing Singapore Corporate income tax rate (currently 17%). During the years ended December 31, 2021, 2020 and 2019, there was no income tax recorded by GSPL.

During 2018, the Company established Genco Shipping A/S, which is a Danish-incorporated corporation which is based in Copenhagen and considered to be a resident for tax purposes in Denmark. Genco Shipping A/S was subject

to corporate taxes in Denmark a rate of 22% during 2021, 2020 and 2019. During the years ended December 31, 2021, 2020 and 2019, Genco Shipping A/S recorded $2, $407 and $241, respectively, of income tax in Other income (expense) in the Consolidated Statements of Operations.

Deferred revenue

Deferred revenue

Deferred revenue primarily relates to cash received from charterers prior to it being earned. These amounts are recognized as income when earned. Additionally, deferred revenue includes estimated customer claims mainly due to time charter performance issues. Refer to “Revenue recognition” above for description of the Company’s revenue recognition policy.

Nonvested stock awards

Nonvested stock awards

The Company follows ASC Subtopic 718-10, “Compensation — Stock Compensation” (“ASC 718-10”), for nonvested stock issued under its equity incentive plans. Stock-based compensation costs from nonvested stock have been classified as a component of additional paid-in capital in the Consolidated Statements of Equity.

Dividends declared

Dividends declared

If the Company has an accumulated deficit, dividends declared will be recognized as a reduction of additional paid-in capital (“APIC”) in the Consolidated Statements of Equity until the APIC is reduced to zero. Once APIC is reduced to zero, dividends declared will be recognized as an increase in accumulated deficit.

Accounting estimates

Accounting estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels and the fair value of derivative instruments, if any. Actual results could differ from those estimates.

Concentration of credit risk

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk are amounts due from charterers and cash and cash equivalents. With respect to amounts due from charterers, the Company attempts to limit its credit risk by performing ongoing credit evaluations and, when deemed necessary, requires letters of credit, guarantees or collateral. The Company earned all of its voyage revenues from 139, 166 and 170 customers during the years ended December 31, 2021, 2020 and 2019.

For the years ended December 31, 2021, 2020 and 2019, there were no customers that individually accounted for more than 10% of voyage revenues.

As of December 31, 2021 and 2020, the Company maintains all of its cash and cash equivalents with four and five financial institutions, respectively. None of the Company’s cash and cash equivalents balance is covered by insurance in the event of default by these financial institutions.

Fair value of financial instruments

Fair value of financial instruments

The estimated fair values of the Company’s financial instruments, such as amounts due to / due from charterers, accounts payable and long-term debt, approximate their individual carrying amounts as of December 31, 2021 and 2020 due to their short-term maturity or the variable-rate nature of the respective borrowings under the credit facilities. See Note 9 — Fair Value of Financial Instruments for additional disclosure on the fair value of long-term debt.

Recent accounting pronouncements

Recent accounting pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”)” which provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848) – Scope (“ASU 2021-01”),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modification made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its Consolidated Financial Statements and related disclosures.

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”),” which changes the disclosure requirements for fair value measurements by removing, adding, and modifying certain disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within that year.  Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU.  The Company has evaluated the impact of the adoption of ASU 2018-03 and has determined that there is no effect on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses" ("ASU 2016-13"). ASU 2016-13 amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 was effective on January 1, 2020, with early adoption permitted.  The Company adopted ASU 2016-13 during the first quarter of 2020 and it did not have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASC 842”), which replaced the existing guidance in ASC 840 – Leases (“ASC 840”).  This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases.  Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability for leases with lease terms of more than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases, the lessee would recognize a straight-line total lease expense.  Accounting by lessors will remain largely unchanged from current U.S. GAAP.  The requirements of this standard include an increase in required disclosures.  This ASU was effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years.  Lessees and lessors were required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” which provided clarifications and improvements to ASC 842, including allowing entities to elect an additional transition method with which to adopt ASC 842. The approved transition method enables entities to apply the transition requirements at the effective date of ASC 842 (rather than at the beginning of the earliest comparative period presented as currently required) with the effect of the initial application of ASC 842 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption. As a result, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with ASC 840, including the disclosure requirements of ASC 840. The Company adopted ASC 842 on January 1, 2019 using this transition method.

The new guidance provides a number of optional practical expedients in the transition. The Company had elected the package of practical expedients, which among other things, allows the carryforward of the historical lease classification. Further, upon implementation of the new guidance, the Company has elected the practical expedients to combine lease and non-lease components and to not recognize right-of-use assets and lease liabilities for short-term leases.  Upon adoption of ASC 842 on January 1, 2019, the Company recorded a right-of-use asset of $9,710 and an

operating lease liability of $13,095 in the Consolidated Balance Sheets. Refer to Note 14 — Leases for further information regarding our operating lease agreement and the effect of the adoption of ASC 842 from a lessor perspective.  

Pursuant to ASC 842, the Company has identified revenue from its time charter agreements as lease revenue.  Refer to Note 13 — Voyage revenues for additional information regarding the adoption of ASC 842 from a lessor perspective.

v3.22.0.1
GENERAL INFORMATION (Tables)
12 Months Ended
Dec. 31, 2021
GENERAL INFORMATION  
Schedule of wholly owned ship-owning subsidiaries

Below is the list of Company’s wholly owned ship-owning subsidiaries as of December 31, 2021:

Wholly Owned Subsidiaries

    

Vessel Acquired

    

Dwt

    

Delivery Date

    

Year Built

 

Genco Augustus Limited

 

Genco Augustus

 

180,151

 

8/17/07

 

2007

Genco Tiberius Limited

 

Genco Tiberius

 

175,874

 

8/28/07

 

2007

Genco London Limited

 

Genco London

 

177,833

 

9/28/07

 

2007

Genco Titus Limited

 

Genco Titus

 

177,729

 

11/15/07

 

2007

Genco Warrior Limited

 

Genco Warrior

 

55,435

 

12/17/07

 

2005

Genco Predator Limited

 

Genco Predator

 

55,407

 

12/20/07

 

2005

Genco Hunter Limited

 

Genco Hunter

 

58,729

 

12/20/07

 

2007

Genco Constantine Limited

 

Genco Constantine

 

180,183

 

2/21/08

 

2008

Genco Hadrian Limited

 

Genco Hadrian

 

169,025

 

12/29/08

 

2008

Genco Commodus Limited

 

Genco Commodus

 

169,098

 

7/22/09

 

2009

Genco Maximus Limited

 

Genco Maximus

 

169,025

 

9/18/09

 

2009

Genco Claudius Limited

 

Genco Claudius

 

169,001

 

12/30/09

 

2010

Genco Aquitaine Limited

 

Genco Aquitaine

 

57,981

 

8/18/10

 

2009

Genco Ardennes Limited

 

Genco Ardennes

 

58,018

 

8/31/10

 

2009

Genco Auvergne Limited

 

Genco Auvergne

 

58,020

 

8/16/10

 

2009

Genco Bourgogne Limited

 

Genco Bourgogne

 

58,018

 

8/24/10

 

2010

Genco Brittany Limited

 

Genco Brittany

 

58,018

 

9/23/10

 

2010

Genco Languedoc Limited

 

Genco Languedoc

 

58,018

 

9/29/10

 

2010

Genco Picardy Limited

 

Genco Picardy

 

55,257

 

8/16/10

 

2005

Genco Pyrenees Limited

 

Genco Pyrenees

 

58,018

 

8/10/10

 

2010

Genco Rhone Limited

 

Genco Rhone

 

58,018

 

3/29/11

 

2011

Genco Weatherly Limited

Genco Weatherly

61,556

7/26/18

2014

Genco Columbia Limited

Genco Columbia

60,294

9/10/18

2016

Genco Endeavour Limited

Genco Endeavour

181,060

8/15/18

2015

Genco Resolute Limited

Genco Resolute

181,060

8/14/18

2015

Genco Defender Limited

Genco Defender

180,021

9/6/18

2016

Genco Liberty Limited

Genco Liberty

180,032

9/11/18

2016

Genco Magic Limited

Genco Magic

63,446

12/23/20

2014

Genco Vigilant Limited

Genco Vigilant

63,498

1/28/21

2015

Genco Freedom Limited

Genco Freedom

63,671

2/2/21

2015

Genco Enterprise Limited

Genco Enterprise

63,473

8/23/21

2016

Genco Madeleine Limited

Genco Madeleine

63,166

8/23/21

2014

Genco Mayflower Limited

Genco Mayflower

63,304

8/24/21

2017

Genco Constellation Limited

Genco Constellation

63,310

9/3/21

2017

Baltic Lion Limited

Baltic Lion

179,185

4/8/15

(1)

2012

Baltic Tiger Limited

Genco Tiger

179,185

4/8/15

(1)

2011

Baltic Bear Limited

 

Baltic Bear

 

177,717

 

5/14/10

2010

Baltic Wolf Limited

 

Baltic Wolf

 

177,752

 

10/14/10

2010

Baltic Hornet Limited

 

Baltic Hornet

 

63,574

 

10/29/14

2014

Baltic Wasp Limited

 

Baltic Wasp

 

63,389

 

1/2/2015

2015

Baltic Scorpion Limited

 

Baltic Scorpion

 

63,462

 

8/6/15

2015

Baltic Mantis Limited

 

Baltic Mantis

 

63,470

 

10/9/15

2015

(1)The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading.
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2021
Summary of Significant Accounting Policies  
Schedule of restricted cash and cash equivalents

December 31, 

December 31, 

    

2021

    

2020

 

Cash and cash equivalents

 

$

114,573

 

$

143,872

Restricted cash - current

5,643

35,492

Restricted cash - noncurrent

 

315

 

315

Cash, cash equivalents and restricted cash

 

$

120,531

 

$

179,679

Estimated Useful Lives of Fixed Assets  
Summary of Significant Accounting Policies  
Schedule of fixed assets, net

Description

    

Useful lives

Leasehold improvements

 

Lesser of the estimated useful life of the asset or life of the lease

Furniture, fixtures & other equipment

 

5 years

Vessel equipment

 

2-15 years

Computer equipment

 

3 years

v3.22.0.1
NET EARNINGS (LOSS) PER SHARE (Tables)
12 Months Ended
Dec. 31, 2021
NET EARNINGS (LOSS) PER SHARE  
Components of denominator for calculation of basic and diluted net earnings (loss) per share

For the Years Ended December 31,

 

2021

    

2020

  

2019

 

Common shares outstanding, basic:

Weighted-average common shares outstanding, basic

42,060,996

 

41,907,597

41,762,893

Common shares outstanding, diluted:

Weighted-average common shares outstanding, basic

42,060,996

 

41,907,597

41,762,893

Dilutive effect of warrants

 

Dilutive effect of stock options

313,684

Dilutive effect of restricted stock units

214,191

 

Weighted-average common shares outstanding, diluted

42,588,871

 

41,907,597

41,762,893

v3.22.0.1
DEBT (Tables)
12 Months Ended
Dec. 31, 2021
Line of Credit Facility  
Schedule of components of Long-term debt

December 31, 

December 31, 

    

2021

    

2020

 

Principal amount

 

$

246,000

 

$

449,228

Less: Unamortized debt financing costs

 

(7,771)

 

(9,653)

Less: Current portion

 

 

(80,642)

Long-term debt, net

 

$

238,229

 

$

358,933

Schedule of long-term debt

December 31, 2021

December 31, 2020

Unamortized

Unamortized

Debt Issuance

Debt Issuance

    

Principal

    

Cost

    

Principal

    

Cost

 

$450 Million Credit Facility

$

246,000

$

7,771

$

$

$495 Million Credit Facility

334,288

8,222

$133 Million Credit Facility

114,940

1,431

Total debt

$

246,000

 

$

7,771

$

449,228

 

$

9,653

Schedule of effective interest rate and the range of interest rates on the debt

For the Years Ended December 31,

2021

2020

2019

Effective Interest Rate

3.22

%  

3.71

%  

5.31

%  

Range of Interest Rates (excluding unused commitment fees)

2.24 % to 3.48

%  

2.65 % to 3.50

%  

4.05 % to 5.76

%  

Secured Debt | $450 Million Credit Facility  
Line of Credit Facility  
Scheduled repayment of outstanding debt

Year Ending December 31, 

    

Total

2025

$

2,710

2026

243,290

Total debt

$

246,000

v3.22.0.1
DERIVATIVE INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2021
DERIVATIVE INSTRUMENTS  
Schedule of interest cap agreements

Interest Rate Cap Detail

Notional Amount Outstanding

December 31, 

Trade date

Cap Rate

Start Date

End Date

    

2021

March 25, 2021

0.75

%

April 29, 2021

March 28, 2024

$

50,000

July 29, 2020

0.75

%

July 31, 2020

December 29, 2023

100,000

March 6, 2020

1.50

%

March 10, 2020

March 10, 2023

50,000

$

200,000

Schedule of the effect of fair value and cash flow hedge accounting on the statement of operations

The Effect of Fair Value and Cash Flow Hedge Accounting on the Statement of Operations

For the Year Ended December 31, 

2021

    

2020

2019

Interest Expense

Interest Expense

Interest Expense

Total amounts of income and expense line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded

$

15,357

$

22,413

$

31,955

The effects of fair value and cash flow hedging

Gain or (loss) on cash flow hedging relationships in Subtopic 815-20:

Interest contracts:

Amount of gain or (loss) reclassified from AOCI to income

$

$

$

Premium excluded and recognized on an amortized basis

197

Amount of gain or (loss) reclassified from AOCI to income as a result that a forecasted transaction is no longer probable of occurring

Schedule of interest rate cap assets

December 31, 

Derivatives designated as hedging instruments

Balance Sheet Location

2021

Interest rate caps

Fair value of derivative instruments - noncurrent

$

1,166

Components of AOCI included in the accompanying condensed consolidated balance sheet

AOCI — January 1, 2021

$

Amount recognized in OCI on derivative, intrinsic

 

745

Amount recognized in OCI on derivative, excluded

 

80

Amount reclassified from OCI into income

 

AOCI — December 31, 2021

$

825

v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2021
FAIR VALUE OF FINANCIAL INSTRUMENTS  
Schedule of fair values and carrying values of the Company's financial instruments

December 31, 2021

December 31, 2020

    

Carrying

    

    

Carrying

    

 

    

Value

    

Fair Value

    

Value

    

Fair Value

 

Cash and cash equivalents

$

114,573

$

114,573

$

143,872

$

143,872

Restricted cash

 

5,958

 

5,958

 

35,807

 

35,807

Principal amount of floating rate debt

 

246,000

 

246,000

 

449,228

 

449,228

v3.22.0.1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)
12 Months Ended
Dec. 31, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS  
Schedule of prepaid expenses and other current assets

    

December 31, 

    

December 31, 

    

2021

    

2020

 

Vessel stores

$

297

$

501

Capitalized contract costs

1,983

1,669

Prepaid items

 

3,109

 

2,998

Insurance receivable

 

2,349

 

1,917

Advance to agents

827

1,466

Other

 

1,370

 

2,305

Total prepaid expenses and other current assets

$

9,935

$

10,856

v3.22.0.1
FIXED ASSETS (Tables)
12 Months Ended
Dec. 31, 2021
Detail of Fixed Assets, Excluding Vessels  
FIXED ASSETS  
Schedule of fixed assets

    

December 31, 

    

December 31, 

    

2021

    

2020

 

Fixed assets, at cost:

Vessel equipment

$

8,353

$

6,188

Furniture and fixtures

 

810

 

443

Leasehold improvements

1,386

1,369

Computer equipment

 

672

 

659

Total costs

 

11,221

 

8,659

Less: accumulated depreciation and amortization

 

(3,984)

 

(2,266)

Total fixed assets, net

$

7,237

$

6,393

v3.22.0.1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
12 Months Ended
Dec. 31, 2021
ACCOUNTS PAYABLE AND ACCRUED EXPENSES.  
Schedule of accounts payable and accrued expenses

    

December 31, 

    

December 31, 

    

2021

    

2020

 

Accounts payable

$

9,399

$

11,864

Accrued general and administrative expenses

 

4,719

 

3,258

Accrued vessel operating expenses

 

15,838

 

7,671

Total accounts payable and accrued expenses

$

29,956

$

22,793

v3.22.0.1
VOYAGE REVENUES (Tables)
12 Months Ended
Dec. 31, 2021
VOYAGE REVENUES  
Schedule of voyage revenue

For the Years Ended

December 31, 

    

2021

2020

2019

Lease revenue

$

160,242

$

78,402

$

108,096

Spot market voyage revenue

386,887

277,158

281,400

Total voyage revenues

$

547,129

$

355,560

$

389,496

v3.22.0.1
LEASES (Tables)
12 Months Ended
Dec. 31, 2021
LEASES  
Schedule of balance sheet information related to operating leases

December 31, 

 

2021

 

Operating Lease:

Operating lease right-of-use asset

$

5,495

Current operating lease liabilities

$

1,858

Long-term operating lease liabilities

 

6,203

Total operating lease liabilities

$

8,061

Weighted average remaining lease term (years)

3.75

Weighted average discount rate

5.15

%

Schedule of maturities of operating lease liabilities

December 31, 

 

2021

 

2022

$

2,230

2023

2,378

2024

2,453

2025

1,839

Total lease payments

8,900

Less imputed interest

(839)

Present value of lease liabilities

$

8,061

Schedule of cash flow information related to operating leases

For the Year Ended

December 31, 

2021

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

2,230

$

2,230

v3.22.0.1
STOCK-BASED COMPENSATION (Tables) - 2015 EIP Plan
12 Months Ended
Dec. 31, 2021
Stock Options  
Stock Awards  
Schedule of nonvested stock amortization expense

For the Years Ended December 31,

 

2021

2020

2019

General and administrative expenses

$

635

$

787

$

850

Schedule of stock option activity

For the Years Ended December 31,

2021

2020

2019

Weighted

Weighted

Weighted

Weighted

Weighted

Weighted

Number

Average

Average

Number

Average

Average

Number

Average

Average

of

Exercise

Fair

of

Exercise

Fair

of

Exercise

Fair

    

Options

    

Price

    

Value

    

Options

    

Price

    

Value

    

Options

    

Price

    

Value

Outstanding as of January 1

 

837,338

 

$

8.86

$

4.02

496,148

 

$

10.11

$

5.41

255,608

 

$

12.36

6.96

Granted

 

118,552

9.91

4.33

344,568

7.06

2.01

240,540

8.33

3.76

Exercised

 

(39,603)

8.37

3.46

Forfeited

 

(3,378)

8.07

3.76

Outstanding as of December 31

 

916,287

 

$

9.02

$

4.08

837,338

 

$

8.86

$

4.02

496,148

 

$

10.11

$

5.41

Exercisable as of December 31

 

488,969

 

$

9.88

$

5.04

293,792

 

$

10.78

$

6.01

173,869

 

11.41

$

6.68

The following table summarizes certain information about the options outstanding as of December 31, 2021:

Options Outstanding and Unvested,

Options Outstanding and Exercisable,

December 31, 2021

December 31, 2021

Weighted

Weighted

 

Weighted

Average

 

Weighted

Average

Weighted

Average

Exercise Price of

 

Average

Remaining

Average

Remaining

Outstanding

Number of

Exercise

Contractual

Number of

Exercise

Contractual

Options

    

Options

    

Price

    

Life

    

Options

    

Price

    

Life

 

$

9.02

 

427,318

$

8.04

4.25

488,969

$

9.88

2.59

Restricted Stock Units  
Stock Awards  
Schedule of nonvested stock amortization expense

For the Years Ended December 31,

 

2021

2020

2019

General and administrative expenses

$

1,632

$

1,239

$

1,207

Summary of nonvested restricted stock units

For the Years Ended December 31,

2021

2020

2019

Weighted

Weighted

Weighted

Number of

Average Grant

Number of

Average Grant

Number of

Average Grant

    

RSUs

Date Price

RSUs

Date Price

RSUs

    

Date Price

 

Outstanding as of January 1

298,834

$

7.49

162,096

$

9.26

149,170

$

12.42

Granted

159,492

11.93

221,903

6.80

140,914

8.50

Vested

(151,439)

7.79

(83,675)

9.07

(127,988)

12.10

Forfeited

(1,490)

8.39

Outstanding as of December 31

306,887

$

9.65

298,834

$

7.49

162,096

$

9.26

The total fair value of the RSUs that vested during the years ended December 31, 2021, 2020 and 2019 was $1,838, $550 and $1,235, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date.

The following table summarizes certain information of the RSUs unvested and vested as of December 31, 2021:

Unvested RSUs

Vested RSUs

December 31, 2021

December 31, 2021

Weighted

Weighted

Average

Weighted

Average

Remaining

Average

Number of

Grant Date

Contractual

Number of

Grant Date

RSUs

    

Price

    

Life

    

RSUs

    

Price

 

306,887

$

9.65

1.36

657,337

$

10.32

v3.22.0.1
GENERAL INFORMATION (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
item
segment
Dec. 31, 2020
item
Dec. 31, 2019
item
Segment reporting      
Number of reportable segments | segment 1    
Number of vessels in fleet | item 42 47 55
Proceeds from Noncontrolling Interests $ 50    
GSSM | Variable Interest Entity      
Segment reporting      
Ownership percentage 50.00%    
Payments to acquire ownership interest $ 50    
GSSM | Synergy      
Segment reporting      
Ownership percentage 50.00%    
Payments to acquire ownership interest $ 50    
v3.22.0.1
GENERAL INFORMATION - Vessel Details (Details) - item
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Vessels      
Number of vessels in fleet 42 47 55
Genco Augustus Limited | Genco Augustus      
Vessels      
Capacity of vessels 180,151    
Genco Tiberius Limited | Genco Tiberius      
Vessels      
Capacity of vessels 175,874    
Genco London Limited | Genco London      
Vessels      
Capacity of vessels 177,833    
Genco Titus Limited | Genco Titus      
Vessels      
Capacity of vessels 177,729    
Genco Warrior Limited | Genco Warrior      
Vessels      
Capacity of vessels 55,435    
Genco Predator Limited | Genco Predator      
Vessels      
Capacity of vessels 55,407    
Genco Hunter Limited | Genco Hunter      
Vessels      
Capacity of vessels 58,729    
Genco Constantine Limited | Genco Constantine      
Vessels      
Capacity of vessels 180,183    
Genco Hadrian Limited | Genco Hadrian      
Vessels      
Capacity of vessels 169,025    
Genco Commodus Limited | Genco Commodus      
Vessels      
Capacity of vessels 169,098    
Genco Maximus Limited | Genco Maximus      
Vessels      
Capacity of vessels 169,025    
Genco Claudius Limited | Genco Claudius      
Vessels      
Capacity of vessels 169,001    
Genco Aquitaine Limited | Genco Aquitaine      
Vessels      
Capacity of vessels 57,981    
Genco Ardennes Limited | Genco Ardennes      
Vessels      
Capacity of vessels 58,018    
Genco Auvergne Limited | Genco Auvergne      
Vessels      
Capacity of vessels 58,020    
Genco Bourgogne Limited | Genco Bourgogne      
Vessels      
Capacity of vessels 58,018    
Genco Brittany Limited | Genco Brittany      
Vessels      
Capacity of vessels 58,018    
Genco Languedoc Limited | Genco Languedoc      
Vessels      
Capacity of vessels 58,018    
Genco Picardy Limited | Genco Picardy      
Vessels      
Capacity of vessels 55,257    
Genco Pyrenees Limited | Genco Pyrenees      
Vessels      
Capacity of vessels 58,018    
Genco Rhone Limited | Genco Rhone      
Vessels      
Capacity of vessels 58,018    
Genco Weatherly Limited | Genco Weatherly      
Vessels      
Capacity of vessels 61,556    
Genco Columbia Limited | Genco Columbia      
Vessels      
Capacity of vessels 60,294    
Genco Endeavour Limited | Genco Endeavour      
Vessels      
Capacity of vessels 181,060    
Genco Resolute Limited | Genco Resolute      
Vessels      
Capacity of vessels 181,060    
Genco Defender Limited | Genco Defender      
Vessels      
Capacity of vessels 180,021    
Genco Liberty Limited | Genco Liberty      
Vessels      
Capacity of vessels 180,032    
Genco Magic | Genco Magic      
Vessels      
Capacity of vessels 63,446    
Genco Vigilant Limited [Member] | Genco Vigilant [Member]      
Vessels      
Capacity of vessels 63,498    
Genco Freedom Limited [Member] | Genco Freedom [Member]      
Vessels      
Capacity of vessels 63,671    
Genco Enterprise Limited [Member] | Genco Enterprise      
Vessels      
Capacity of vessels 63,473    
Genco Madeleine Limited [Member] | Genco Madeleine      
Vessels      
Capacity of vessels 63,166    
Genco Mayflower Limited [Member] | Genco Mayflower [Member]      
Vessels      
Capacity of vessels 63,304    
Genco Constellation Limited [Member] | Genco Constellation [Member]      
Vessels      
Capacity of vessels 63,310    
Baltic Lion Limited | Baltic Lion      
Vessels      
Capacity of vessels 179,185    
Baltic Tiger Limited | Genco Tiger      
Vessels      
Capacity of vessels 179,185    
Baltic Bear Limited | Baltic Bear      
Vessels      
Capacity of vessels 177,717    
Baltic Wolf Limited | Baltic Wolf      
Vessels      
Capacity of vessels 177,752    
Baltic Hornet Limited | Baltic Hornet      
Vessels      
Capacity of vessels 63,574    
Baltic Wasp Limited | Baltic Wasp      
Vessels      
Capacity of vessels 63,389    
Baltic Scorpion Limited | Baltic Scorpion      
Vessels      
Capacity of vessels 63,462    
Baltic Mantis Limited | Baltic Mantis      
Vessels      
Capacity of vessels 63,470    
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment (Details)
12 Months Ended
Dec. 31, 2021
segment
Segment reporting  
Number of reportable segments 1
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Voyage expense recognition (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Voyage expense recognition      
Net (gain) loss on purchase and sale of bunker fuel and net realizable value adjustments $ (1,889) $ 697 $ 829
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loss on Debt Extinguishment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      
Loss on debt extinguishment $ 4,408    
Due from charterers, reserve 1,403 $ 669  
Accrual Related to Estimated Customer Claims 364 358  
Charter Hire Expense $ 36,370 $ 10,307 $ 16,179
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vessels, net (Details)
$ in Thousands
12 Months Ended
Jan. 01, 2022
USD ($)
$ / item
Dec. 31, 2021
USD ($)
$ / item
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Vessels, net        
Estimated useful life   25 years    
Depreciation and amortization   $ 56,231 $ 65,168 $ 72,824
Estimated scrap value (in dollars per lightweight ton) | $ / item   310    
Subsequent Event        
Vessels, net        
Estimated scrap value (in dollars per lightweight ton) | $ / item 400      
Estimated life of average scrap value of steel 15 years      
Decrease in depreciation expense $ 4,500      
Vessels        
Vessels, net        
Depreciation and amortization   $ 49,417 $ 58,008 $ 66,351
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vessels held for exchange (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
item
Dec. 31, 2019
USD ($)
Dec. 17, 2020
item
Vessels, net        
Number of vessels held for exchange | item   5    
Vessels held for exchange   $ 38,214    
Contract liability   7,200    
Fixed assets, net        
Depreciation and amortization $ 56,231 65,168 $ 72,824  
Deferred drydocking costs        
Amortization expense for drydocking $ 5,055 $ 5,598 5,484  
Minimum        
Deferred drydocking costs        
Period for which vessels are required to be drydocked for major repairs and maintenance 30 months      
Maximum        
Deferred drydocking costs        
Period for which vessels are required to be drydocked for major repairs and maintenance 60 months      
Agreement To Exchange Vessels | Ultramax Vessels        
Vessels, net        
Number Of Vessels To Be Exchanged | item       3
Number of vessels exchanged | item   1    
Contract liability   $ 7,200    
Agreement To Exchange Vessels | Handysize Vessels        
Vessels, net        
Number Of Vessels To Be Exchanged | item       6
Number of vessels exchanged | item   1    
Furniture and Fixtures        
Fixed assets, net        
Useful lives 5 years      
Vessel equipment | Minimum        
Fixed assets, net        
Useful lives 2 years      
Vessel equipment | Maximum        
Fixed assets, net        
Useful lives 15 years      
Computer Equipment        
Fixed assets, net        
Useful lives 3 years      
Detail of Fixed Assets, Excluding Vessels        
Fixed assets, net        
Depreciation and amortization $ 1,759 $ 1,562 $ 989  
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of long-lived Assets (Details)
$ in Thousands
12 Months Ended
Jul. 06, 2021
USD ($)
Apr. 08, 2021
USD ($)
Jan. 25, 2021
USD ($)
Jan. 22, 2021
USD ($)
Dec. 17, 2020
USD ($)
item
Nov. 30, 2020
USD ($)
Nov. 27, 2020
USD ($)
Nov. 03, 2020
USD ($)
Oct. 16, 2020
USD ($)
Sep. 25, 2020
USD ($)
Sep. 17, 2020
USD ($)
Feb. 03, 2020
USD ($)
Nov. 04, 2019
USD ($)
Sep. 25, 2019
USD ($)
Sep. 20, 2019
USD ($)
Aug. 02, 2019
USD ($)
Dec. 31, 2021
$ / item
Dec. 31, 2020
USD ($)
item
Dec. 31, 2019
USD ($)
Sep. 30, 2020
USD ($)
item
Mar. 31, 2020
item
Feb. 24, 2020
item
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Impairment of long-lived assets                                                
Historical one-year time charter average period                                 10 years              
Time charter average period                                 1 year              
Estimated useful life                                 25 years              
Fleet utilization (as a percent)                                 98.00%              
Estimated scrap value (in dollars per lightweight ton) | $ / item                                 310              
Impairment of vessel assets                                   $ 208,935 $ 27,393          
Genco Cougar                                                
Impairment of long-lived assets                                                
Sale of assets           $ 7,600                                    
Broker commission (as a percent)           3.00%                                    
Genco Lorraine                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                   7,751            
Impairment of vessel assets                                   404            
Sale of assets $ 7,950     $ 7,950                                        
Broker commission (as a percent) 2.50%     2.50%                                        
Baltic Cougar                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                   7,372            
Impairment of vessel assets                                   790            
Baltic Leopard                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                   7,840            
Impairment of vessel assets                                   399            
Sale of assets   $ 8,000 $ 8,000                                          
Broker commission (as a percent)   2.00% 2.00%                                          
Baltic Hare                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                   7,595            
Impairment of vessel assets                                   $ 769            
Sale of assets             $ 7,750                                  
Broker commission (as a percent)             2.00%                                  
Supramax Vessels                                                
Impairment of long-lived assets                                                
Number impaired vessel assets | item                                   9            
Impairment of vessel assets                                   $ 67,200            
Ultramax Vessels | Agreement To Exchange Vessels                                                
Impairment of long-lived assets                                                
Number of vessels to be exchanged | item         3                                      
Handysize Vessels | Agreement To Exchange Vessels                                                
Impairment of long-lived assets                                                
Impairment of vessel assets                                   4,647            
Number of vessels to be exchanged | item         6                                      
Adjusted total fair market value of vessels         $ 46,000                                      
Broker commission (as a percent)         1.00%                                      
Baltic Panther                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                       $ 7,285        
Impairment of vessel assets                                   3,713            
Sale of assets               $ 7,510                                
Broker commission (as a percent)               3.00%                                
Genco Loire                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                       $ 7,497        
Impairment of vessel assets                                   3,408            
Sale of assets                 $ 7,650                              
Broker commission (as a percent)                 2.00%                              
Genco Lorraine, Baltic Cougar and Baltic Leopard                                                
Impairment of long-lived assets                                                
Number impaired vessel assets | item                                       3        
Impairment of vessel assets                                   7,963            
Baltic Jaguar                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                       $ 7,081        
Impairment of vessel assets                                   4,140            
Sale of assets                   $ 7,300                            
Broker commission (as a percent)                   3.00%                            
Genco Normandy                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                       $ 5,733        
Impairment of vessel assets                                   2,679            
Sale of assets                     $ 5,850                          
Broker commission (as a percent)                     2.00%                          
Genco Picardy, Genco Predator, Genco Provence and Genco Warrior                                                
Impairment of long-lived assets                                                
Number impaired vessel assets | item                                         4      
Impairment of vessel assets                                   27,055            
Baltic Hare, Baltic Fox, Baltic Wind, Baltic Cove, Baltic Breeze, Genco Ocean, Genco Bay, Genco Avra, Genco Mare and Genco Spirit                                                
Impairment of long-lived assets                                                
Number of vessels to be disposed | item                                           10    
Impairment of vessel assets                                   $ 85,768            
Baltic Wind, Baltic Breeze and Genco Bay                                                
Impairment of long-lived assets                                                
Number of vessels to be disposed | item                                         3      
Genco Charger                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                     5,099          
Impairment of vessel assets                                     1,314          
Sale of assets                       $ 5,150                        
Broker commission (as a percent)                       1.00%                        
Genco Raptor                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                             $ 9,996  
Impairment of vessel assets                                     5,812          
Sale of assets                         $ 10,200                      
Broker commission (as a percent)                         2.00%                      
Genco Thunder                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                             10,192  
Impairment of vessel assets                                     5,749          
Sale of assets                           $ 10,400                    
Broker commission (as a percent)                           2.00%                    
Genco Champion                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                             $ 6,402  
Impairment of vessel assets                                     621          
Sale of assets                             $ 6,600                  
Broker commission (as a percent)                             3.00%                  
Genco Challenger                                                
Impairment of long-lived assets                                                
Adjusted net sales price of vessel                                               $ 5,145
Impairment of vessel assets                                     4,401          
Sale of assets                               $ 5,250                
Broker commission (as a percent)                               2.00%                
Genco Champion and Genco Charger                                                
Impairment of long-lived assets                                                
Impairment of vessel assets                                     $ 9,496          
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Gain) loss on sale of vessels (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Gain on sale of vessels      
(Gain) loss on sale of vessels $ (4,924) $ 1,855 $ 168
Genco Provence Sales Partially Offset By Losses And Exchange Of Other Vessels      
Gain on sale of vessels      
(Gain) loss on sale of vessels $ (4,924)    
Genco Charger, Genco Thunder, Baltic Wind, Baltic Breeze, Genco Bay, Baltic Jaguar, Genco Loire, Genco Normandy and Genco Ocean      
Gain on sale of vessels      
(Gain) loss on sale of vessels   $ 1,855  
Genco Challenger, Genco Champion and Genco Raptor      
Gain on sale of vessels      
(Gain) loss on sale of vessels     $ 168
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, cash equivalents and restricted cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restricted Cash        
Cash and cash equivalents $ 114,573 $ 143,872    
Restricted cash - current 5,643 35,492    
Restricted cash - noncurrent 315 315    
Cash, cash equivalents and restricted cash $ 120,531 $ 179,679 $ 162,249 $ 202,761
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - United States Gross Transportation Tax (Details) - USD ($)
$ in Thousands
12 Months Ended
Aug. 15, 2018
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Taxes        
Gross transportation tax   $ 0 $ 0 $ 0
Ownership percentage held by each shareholder (as a percent)   5.00% 5.00% 5.00%
Federal tax rate (as a percent)   21.00%    
Tax rate on 50% of shipping income if not qualified for Section 883   4.00%    
Tax on branch profits   30.00%    
Percentage of shipping income sourced to United States if attributable to transportation exclusively between United States ports   100.00%    
Percentage of shipping income attributable to transportation that begins or ends in the United States included in United States source shipping income   50.00%    
Percentage of shipping income sourced to United States if no transportation is attributable to United States   0.00%    
Minimum        
Income Taxes        
Combined ownership held by 5% shareholders (as a percent)   50.00%    
Percentage of value of outstanding shares owned by the qualified shareholders of a foreign corporation   50.00%    
Maximum        
Income Taxes        
Combined ownership of shareholders for more than half the days of year (as a percent)   50.00% 50.00% 50.00%
Singapore | Genco Shipping Pte. Ltd. (GSPL)        
Income Taxes        
Federal tax rate (as a percent)   17.00%    
Initial period of the Maritime Sector Incentive award 10 years      
Initial performance review period of the Maritime Sector Incentive award 5 years      
Income tax expense   $ 0 $ 0 $ 0
Denmark | Genco Shipping A/S        
Income Taxes        
Federal tax rate (as a percent)   22.00% 22.00% 22.00%
Denmark | Genco Shipping A/S | Other income (expense)        
Income Taxes        
Income tax expense   $ 2 $ 407 $ 241
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
customer
item
Dec. 31, 2020
USD ($)
customer
item
Dec. 31, 2019
customer
Concentration Risk      
Number of financial institutions with which the entity maintains its cash and cash equivalents | item 4 5  
Cash insured by financial institutions | $ $ 0 $ 0  
Voyage Revenues | Customer Concentration Risk      
Concentration Risk      
Number of customers 139 166 170
Major Customers 0 0 0
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Jan. 01, 2019
Summary of Significant Accounting Policies      
Operating Lease, Right-of-use asset $ 5,495 $ 6,882  
Operating Lease, Liability $ 8,061    
Lease, Practical Expedient, Lessor Single Lease Component true    
ASU 2016-02 | Cumulative Effect Period Of Adoption Adjustment      
Summary of Significant Accounting Policies      
Operating Lease, Right-of-use asset     $ 9,710
Operating Lease, Liability     $ 13,095
v3.22.0.1
CASH FLOW INFORMATION - Non-cash (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Non-cash investing and financing activities      
Reclassification from vessels to vessels held for exchange   $ 38,214  
Reclassification from vessels to vessels held for sale   22,408 $ 10,303
Cash dividends paid $ 13,463 9,847 20,877
Cash paid for interest 11,749 18,420 28,376
Cash paid for estimated income taxes 0 0 0
Accounts payable and accrued expenses      
Non-cash investing and financing activities      
Purchases of vessels and ballast water treatment systems 1,643 857 548
Purchase of scrubbers 6 5 9,520
Purchase of other fixed assets 1,160 142 413
Net proceeds from sale of vessels   99 118
Non-cash financing activities cash dividends payable 157 $ 114 $ 74
Non-cash financing activities for financing costs $ 9    
v3.22.0.1
CASH FLOW INFORMATION - Stock-Based Compensation (Details) - 2015 EIP Plan - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
May 13, 2021
May 04, 2021
Feb. 23, 2021
Jul. 15, 2020
Feb. 25, 2020
May 15, 2019
Mar. 04, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted Stock Units                    
Non-cash investing and financing activities                    
Granted (in shares) 33,525,000 18,428 103,599 42,642 173,749 29,580 106,079 159,492 221,903 140,914
Aggregate fair value $ 515 $ 300 $ 1,027 $ 255 $ 1,227 $ 255 $ 890      
Stock Options                    
Non-cash investing and financing activities                    
Aggregate fair value     $ 513   $ 693   $ 904      
Options to purchase (in shares)     118,552   344,568   240,540 118,552 344,568 240,540
Exercise price     $ 9.91   $ 7.06   $ 8.065 $ 9.91 $ 7.06 $ 8.33
v3.22.0.1
VESSEL ACQUISITIONS AND DISPOSITIONS (Details)
$ in Thousands
12 Months Ended
Nov. 02, 2021
USD ($)
Aug. 03, 2021
Jul. 06, 2021
USD ($)
Apr. 08, 2021
USD ($)
Jan. 25, 2021
USD ($)
Jan. 22, 2021
USD ($)
Dec. 17, 2020
USD ($)
item
Jan. 28, 2019
USD ($)
May 31, 2018
Dec. 31, 2021
USD ($)
item
Dec. 31, 2020
USD ($)
item
Jul. 02, 2021
USD ($)
item
May 18, 2021
USD ($)
item
Apr. 20, 2021
USD ($)
item
VESSEL ACQUISITIONS                            
Deposits on vessels                   $ 18,543        
Restricted cash, current                   5,643 $ 35,492      
Amortization of fair market value of time charters acquired                   4,263        
Secured Debt | $450 Million Credit Facility                            
VESSEL ACQUISITIONS                            
Restricted Cash, Current                   $ 5,643        
Period for which sales proceeds from vessels will remain as restricted cash                   360 days        
Collateral vessel replacement period   360 days               360 days        
Secured Debt | $495 Million Credit Facility                            
VESSEL ACQUISITIONS                            
Restricted Cash, Current                     $ 35,492      
Period for which sales proceeds from vessels will remain as restricted cash                     360 days      
Collateral vessel replacement period                 120 days   360 days      
Number of vessels sold which served as collateral | item                     8      
Genco Mayflower, Genco Constellation and Genco Madeleine                            
VESSEL ACQUISITIONS                            
Number of vessels with below market time charters | item                   3        
Time charters acquired                   $ 4,263        
Amortization of fair market value of time charters acquired                   4,263        
Unamortized fair market value of time charters acquired                   0        
Agreement To Purchase Ultramax Newbuild Vessels | Genco Mary and Genco Laddey                            
VESSEL ACQUISITIONS                            
Number of vessels purchased under option to be acquired per purchase agreement | item                         2  
Capacity of vessels | item                         61,000  
Purchase price per vessel                         $ 29,170  
Deposits on vessels                   18,543        
Remaining purchase price of the vessels                   40,838        
Capitalized interest associated with new building contracts                   $ 292        
Agreement To Purchase Ultramax Vessels | Genco Mayflower and Genco Constellation                            
VESSEL ACQUISITIONS                            
Number of vessels purchased under option to be acquired per purchase agreement | item                       2    
Capacity of vessels | item                       63,000    
Purchase price per vessel                       $ 24,563    
Agreement To Purchase Ultramax Vessels | Genco Madeleine                            
VESSEL ACQUISITIONS                            
Capacity of vessels | item                       63,000    
Purchase price per vessel                       $ 21,875    
Agreement To Purchase Ultramax Vessels | Genco Enterprise                            
VESSEL ACQUISITIONS                            
Capacity of vessels | item                           64,000
Purchase price per vessel                           $ 20,200
Ultramax Vessels | Agreement To Exchange Vessels                            
VESSEL ACQUISITIONS                            
Number of vessels to be exchanged | item             3              
Handysize Vessels | Agreement To Exchange Vessels                            
VESSEL ACQUISITIONS                            
Number of vessels to be exchanged | item             6              
Adjusted total fair market value of vessels             $ 46,000              
Broker commission (as a percent)             1.00%              
Baltic Leopard                            
VESSEL ACQUISITIONS                            
Sale of assets       $ 8,000 $ 8,000                  
Broker commission (as a percent)       2.00% 2.00%                  
Genco Lorraine                            
VESSEL ACQUISITIONS                            
Sale of assets     $ 7,950     $ 7,950                
Broker commission (as a percent)     2.50%     2.50%                
Genco Vigour                            
VESSEL ACQUISITIONS                            
Sale of assets               $ 6,550            
Broker commission (as a percent)               2.00%            
Genco Provence                            
VESSEL ACQUISITIONS                            
Sale of assets $ 13,250                          
Broker commission (as a percent) 2.50%                          
v3.22.0.1
NET EARNINGS (LOSS) PER SHARE (Details) - shares
12 Months Ended
Jul. 10, 2014
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Common shares outstanding, basic:        
Weighted average common shares outstanding-basic   42,060,996 41,907,597 41,762,893
Common shares outstanding, diluted:        
Weighted average common shares outstanding-basic   42,060,996 41,907,597 41,762,893
Weighted-average common shares outstanding, diluted (in shares)   42,588,871 41,907,597 41,762,893
Restricted Stock Units        
Anti-dilutive shares (in shares)     298,834 162,096
Stock Options        
Anti-dilutive shares (in shares)     837,338 496,148
New Genco Equity Warrants        
Anti-dilutive shares (in shares)   3,936,761 3,936,761 3,936,761
New Genco Equity Warrants        
Equity warrant term 7 years      
Number of shares of new stock in which each warrant or right can be converted 0.10      
Stock Options        
Common shares outstanding, diluted:        
Dilutive effect of sharebased arrangements   313,684    
Restricted Stock Units        
Common shares outstanding, diluted:        
Dilutive effect of sharebased arrangements   214,191    
v3.22.0.1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
RELATED PARTY TRANSACTIONS      
Related party transactions $ 0 $ 0 $ 0
v3.22.0.1
DEBT - Components of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Line of Credit Facility    
Principal amount $ 246,000 $ 449,228
Less: Unamortized debt financing costs (7,771) (9,653)
Less: Current portion   (80,642)
Long-term debt, net 238,229 358,933
Secured Debt | $450 Million Credit Facility    
Line of Credit Facility    
Principal amount 246,000  
Less: Unamortized debt financing costs $ (7,771)  
Secured Debt | $495 Million Credit Facility    
Line of Credit Facility    
Principal amount   334,288
Less: Unamortized debt financing costs   (8,222)
Secured Debt | $133 Million Credit Facility    
Line of Credit Facility    
Principal amount   114,940
Less: Unamortized debt financing costs   $ (1,431)
v3.22.0.1
DEBT - Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Line of Credit Facility [Line Items]      
Deferred financing costs, noncurrent $ 7,771 $ 9,653  
Amortization of Financing Costs 3,536 3,903 $ 3,788
Interest Expense      
Line of Credit Facility [Line Items]      
Amortization of Financing Costs $ 3,536 $ 3,903 $ 3,788
v3.22.0.1
DEBT - Amended Facilities (Details) - Secured Debt
$ in Thousands
Nov. 05, 2019
USD ($)
facility
Mar. 31, 2020
USD ($)
Feb. 28, 2019
USD ($)
Amended $495 and $133 Credit Facilities      
Line of Credit Facility      
Number of amended credit facilities | facility 2    
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent) 18.75%    
Percentage limit of consolidated net income for which dividends can be paid 50.00%    
Amended $495 and $133 Credit Facilities | Minimum      
Line of Credit Facility      
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents $ 100,000    
Amended $495 and $133 Credit Facilities | Maximum      
Line of Credit Facility      
Collateral security maintenance test (as a percent) 200.00%    
$35,000 Scrubber Tranche      
Line of Credit Facility      
Maximum borrowing capacity $ 35,000 $ 34,025 $ 35,000
v3.22.0.1
DEBT - 450 Million Credit Facility (Details)
$ in Thousands
12 Months Ended
Aug. 31, 2021
USD ($)
Aug. 03, 2021
USD ($)
item
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Repayment of the outstanding debt        
Total debt     $ 246,000 $ 449,228
$450 Million Credit Facility | Secured Debt        
Debt        
Maximum borrowing capacity   $ 450,000 450,000  
Term of facilities   5 years    
Consecutive quarterly commitment reductions   $ 11,720    
Balloon payment   215,600    
Additional borrowing capacity   $ 150,000    
Drawdowns during the period $ 350,000   350,000  
Loan to value ratio   55.00%    
Remaining borrowing capacity     184,810  
Maximum total indebtedness to total capitalization (as a ratio)   70    
Number of vessels to serve as collateral under debt agreement | item   39    
Key covenant - Percentage of unrestricted cash to total indebtedness   5.00%    
Key covenant - Unrestricted cash and cash equivalents minimum per vessel   $ 500    
Repayment of secured debt     104,000  
Long-term debt     $ 238,229  
Commitment fee on unused daily average unutilized commitment (as a percent)   40.00%    
Number of vessels expected to be delivered unencumbered | item   5    
Collateral vessel replacement period   360 days 360 days  
Repayment of the outstanding debt        
2025     $ 2,710  
2026     243,290  
Total debt     $ 246,000  
Revolving credit facility | Secured Debt        
Debt        
Maximum borrowing capacity   $ 300,000    
Drawdowns during the period 200,000      
Term loan facility | Secured Debt        
Debt        
Maximum borrowing capacity   $ 150,000    
Drawdowns during the period $ 150,000      
Collateral Vessels Less Than Five Years Old | $450 Million Credit Facility | Secured Debt        
Debt        
Loan to value ratio   60.00%    
Collateral Vessels At Least Five Years Old But Not Older Than Seven Years | $450 Million Credit Facility | Secured Debt        
Debt        
Loan to value ratio   55.00%    
LIBOR | $450 Million Credit Facility        
Debt        
Margin increase or decrease based on performance of emissions targets   0.05%    
Minimum | $450 Million Credit Facility | Secured Debt        
Debt        
Collateral security maintenance test (as a percent)   140.00%    
Minimum | LIBOR | $450 Million Credit Facility | Secured Debt        
Debt        
Applicable margin over reference rate   2.15%    
Maximum | LIBOR | $450 Million Credit Facility | Secured Debt        
Debt        
Applicable margin over reference rate   2.75%    
v3.22.0.1
DEBT - 133 Million Credit Facility (Details) - Secured Debt
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 15, 2020
USD ($)
Jun. 11, 2020
USD ($)
Nov. 05, 2019
USD ($)
Aug. 14, 2018
USD ($)
item
Sep. 30, 2018
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
$133 Million Credit Facility                
Line of Credit Facility                
Maximum borrowing capacity             $ 133,000  
Term of facilities       5 years        
Drawdowns during the period             24,000  
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent)     18.75%          
Percentage limit of consolidated net income for which dividends can be paid     50.00%          
Key covenant - Unrestricted cash and cash equivalents minimum       $ 30,000        
Key covenant - Percentage of unrestricted cash to total indebtedness       7.50%        
Minimum working capital required       $ 0        
Maximum total indebtedness to total capitalization (as a ratio)       0.70        
Repayment of secured debt           $ 114,940 9,160 $ 6,320
Long-term debt           $ 0 $ 113,509  
$108 Million Credit Facility                
Line of Credit Facility                
Maximum borrowing capacity       $ 108,000        
Number of vessels to serve as collateral under debt agreement | item       6        
Drawdowns during the period         $ 108,000      
Maximum facility amount of fair market value of aggregate vessels at delivery (as a percent)         45.00%      
Repaid value of loan when certain debt terms are met       $ 0        
Average age of collateral vessels for repayment of loan       20 years        
Amount of periodic payment       $ 1,580        
$108 Million Credit Facility | LIBOR                
Line of Credit Facility                
Reference rate       LIBOR        
$108 Million Credit Facility | LIBOR | Through September 30, 2019                
Line of Credit Facility                
Applicable margin over reference rate       2.50%        
$108 Million Credit Facility | Agreement To Purchase Ultramax And Capesize Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item       6        
$108 Million Credit Facility | Agreement to Purchase Capesize Drybulk Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item       4        
$108 Million Credit Facility | Agreement To Purchase Ultramax Drybulk Vessels                
Line of Credit Facility                
Number of vessels committed to be acquired under purchase agreement | item       2        
Revolver                
Line of Credit Facility                
Maximum borrowing capacity   $ 25,000            
Drawdowns during the period $ 24,000              
Minimum amounts of borrowings   1,000            
Consecutive quarterly commitment reductions   $ 1,900            
Threshold percentage of ratio of outstanding loan to aggregate appraised value of collateral vessels.   60.00%            
Revolver | LIBOR                
Line of Credit Facility                
Reference rate   LIBOR            
Applicable margin over reference rate   3.00%            
Minimum | $133 Million Credit Facility                
Line of Credit Facility                
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents     $ 100,000          
Collateral security maintenance test (as a percent)       135.00%        
Minimum | $108 Million Credit Facility | LIBOR | Period After September 30, 2019                
Line of Credit Facility                
Applicable margin over reference rate       2.25%        
Maximum | $133 Million Credit Facility                
Line of Credit Facility                
Collateral security maintenance test (as a percent)     200.00%          
Maximum | $108 Million Credit Facility | LIBOR | Period After September 30, 2019                
Line of Credit Facility                
Applicable margin over reference rate       2.75%        
v3.22.0.1
DEBT - 495 Million Credit Facility (Details)
$ in Thousands
7 Months Ended 12 Months Ended
Jun. 30, 2021
USD ($)
Jun. 05, 2020
Mar. 31, 2020
USD ($)
Mar. 12, 2020
USD ($)
Nov. 05, 2019
USD ($)
Sep. 23, 2019
USD ($)
Aug. 28, 2019
USD ($)
Feb. 28, 2019
USD ($)
item
Feb. 13, 2019
Jun. 05, 2018
USD ($)
May 31, 2018
USD ($)
item
Mar. 12, 2020
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Aug. 03, 2021
USD ($)
Dec. 17, 2020
item
Nov. 15, 2019
USD ($)
Secured Debt | $495 Million Credit Facility                                    
Line of Credit Facility                                    
Maximum borrowing capacity                           $ 495,000   $ 495,000    
Drawdowns during the period                       $ 32,750   $ 11,250 $ 21,500      
Number of oldest vessels identified for sale for which debt will be paid down | item                     7              
Collateral vessel replacement period                     120 days     360 days        
Repayment of secured debt                         $ 334,288 $ 72,686 70,776      
Long-term debt                         0 326,066        
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent)         18.75%                          
Percentage limit of consolidated net income for which dividends can be paid         50.00%                          
Collateral vessel replacement extension period   360 days             180 days                  
Key covenant - Unrestricted cash and cash equivalents minimum                     $ 30,000              
Key covenant - Percentage of unrestricted cash to total indebtedness                     7.50%              
Minimum restricted cash required                     $ 0              
Minimum working capital required                     $ 0              
Maximum total indebtedness to total capitalization (as a ratio)                     0.70              
Key covenant - Minimum time charters period                     24 months              
Secured Debt | $495 Million Credit Facility | Genco Raptor                                    
Line of Credit Facility                                    
Vessel sale proceeds utilized as a loan repayment                           $ 6,045        
Secured Debt | $495 Million Credit Facility | Genco Champion and Genco Challenger                                    
Line of Credit Facility                                    
Vessel sale proceeds utilized as a loan repayment                             6,880      
Secured Debt | $495 Million Credit Facility | Genco Cavalier                                    
Line of Credit Facility                                    
Vessel sale proceeds utilized as a loan repayment                             $ 4,947      
Secured Debt | $495 Million Credit Facility | Genco Charger, Genco Thunder, Baltic Wind and Baltic Breeze                                    
Line of Credit Facility                                    
Vessel sale proceeds utilized as a loan repayment                         $ 18,182          
Secured Debt | $460 Million Credit Facility                                    
Line of Credit Facility                                    
Maximum borrowing capacity                     $ 460,000              
Term of facilities                     5 years              
Drawdowns during the period                   $ 460,000                
Number of oldest vessels identified for sale for which debt will be paid down | item                     7              
Repaid value of loan when certain debt terms are met                     $ 0              
Average age of collateral vessels for repayment of loan                     17 years              
Secured Debt | $460 Million Credit Facility | Period after December 31, 2018                                    
Line of Credit Facility                                    
Amortization payments per quarter                     $ 15,000              
Secured Debt | $460 Million Credit Facility | Period upon final maturity on May 31, 2023                                    
Line of Credit Facility                                    
Final payment amount                     $ 190,000             $ 189,605
Secured Debt | $460 Million Credit Facility | Period After December 30, 2019                                    
Line of Credit Facility                                    
Amount of periodic payment $ 12,400                                  
Secured Debt | $460 Million Credit Facility | LIBOR | Through December 31, 2018                                    
Line of Credit Facility                                    
Applicable margin over reference rate (as a percent)                   3.25%                
Secured Debt | $35,000 Scrubber Tranche                                    
Line of Credit Facility                                    
Maximum borrowing capacity     $ 34,025   $ 35,000     $ 35,000                    
Term of facilities               4 years                    
Drawdowns during the period       $ 11,250   $ 12,200 $ 9,300                      
Number of Capesize vessels for which the scrubber installation will be financed | item               17                    
Reference rate               LIBOR                    
Amount of periodic payment               $ 2,500                    
Final payment amount     1,904                              
Minimum amount required per borrowing               $ 5,000                    
Secured Debt | $35,000 Scrubber Tranche | Period After March 31, 2020                                    
Line of Credit Facility                                    
Amount of periodic payment     $ 2,339                              
Secured Debt | $35,000 Scrubber Tranche | LIBOR | Through September 30, 2019                                    
Line of Credit Facility                                    
Applicable margin over reference rate (as a percent)               2.50%                    
Secured Debt | Minimum | $495 Million Credit Facility                                    
Line of Credit Facility                                    
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents         $ 100,000                          
Collateral security maintenance test (as a percent)                     135.00%              
Secured Debt | Minimum | $460 Million Credit Facility | LIBOR | Period after December 31, 2018                                    
Line of Credit Facility                                    
Applicable margin over reference rate (as a percent)                   3.00%                
Secured Debt | Minimum | $35,000 Scrubber Tranche | LIBOR | Period After September 30, 2019                                    
Line of Credit Facility                                    
Applicable margin over reference rate (as a percent)               2.25%                    
Secured Debt | Maximum | $495 Million Credit Facility                                    
Line of Credit Facility                                    
Collateral security maintenance test (as a percent)         200.00%                          
Secured Debt | Maximum | $460 Million Credit Facility | LIBOR | Period after December 31, 2018                                    
Line of Credit Facility                                    
Applicable margin over reference rate (as a percent)                   3.50%                
Secured Debt | Maximum | $35,000 Scrubber Tranche                                    
Line of Credit Facility                                    
Percentage of scrubber costs to be financed               90.00%                    
Secured Debt | Maximum | $35,000 Scrubber Tranche | LIBOR | Period After September 30, 2019                                    
Line of Credit Facility                                    
Applicable margin over reference rate (as a percent)               2.75%                    
Agreement To Exchange Vessels | Ultramax Vessels                                    
Line of Credit Facility                                    
Number of vessels to be exchanged | item                                 3  
Agreement To Exchange Vessels | Handysize Vessels                                    
Line of Credit Facility                                    
Number of vessels to be exchanged | item                                 6  
v3.22.0.1
DEBT - Interest Rates (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Sep. 21, 2005
Sep. 30, 2015
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Interest rates on debt          
Effective Interest Rate (as a percent)     3.22% 3.71% 5.31%
Letter of credit          
Restricted cash     $ 315 $ 315  
Minimum          
Interest rates on debt          
Range of interest rates (excluding unused commitment fees)     2.24% 2.65% 4.05%
Maximum          
Interest rates on debt          
Range of interest rates (excluding unused commitment fees)     3.48% 3.50% 5.76%
Letter of credit          
Letter of credit          
Fee on letter of credit (as a percent) 1.00% 1.375% 1.375% 1.375%  
Amount of letters outstanding     $ 300 $ 300  
Restricted cash     $ 315 $ 315  
Letter of credit | Minimum          
Letter of credit          
Notice period for cancellation of line of credit     30 days    
v3.22.0.1
DERIVATIVE INSTRUMENTS - Agreements (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
item
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative, Notional Amount $ 200,000    
Gain recorded $ 825 $ 0 $ 0
Interest Rate Cap | Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Number of interest rate caps | item 3    
Gain recorded $ 825    
Amount of AOCI expected to be reclassified into earnings over the next 12 months $ 32    
Interest Rate Cap - March 28, 2024 | Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Cap rate (as a percent) 0.75%    
Derivative, Notional Amount $ 50,000    
Interest Rate Cap - December 29, 2023 | Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Cap rate (as a percent) 0.75%    
Derivative, Notional Amount $ 100,000    
Interest Rate Cap - March 10, 2023 | Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Cap rate (as a percent) 1.50%    
Derivative, Notional Amount $ 50,000    
v3.22.0.1
DERIVATIVE INSTRUMENTS - Fair Value and Cash Flow Hedge (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
DERIVATIVE INSTRUMENTS      
Total consolidated interest expense $ 15,357 $ 22,413 $ 31,955
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20:      
Interest contracts: Premium excluded and recognized on an amortized basis $ 197    
v3.22.0.1
DERIVATIVE INSTRUMENTS - Interest Rate Cap Assets (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Fair value of derivative instruments - noncurrent $ 1,166
Interest Rate Cap | Derivatives designated as hedging instruments  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Fair value of derivative instruments - noncurrent $ 1,166
v3.22.0.1
DERIVATIVE INSTRUMENTS - AOCI (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
DERIVATIVE INSTRUMENTS  
Amount recognized in OCI on derivative, intrinsic $ 745
Amount recognized in OCI on derivative, excluded 80
Balance at the end of the period $ 825
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - RECURRING (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair value of financial instruments    
Principal amount of floating rate debt $ 246,000 $ 449,228
Carrying Value    
Fair value of financial instruments    
Cash and cash equivalents 114,573 143,872
Restricted cash 5,958 35,807
Principal amount of floating rate debt 246,000 449,228
Fair value    
Fair value of financial instruments    
Cash and cash equivalents 114,573 143,872
Restricted cash 5,958 35,807
Principal amount of floating rate debt $ 246,000 $ 449,228
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - NONRECURRING (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
item
Dec. 31, 2020
USD ($)
item
Dec. 31, 2019
USD ($)
item
Fair value of financial instruments      
Impairment of operating lease right of use asset     $ 223
Fair Value, Measurements, Nonrecurring      
Fair value of financial instruments      
Number of vessels written down as part of impairment | item 0 30 5
Impairment of operating lease right of use asset $ 0 $ 0  
Fair Value, Measurements, Nonrecurring | Level 3      
Fair value of financial instruments      
Financial assets 0 0  
Financial liabilities $ 0 $ 0  
v3.22.0.1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
PREPAID EXPENSES AND OTHER CURRENT ASSETS    
Vessel stores $ 297 $ 501
Capitalized contract costs 1,983 1,669
Prepaid items 3,109 2,998
Insurance receivable 2,349 1,917
Advance to agents 827 1,466
Other 1,370 2,305
Total prepaid expenses and other current assets $ 9,935 $ 10,856
v3.22.0.1
FIXED ASSETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
FIXED ASSETS    
Total costs $ 11,221 $ 8,659
Less: accumulated depreciation and amortization (3,984) (2,266)
Total fixed assets, net 7,237 6,393
Vessel equipment    
FIXED ASSETS    
Total costs 8,353 6,188
Furniture and Fixtures    
FIXED ASSETS    
Total costs 810 443
Leasehold improvements    
FIXED ASSETS    
Total costs 1,386 1,369
Computer Equipment    
FIXED ASSETS    
Total costs $ 672 $ 659
v3.22.0.1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
ACCOUNTS PAYABLE AND ACCRUED EXPENSES.    
Accounts payable $ 9,399 $ 11,864
Accrued general and administrative expenses 4,719 3,258
Accrued vessel operating expenses 15,838 7,671
Total accounts payable and accrued expenses $ 29,956 $ 22,793
v3.22.0.1
VOYAGE REVENUES (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income statement      
Lease, Practical Expedient, Lessor Single Lease Component true    
Lease revenue $ 160,242 $ 78,402 $ 108,096
Voyage Revenue 386,887 277,158 281,400
Total revenues 547,129 355,560 389,496
Voyage      
Income statement      
Total revenues $ 547,129 $ 355,560 $ 389,496
v3.22.0.1
LEASES - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jan. 17, 2022
Jun. 14, 2019
Jun. 30, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Jan. 17, 2019
Apr. 04, 2011
Leases                
Impairment of operating lease right of use asset           $ 223    
Total lease cost       $ 1,852 $ 1,912 1,884    
New York                
Leases                
Lease term               7 years
Impairment of operating lease right of use asset     $ 223          
Sublease income       $ 1,223 $ 1,223 $ 72    
Singapore                
Leases                
Lease term             3 years  
Singapore | Subsequent Event                
Leases                
Lessee, Operating Lease, Existence of Option to Extend [true false] true              
Renewal term 2 years              
Period from July 26, 2019 to September 29, 2025 | New York                
Leases                
Free base rental period of the sublease   4 months 15 days            
Period from December 10, 2019 to September 29, 2025 | New York                
Leases                
Monthly base sublease income   $ 102            
v3.22.0.1
LEASES - Balance Sheet Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Operating lease    
Operating lease right-of-use assets $ 5,495 $ 6,882
Current operating lease liabilities 1,858 1,765
Long-term operating lease liabilities 6,203 $ 8,061
Present value of lease liabilities $ 8,061  
Weighted average remaining lease term (years) 3 years 9 months  
Weighted average discount rate 5.15%  
v3.22.0.1
LEASES - Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Operating Lease Liabilities - ASC 842    
2022 $ 2,230  
2023 2,378  
2024 2,453  
2025 1,839  
Total lease payments 8,900  
Less: Imputed interest (839)  
Present value of lease liabilities 8,061  
Operating cash flow payments $ 2,230 $ 2,230
v3.22.0.1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Thousands
6 Months Ended 12 Months Ended
Jan. 17, 2020
item
Dec. 21, 2018
item
Dec. 31, 2018
USD ($)
item
Dec. 31, 2019
item
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Purchase commitment            
Vessel assets         $ 981,141 $ 919,114
Purchase Agreements for BWTS            
Purchase commitment            
Number of vessels to receive ballast water treatments systems | item     36      
Vessel assets         18,992 17,009
2022 purchase obligation         3,787  
Purchase Agreement of BWTS for Capesize Vessels            
Purchase commitment            
BWTS purchase price     $ 900      
Purchase Agreement of BWTS for Supramax Vessels            
Purchase commitment            
BWTS purchase price     $ 600      
Scrubber Installation Agreements            
Purchase commitment            
Number of Capesize vessels to receive scrubber installations | item   17        
Number of completed scrubber installations | item 1     16    
Vessel assets         $ 42,927 $ 42,728
v3.22.0.1
SAVINGS PLAN (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
SAVINGS PLAN      
Employer's dollar matching contribution for each employee up to 6% to the 401(k) plan $ 1.33    
Employer's matching contribution (as a percent) 6.00%    
Employer's matching contribution $ 440,000 $ 473,000 $ 399,000
v3.22.0.1
STOCK-BASED COMPENSATION - 2014 MIP (Details) - 2014 MIP Plan
$ / shares in Units, $ in Thousands
Aug. 07, 2014
USD ($)
tranche
$ / shares
shares
Jul. 09, 2014
item
shares
Feb. 25, 2020
$ / shares
Stock Awards      
Aggregate number of shares of common stock available for awards | shares   966,806  
Warrants      
Stock Awards      
Number of tiers of MIP Warrants | item   3  
Number of tranches | tranche 3    
Aggregate fair value of awards upon issuance | $ $ 54,436    
Warrants | $240.89 Warrants      
Stock Awards      
Aggregate number of shares of common stock available for awards | shares 238,066    
Fair value of warrant (in dollars per share) $ 7.22    
Exercise price per share, as adjusted by dividends     $ 240.89221
Warrants | $267.11 Warrants      
Stock Awards      
Aggregate number of shares of common stock available for awards | shares 246,701    
Fair value of warrant (in dollars per share) $ 6.63    
Exercise price per share, as adjusted by dividends     267.11051
Warrants | $317.87 Warrants      
Stock Awards      
Aggregate number of shares of common stock available for awards | shares 370,979    
Fair value of warrant (in dollars per share) $ 5.63    
Exercise price per share, as adjusted by dividends     $ 317.87359
v3.22.0.1
STOCK-BASED COMPENSATION - 2015 EIP Stock Options and Other (Details) - 2015 EIP Plan - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Feb. 23, 2021
Feb. 25, 2020
Nov. 05, 2019
Mar. 04, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Mar. 19, 2021
Mar. 18, 2021
Mar. 23, 2017
Mar. 22, 2017
Jun. 26, 2015
Stock options                        
Aggregate number of shares of common stock available for awards               4,750,000 2,750,000 2,750,000 400,000 400,000
Nonemployee Directors                        
Additional disclosures                        
Maximum annual limit for grants (in shares)                   500,000    
Other Individuals                        
Additional disclosures                        
Maximum annual limit for grants (in shares)                   1,000,000    
Stock Options                        
Stock options                        
Vesting percentage of awards 33.33% 33.33%   33.33%                
Vesting period 3 years 3 years   3 years                
Unrecognized compensation cost                        
Unamortized compensation cost         $ 367              
Future amortization of stock based compensation                        
2022         278              
2023         81              
2024         $ 8              
Number of Options                        
Outstanding at beginning of period (in shares)         837,338 496,148 255,608          
Granted (in shares) 118,552 344,568   240,540 118,552 344,568 240,540          
Exercised (in shares)         (39,603)              
Forfeited (in shares)           (3,378)            
Outstanding at end of period (in shares)         916,287 837,338 496,148          
Weighted Average Exercise Price                        
Outstanding at beginning of period (in dollars per share)         $ 8.86 $ 10.11 $ 12.36          
Granted (in dollars per share) $ 9.91 $ 7.06   $ 8.065 9.91 7.06 8.33          
Exercised (in dollars per share)         8.37              
Forfeited (in dollars per share)           8.07            
Outstanding at end of period (in dollars per share)         9.02 8.86 10.11          
Weighted Average Fair Value                        
Outstanding at beginning of period (in dollars per share)         4.02 5.41 6.96          
Granted (in dollars per share) $ 4.33 $ 2.01   $ 3.76 4.33 2.01 3.76          
Exercised (in dollars per share)         3.46              
Forfeited (in dollars per share)           3.76            
Outstanding at end of period (in dollars per share)         $ 4.08 $ 4.02 $ 5.41          
Options outstanding and unvested         427,318              
Weighted Average Exercise Price Of Outstanding and Unvested Options         $ 8.04              
Options Outstanding and Unvested, Weighted Average Remaining Contractual Life         4 years 3 months              
Options Exercisable, Number of options         488,969 293,792 173,869          
Options Exercisable, Weighted Average Exercise Price         $ 9.88 $ 10.78 $ 11.41          
Options Exercisable, Weighted Average Fair Value (in dollars per share)         $ 5.04 $ 6.01 $ 6.68          
Options Exercisable, Weighted Average Remaining Contractual Life         2 years 7 months 2 days              
Aggregate fair value $ 513 $ 693   $ 904                
Stock options outstanding         916,287 837,338 496,148          
Assumptions and Methodology                        
Weighted average volatility rate (as a percent) 60.91% 53.91%   55.23%                
Risk-free interest rate ( as a percent) 0.41% 1.41%   2.49%                
Dividend rate ( as a percent) 0.98% 7.13%   0.00%                
Expected life (in years) 4 years 4 years   4 years                
Stock Options | General and Administrative Expense                        
Stock options                        
Amortization expense         $ 635 $ 787 $ 850          
Stock Options | Exercise Price - $8.065                        
Weighted Average Exercise Price                        
Granted (in dollars per share)     $ 8.065                  
Stock Options | Exercise Price - $7.06                        
Weighted Average Exercise Price                        
Granted (in dollars per share)   $ 7.06                    
Stock Options | Exercise Price - $9.91                        
Weighted Average Exercise Price                        
Granted (in dollars per share) $ 9.91                      
v3.22.0.1
STOCK-BASED COMPENSATION - 2015 EIP Restricted Stock Units (Details) - 2015 EIP Plan - Restricted Stock Units - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
May 13, 2021
May 04, 2021
Feb. 23, 2021
Jul. 15, 2020
Feb. 25, 2020
May 15, 2019
Mar. 04, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Stock Awards                    
Number of common shares outstanding in respect of RSUs               478,848 373,588  
Vesting period of awards               3 years    
Number of Shares                    
Balance at the beginning of the period (in shares)               298,834 162,096 149,170
Granted (in shares) 33,525,000 18,428 103,599 42,642 173,749 29,580 106,079 159,492 221,903 140,914
Vested (in shares)       (29,580)       (151,439) (83,675) (127,988)
Forfeited (in shares)                 (1,490)  
Balance at the end of the period (in shares)               306,887 298,834 162,096
Number of shares vested               657,337    
Weighted Average Grant Date Price, Vested               $ 10.32    
Weighted Average Fair Value                    
Balance at the beginning of the period (in dollars per share)               7.49 $ 9.26 $ 12.42
Granted (in dollars per share)               11.93 6.80 8.50
Vested (in dollars per share)               7.79 9.07 12.10
Forfeited (in dollars per share)                 8.39  
Balance at the end of the period (in dollars per share)               $ 9.65 $ 7.49 $ 9.26
Weighted-average remaining contractual life               1 year 4 months 9 days    
Additional disclosures                    
Total fair value of shares vested               $ 1,838 $ 550 $ 1,235
Unrecognized compensation cost related to nonvested stock awards                    
Unrecognized compensation cost               $ 1,059    
Weighted-average period for recognition of unrecognized compensation cost               1 year 4 months 9 days    
General and Administrative Expense                    
Additional disclosures                    
Recognized nonvested stock amortization expense               $ 1,632 $ 1,239 $ 1,207
v3.22.0.1
SUBSEQUENT EVENTS (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Feb. 23, 2022
Jan. 26, 2022
May 13, 2021
May 04, 2021
Feb. 23, 2021
Jul. 15, 2020
Feb. 25, 2020
May 15, 2019
Mar. 04, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Subsequent Event [Line Items]                        
Dividends declared per share of common stock                   $ 0.32 $ 0.235 $ 0.50
Secured Debt | $450 Million Credit Facility                        
Subsequent Event [Line Items]                        
Repayment of secured debt                   $ 104,000    
Restricted Stock Units | 2015 EIP Plan                        
Subsequent Event [Line Items]                        
Granted (in shares)     33,525,000 18,428 103,599 42,642 173,749 29,580 106,079 159,492 221,903 140,914
Vesting period of awards                   3 years    
Subsequent Event                        
Subsequent Event [Line Items]                        
Dividends declared per share of common stock $ 0.67                      
Aggregate amount of dividend $ 28,400                      
Subsequent Event | Secured Debt | $450 Million Credit Facility                        
Subsequent Event [Line Items]                        
Repayment of secured debt   $ 8,750                    
Subsequent Event | Restricted Stock Units | 2015 EIP Plan                        
Subsequent Event [Line Items]                        
Granted (in shares) 201,934                      
Vesting percentage of awards 33.33%                      
Vesting period of awards 3 years