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Fair Value Measurements and Hedging | 12 Months Ended
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Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Fair Value Measurements and Hedging | 17. Fair Value Measurements and Hedging: The guidance for fair value measurements applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the 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 same guidance requires that assets and liabilities carried at fair value should be classified and disclosed in one of the following three categories based on the inputs used to determine its fair value: Level 1: Quoted market prices in active markets for identical assets or liabilities; Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data; Level 3: Unobservable inputs that are not corroborated by market data. In addition, ASC 815, “Derivatives and Hedging” requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. Fair value on a recurring basis: Interest rate swaps: The Company from time to time enters into interest rate derivative contracts to manage interest costs and risk associated with changing interest rates with respect to its variable interest loans and credit facilities. As of December 2019, the Company had no interest rate swaps open positions. During the year ended December 31, 2020, the Company entered into various interest rate swaps with ING, DNB Bank ASA (“DNB”), SEB, Citibank Europe PLC (“Citi”), Piraeus Bank and Alpha Bank to convert a portion of its debt from floating to fixed rate. In addition, during the year ended December 31, 2021, the Company early terminated certain of those interest rate swaps that were in effect as of December 31, 2020 and entered into a new interest rate swap agreement with the National Bank of Greece (“NBG”), SEB and ABN AMRO Bank. The following table summarizes the interest rate swaps in place as of December 31, 2021. Fair Value Measurements and Hedging - Schedule of Derivative Instrument
Counterparty | Trading Date | Inception | Expiry | Fixed Rate | Initial Notional | Current Notional
ING | March 10, 2020 | March 29, 2020 | March 29, 2026 | 0.7000% | $ 29,960 | $ 26,215
ING | March 10, 2020 | April 2, 2020 | October 2, 2025 | 0.7000% | $ 39,375 | $ 33,750
ING | March 18, 2020 | April 3, 2020 | April 3, 2023 | 0.6750% | $ 16,157 | $ 14,293
SEB | March 6, 2020 | April 30, 2020 | January 30, 2025 | 0.7270% | $ 58,885 | $ 51,072
Citi | June 11, 2020 | July 30, 2020 | October 18, 2023 | 0.3300% | $ 104,450 | $ 86,200
Citi | June 11, 2020 | August 10, 2020 | May 10, 2024 | 0.3510% | $ 56,075 | $ 49,587
Citi | June 11, 2020 | June 22, 2020 | December 20, 2023 | 0.3380% | $  94,538 | $ 74,557
Citi | June 11, 2020 | June 29, 2020 | August 28, 2023 | 0.3280% | $ 56,915 | $ 44,075
Citi | June 11, 2020 | July 21, 2020 | July 21, 2023 | 0.3250% | $ 99,816 | $ 88,725
Citi | June 11, 2020 | August 28, 2020 | May 28, 2024 | 0.3520% | $ 31,350 | $ 27,700
Citi | June 11, 2020 | September 1, 2020 | March 1, 2024 | 0.3430% | $ 33,390 | $ 30,298
ING July 20 | July 8, 2020 | July 6, 2020 | July 6, 2026 | 0.3700% | $ 70,000 | $ 55,417
SEB | February 12, 2021 | April 26, 2021 | January 26, 2026 | 0.4525% | $ 37,050 | $ 33,150
ABN | February 24, 2021 | March 20, 2021 | December 20, 2023 | 0.3120% | $ 84,548 | $ 74,557
NBG | June 29, 2021 | June 28, 2021 | June 28, 2023 | 0.6500% | $ 125,000 | $ 117,500
17. Fair Value Measurements and Hedging - (continued): The above interest rate swaps were designated and qualified as cash flow hedges. The effective portion of the unrealized gains/losses from those swaps is recorded in Other Comprehensive Income / (Loss). No portion of the cash flow hedges was ineffective during the years ended December 31, 2020 and 2021. A loss of approximately $654 in connection with the interest rate swaps is expected to be reclassified into earnings during the following 12-month period when realized. Forward Freight Agreements (“FFAs”) and Bunker Swaps: During the years ended December 31, 2019, 2020 and 2021, the Company entered into a certain number of FFAs and options for FFAs on the Capesize, Panamax and Supramax indices. The results of the Company’s FFAs during the years ended December 31, 2019, 2020 and 2021 and the valuation of the Company’s open position as at December 31, 2020 and 2021 are presented in the tables below. During the years ended December 31, 2019, 2020 and 2021, the Company entered into a certain number of bunker swaps. The results of the Company’s bunker swaps during the years ended December 31, 2019, 2020 and 2021 and the valuation of the Company’s open position as at December 31, 2020 and 2021 are presented in the tables below. The amount of Gain/(loss) on forward freight agreements and bunker swaps, net and on interest rate swaps recognized in the consolidated statements of operations are analyzed as follows: Fair Value Measurements and Hedging - Derivative instruments effect on statement of operations (Table)
|  | Years ended December 31,
|  | 2019 |  | 2020 |  | 2021
Consolidated Statement of Operations |  |  |  |  |  |
Interest and finance costs |  |  |  |  |  |
Reclassification adjustments of interest rate swap loss/(gain) transferred to Interest and finance costs from Other comprehensive income/(loss) (Note 7) |  | – |  | (848) |  | (2,351)
Total Gain/(loss) recognized | $ | – | $ | (848) | $ | (2,351)
Gain/(loss) on forward freight agreements and bunker swaps, net |  |  |  |  |  |
Realized gain/(loss) on forward freight agreements and freight options |  | 6,043 |  | (5,995) |  | 1,308
Realized gain/(loss) on bunker swaps |  | (1,386) |  | 20,856 |  | 748
Unrealized gain/(loss) on forward freight agreements and freight options |  | (321) |  | (430) |  | 1,802
Unrealized gain/(loss) on bunker swaps |  | 75 |  | 1,725 |  | (294)
Total Gain/(loss) recognized | $ | 4,411 | $ | 16,156 | $ | 3,564
17. Fair Value Measurements and Hedging - (continued): The following table summarizes the valuation of the Company’s derivative financial instruments as of December 31, 2020 and 2021, based on Level 1 quoted market prices in active markets. Fair Value Measurements and Hedging - Fair value on a recurring basis - Quoted Prices in Active Markets (Table)
|  | Quoted Prices in Active Markets for Identical Assets (Level 1)
|  | December 31, 2020 | December 31, 2021
| Balance Sheet Location | (not designated as cash flow hedges) | (designated as cash flow hedges) | (not designated as cash flow hedges) | (designated as cash flow hedges)
ASSETS |  |  |  |  |
Bunker swaps - current | Derivatives, current asset portion | $ | - | - | $ | 7 | -
Freight derivatives - current | Derivatives, current asset portion | $ | - | - | $ | 1,440 | -
Freight derivatives - non-current | Derivatives, non-current asset portion | $ | - | - | $ | 150 | -
Total |  | $ | - | - | $ | 1,597 | -
LIABILITIES |  |  |  |  |
Bunker swaps - current | Derivatives, current liability portion | $ | - | - | $ | 300 | -
Freight derivatives - current | Derivatives, current liability portion | $ | 212 | - | $ | - | -
Total |  | $ | 212 | - | $ | 300 | -
Certain of the Company’s derivative financial instruments discussed above require the Company to periodically post additional collateral depending on the level of any open position under such financial instruments, which as of December 31, 2020 and 2021 amounted to $895 and $10,128, respectively, and are included within “Restricted cash, current” in the consolidated balance sheets. The carrying values of temporary cash investments, restricted cash, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. The fair value of long-term bank loans and bareboat leases (Level 2), bearing interest at variable interest rates, approximates their recorded values as of December 31, 2021, due to the variable interest rate nature thereof. The fair value of the DSF $55,000 Facility, measured through level 2 inputs (such as interest rate curves) is $49,008, which is $354 higher than the loan’s book value of $48,654. The following table summarizes the valuation of the Company’s financial instruments as of December 31, 2020 and 2021, based on Level 2 observable market based inputs or unobservable inputs that are corroborated by market data. Fair Value Measurements and Hedging - Fair value on a recurring basis - Significant Other Observable Inputs (Table)
|  | Significant Other Observable Inputs (Level 2)
|  | December 31, 2020 | December 31, 2021
| Balance Sheet Location | (not designated as cash flow hedges) | (designated as cash flow hedges) | (not designated as cash flow hedges) | (designated as cash flow hedges)
ASSETS |  |  |  |  |
Interest rate swaps - current | Derivatives, current asset portion | $ - | – | $ - | 549
Interest rate swaps - non-current | Derivatives, non-current asset portion | $ - | – | $ - | 6,763
Total |  | $ - | – | $ - | 7,312
LIABILITIES |  |  |  |  |
Interest rate swaps - current | Derivatives, current liability portion | $ - | 1,727 | $ - | 443
Interest rate swaps - non-current | Derivatives, non-current liability portion | $ - | 2,265 | $ - | –
Total |  | $ - | 3,992 | $ - | 443
17. Fair Value Measurements and Hedging - (continued): Fair value on a nonrecurring basis The Company reviewed, in 2019, 2020 and 2021 the recoverability of the carrying amount of its vessels. During 2019, the Company recognized impairment loss of $3,411 related to the agreed and intended sale of two vessels (Note 5). The carrying value of the respective vessels was written down to the fair value as determined by reference to their agreed or negotiated sale prices (Level 2). The table following table summarizes the valuation of these assets measured at fair value on a non-recurring basis as of December 31, 2019: Fair Value Measurements and Hedging - Fair value measurements on a nonrecurring basis (Table)
Long-lived assets held and used | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Impairment loss
(Level 1) | (Level 2) | (Level 3)
Vessels, net | $ - | $ | 24,475 | $ - | $ | 3,411
TOTAL | $ - | $ | 24,475 | $ - | $ | 3,411
The Company’s impairment analysis as of December 31, 2020 and 2021, indicated that the carrying amount of the Company’s vessels, was recoverable, and therefore, the Company concluded that no impairment charge was necessary.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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