Euroseas Fixes Tie Charter Contract for Feeder & Agrees Sale

View of shipping containers on a vessel from the bridge
Updated Published

Euroseas, a Nasdaq-listed Greek shipping company specializing in container ships, has secured a time charter contract for one of its feeder boxships and has agreed to sell another.

The company arranged a time charter for the EM Hydra, a 1,740 TEU feeder boxship, for a period of ten months with an option to extend up to twelve months at the discretion of the charterer. 

This agreement will directly follow the current charter and features a daily rental rate of $13,000. This arrangement is expected to generate approximately $1.5 million in EBITDA for the minimum charter period, boosting Euroseas' charter coverage for 2024 to nearly 85%.

Additionally, Euroseas signed a memorandum of agreement to sell the EM Astoria, a 2,788 TEU feeder container ship built in 2004, for about $10 million. T

his sale comes after the mutual early termination of its current charter, approximately eight months ahead of schedule. The company anticipates a profit of over $5.5 million from the sale and will avoid costs associated with the upcoming special survey of the ship. 

The vessel is slated to be delivered to a new owner, described only as an unaffiliated third party, by the end of June 2024.