Euroseas Enters Time Charter Contract for Newbuild Feeder

A cargo ship sailing near the coastline at dusk
Updated Published

The Nasdaq-listed Greek boxship owner, Euroseas, has secured a time charter contract for a new feeder container ship that is currently being built.

Euroseas has arranged a charter for the 1,800 TEU vessel Pepi Star, set for a period ranging from a minimum of 23 months to a maximum of 25 months, at the discretion of the charterer, with a gross daily rate of $24,500.

This new charter with an undisclosed client will commence around June 19, 2024, following the vessel's delivery from the shipyard.

The company anticipates that this charter will contribute approximately $12.3 million to its EBITDA for the minimum contracted period. Additionally, it increases Euroseas’ 2024 charter coverage to around 91%.

“This rate represents a 10% increase compared to our fixture of its sister vessel, Stephania K, at $22,000 just a week ago, a clear indication of the continuously strengthening rates of the containership charter market during the last months,” commented Aristides Pittas, chairman and CEO of Euroseas.

The Greek company operates a fleet of 22 vessels currently in service, with an additional four under construction, the last of which is expected to be delivered in the fourth quarter of 2024.