EuroDry announces delivery of ultramax drybulk carrier

Euroseas, listed on the American stock market, owned by Aristides Pittas announced late on Wednesday a long-term charter deal for one of its newbuildings it has under construction.

The employment arranged for up to 25 months from April or May at $20,000 per day with “one of the largest liner companies” for the 2,800-teu feeder containership Leonidas Z, provides further evidence of improving market sentiment for container ships in the wake of the Red Sea disruption.

The time charter deal for a minimum period of 23 to a maximum period of 25 months at the option of the charterer, will commence upon delivery of the vessel from the shipyard.

Pittas said the deal is “at a profitable rate level”, which will deliver about $9m in EBITDA for the minimum contracted period of 23 months.

Aristides Pittas, chairman and chief executive of Euroseas, said: “We are pleased to announce that we have chartered our upcoming newbuilding vessel, the fourth in a series of nine, with one of the largest liner companies, at a profitable rate level of $20,000/day, exploiting the recent strength of the market both in terms of charter level and charter duration.

“This charter is expected to contribute about $9 million of EBITDA for the minimum contracted period; it increases our 2024 charter coverage to about 74%.

“We are hopeful that we will be able to continue capitalizing on the current strength of the market for chartering our few vessels that come open within the next quarter including the three 1,800 teu vessels that will be delivered during this period.”

The shipowner has a fleet of 20 vessels, including 13 feeder and 7 intermediate containerships. Euroseas 20 containerships have a cargo capacity of 61,661 teu.

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