Greek containership owner Euroseas has announced a new charter for one of its boxships and an extension on another.
2007-built 3,091 teu EM Kea has been extended by the current charterer for a period of between 25 and 28 months at a daily rate of $22,000. The new rate will commence on April 25, about two months earlier than the expiration of the present charter.
Meanwhile, 2009-built 4,253 teu Synergy Busan has entered into a new time charter contract for between 36 and 40 months at a daily rate of $25,000. The vessel is expected to commence the charter between June 9 and August 9.
Aristides Pittas, chairman and CEO of Euroseas, commented: “We are very pleased to announce new charters for two of our vessels for periods of at least two and three years, respectively, at rates more than twice the levels of their existing employment. The new charters secure a minimum of $40m of contracted revenues and make an annualized EBITDA contribution of approximately $11.5m which is about $9.0m higher than, or 4.5 times, their present contribution of about $2.5m, significantly improving our profitability and cash flow visibility.
“Undoubtedly, the containership markets have had a remarkable run over the last six months with all factors in the marketplace suggesting continuing strength. After these two charters, seven of our fourteen vessels would be earning higher rates reflective of the recent market recovery. If the present market levels continue, renewals of the five remaining charters with legacy rates expiring in 2021 should result in significant further increase in our profitability.”
Euroseas currently owns a fleet of 14 boxships.