- Euroseas Ltd extends the time charter contract of its container vessel, C/V “Akinada Bridge”.
- The new rate is expected to be in motion on October 30th, 2020.
- In addition, the company signed an agreement to sell its other vessel, C/V Ninos for approximately $2.36m gross.
- Euroseas Chairman is optimistic about the charter market recovery but also says that it’s uncertain due to the COVID-19 pandemic.
Euroseas Ltd., an owner, and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes released a press statement regarding one of its container vessels.
Extending charter
The company announced its container vessel, C/V “Akinada Bridge”, with a capacity of about 5,600 teu, has extended her time charter contract for a minimum duration of twelve months and maximum duration of thirteen months and an additional ten to twelve months in charterers option, at a daily rate of $17,250 and $20,000 respectively.
The new rate will commence on October 30th, 2020.
Furthermore, the charterers of C/V Synergy Oakland have declared their option to extend her charter for another 8-12 months at a rate that is determined by the Contex-4,250 Index less than 10%.
This rate will be applied to start October 23rd, 2020.
In addition to the above, the company signed an agreement to sell C/V Ninos, a 1,169 teu vessel, built in 1990 for scrap for approximately $2.36m gross. The vessel is expected to be delivered to the buyer prior to September end.
Fleet growth expected to fall
Aristides Pittas, Chairman and CEO of Euroseas commented,
The strength of the intermediate size containership market has provided us with an opportunity to extend the charter of our C/V Akinada Bridge at a rate that will significantly contribute to our cash flow for the following year.
We are cautiously optimistic about the prospects of the market across all segments as fleet growth over the next couple of years is expected to be low by recent trends.
We are encouraged with the starting recovery of the charter market in late July 2020, but we still believe that the economic uncertainties remain high due to both the possibility of recurrence of the COVID-19 pandemic and the continuing trade tensions between the U.S. and China, which affect the containership market.
Forward-Looking Statement
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.
These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company.
Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission.
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Source: Globe Newswire
