Euroseas gets juicy fixture for newbuilding in rising box market

Euroseas boxship owner, listed on the American stock market, led by Aristides Pittas has sealed a time charter contract for a newbuild feeder containership.

The time charter contract was signed for the newbuild 1,800 teu feeder containership Monica currently under construction, for a minimum period of 10 to a maximum period of 12 months at the option of the charterer.

The vessel will be hired at a gross daily rate of $16,000. The Nasdaq-listed owner revealed last week that the new charter will commence upon delivery of the vessel from the shipyard, which is expected around mid-May 2024.

The acquisition was financed with a combination of own funds and a $22.5m loan provided by the National Bank of Fujairah.

The same financing is secured for the sister ship Stefania K, which is expected to be delivered in mid June.

Aristides Pittas, chairman and chief executive of Euroseas, said: “We are pleased to announce that we have chartered our upcoming newbuilding vessel, the fifth in a series of nine and first of our three 1,800 teu units, with one of the largest liner companies, at a profitable rate level of $16,000/day.

“This charter is expected to contribute about $2.7 million of EBITDA for the minimum contracted period; it increases our 2024 charter coverage to over 85%.

“We are also pleased to have started a cooperation with the National Bank of Fujairah, as part of our strategy of diversifying our debt financing sources and expanding our relationships with commercial shipping lenders worldwide; and, finally, we are grateful for the advice we received from Alantra DIFC in arranging this financing.”

Bilal Hasan Ashraf, head, energy & marine and government and large corporate, Fujairah – National Bank of Fujairah PJSC, noted: “We are excited to support the charter of Euroseas new fuel-efficient container ships through our sustainability linked loan.

“This innovative partnership not only demonstrates our commitment to promote sustainable practices in the maritime industry but also showcases our dedication to support businesses that prioritize environmental stewardship.

“By investing in cleaner and more efficient vessels, we are proud to contribute to a greener future for the shipping industry and the planet as a whole.”

Nicholas Petrakakos, partner & MD at Alantra DIFC, pointed out: “We are pleased to have advised Euroseas in this milestone sustainability linked financing facility with National Bank of Fujairah, for two state of the art containerships MV Monica and MV Stephania K.

“Our maritime & offshore team strives to deliver innovative solutions to our clients, and this transaction is a testament of our commitment, bringing together a prominent Greek owner and the most sophisticated UAE based shipping bank.”

The shipowner, after the delivery of the vessel Monica, will have a fleet 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.