Euroseas Locks In Profitable Charter For New Fuel-Efficient Feeder Vessel

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  • Euroseas announced a time charter contract for their new 1,800 TEU feeder containership, M/V Pepi Star.
  • The charter will be for a minimum of 23 months to a maximum of 25 months at a rate of $24,250 per day.
  • The vessel is expected to be delivered in July 2024.
  • This rate is 10% higher than their recent fixture for a sister vessel.
  • Euroseas considers this a positive sign for the containership charter market.

Euroseas Ltd., a container vessel operator, announced securing a time charter contract for its new ship, M/V Pepi Star.The 1,800 TEU feeder vessel, currently under construction, is the last of three similar units Euroseas commissioned.

Details

  • Charter period: Minimum 23 months, maximum 25 months (option for charterer)
  • Daily rate: $24,250
  • Commencement: Upon vessel delivery from shipyard (estimated July 19, 2024)
  • Counterparty: Top-tier liner company

Financial Highlights

  • This charter secures an estimated $12.3 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) for the minimum term.
  • The rate reflects a 10% increase compared to a recent charter for a sister vessel, indicating a strengthening containership charter market.
  • This fixture increases Euroseas’ 2024 charter coverage to 91%.

The press release also details Euroseas’ current fleet profile, including existing vessels and those under construction.

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Source: Euroseas