Euroseas cashes better rate with newbuild boxship charter deal

Greece’s Euroseas boxship owner, listed on Nasdaq stock market, led by Aristides Pittas has sealed a time charter deal for its third fuel efficient 1,800 teu feeder containership newbuilding, Pepi Star, at a better rate compared to the fixture of its sister vessel, Stephania K, just a week ago.

The Nasdaq-listed owner said the container ship Pepi Star will earn $24,250 per day for a period of two years.

Specifically, the newbuild vessel currently under construction, was chartered for a minimum period of 23 to a maximum period of 25 months at the option of the charterer, at a gross daily rate of $24,250.

The Athens-based company had announced a deal for the sister vessel, Stephania K, at $22,000 just a week ago.

The new charter will start upon delivery of the vessel from the shipyard expected to take place on or about July 19, 2024.

As it is revealed by the company, the acquisition was financed with a combination of debt and equity. The shipowner didn’t disclose the name of the charterer but said that it is a ‘top-tier liner company.’

Aristides Pittas, chairman and chief executive of Euroseas, said: “We are pleased to announce that we have chartered our upcoming newbuilding vessel, the seventh in a series of nine and last of our three 1,800 teu units, with a top-tier liner company, at a profitable rate level of $24,250/day for a period of two years.

“This rate represents a 10% increase compared to our fixture of its sister vessel, M/V 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.

“The present charter is expected to contribute about $12.3 million of EBITDA for the minimum contracted period; it increases our remaining 2024 charter coverage to 91%.”

The Greek shipowner has currently a fleet portfolio of 22 vessels, including 15 feeder containerships and 7 intermediate containerships with a cargo capacity of 66,261 teu.

After the delivery of its four remaining feeder containership newbuildings in 2024, Euroseas’ fleet will consist of 26 vessels with a total carrying capacity of 75,461 teu.