Euroseas charters out feeder boxship at more than double the previous rate

Nasdaq-listed Greek containership owner Euroseas has sealed a new time charter contract for 1999-built 1,732 teu boxship Joanna.

The new contract, with an unnamed charterer, will commence between April 20 and May 2 for a period 18-21 months at a daily rate of $16,800. The vessel’s current charter is at just $8,050 per day.

Aristides Pittas, chairman and CEO of Euroseas, commented: “We are pleased to announce the new charter for our vessel, M/V ‘Joanna‘, for a minimum period of eighteen months at a rate more than twice the level of her existing employment. The new charter will secure a minimum of $9m of contracted revenues and will make an annualized EBITDA contribution of approximately $3.2m. This new charter further improves our profitability and cash flow visibility.

“The continuing strength of the containership market has allowed us to renew the charters of seven of our vessels since November of 2020 at rates, generally, more than double of their previous levels. The rate of an additional vessel in our fleet, M/V “Synergy Oakland”, is linked to a market index and is reset every three months according to market levels. Still, there are four of our vessels with legacy rates that are due to have their charters renewed over the next four months. Should these renewals reflect the current market levels, they will further increase our profitability. Our fleet is generating significant cash flow which would be available to further strengthen our balance sheet and be used for further investment or for reinstitution of dividends or a combination thereof, as always, at the discretion of our board or directors.”

Euroseas owns a fleet of 14 boxships ranging from 1,439 teu to 5,610 teu.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
Back to top button