Greek containership operator Euroseas has announced its latest charters of two of its vessels at “more than double” the rate of its existing contracts, highlighting the continued strength of the containership market.
The company announced Wednesday that its 2,556-TEU MV M/V “Evridiki G,” built in 2001, signed a new 36- to 38-month charter at a daily rate of $40,000. Meanwhile, its MV EM Corfu, of the same capacity and age, has been chartered for between 36 and 38 months also at a daily rate of $40,000. Charters are expected to commence on February 1, 2022 and after a drydocking period in mid-February 2022, respectively.
“We are very pleased to announce new charters for two of our vessels for periods of at least three years each at rates double their current employment levels,” said Euroseas president and CEO Aristides Pittas. “The new charters secure a minimum of $85 million in contracted revenue and are expected to make an annualized EBITDA contribution in excess of $22.3 million combined, which is about $19 million (or at least seven times) more than their combined contribution over the last twelve months of about $3 million. These new charters significantly improve both our profitability and cash flow visibility, as our charter coverage for 2022 now exceeds 85% and for 2023 55%.”
“Undoubtedly, the containership markets continue to show strength and momentum, as indicated by the rate and duration of the above charters. We expect to be able to continue to benefit from the current strong market, as there are two more of our vessels due for re-charter in the next four months and, in addition, two more vessels later in 2022,” Pittas added. “In addition, we have started exploring chartering options for our two new vessels, which are scheduled for delivery by the end of the first and second quarter of 2023, respectively, as initially planned. If current market levels are maintained, the expiring charter renewals should result in further significant increases in our profitability and employment coverage for the following years, providing a solid liquidity base for further growth of our business and rewards to our shareholders as deemed appropriate by our Board of Directors.”
These latest contracts add to a growing list of recent Euroseas charters at rates unheard of before the pandemic, including a two- to three-month charter for its panamax vessel MV Synergy Oakland at a rate of $130,000 per day, announced last September. The same vessel has also closed a two-month charter for a staggering $200,000 per day in November. The latter will be followed by a $42,000/day charter for a period of 48 to 51 months.