Nasdaq-listed Greek containership owner Euroseas has sealed a new time charter contract for 1999-built 1,732 teu boxship Joanna, reads the company press release.
The new contract, with an unnamed charterer, will commence between April 20 and May 2 for a period 18-21 months at a daily rate of $16,800. The vessel’s current charter is at just $8,050 per day.
Time charter to improve profitability
Aristides Pittas, chairman and CEO of Euroseas, commented: “We are pleased to announce the new charter for our vessel, M/V ‘Joanna‘, for a minimum period of eighteen months at a rate more than twice the level of her existing employment.”
“The new charter will secure a minimum of $9m of contracted revenues and will make an annualized EBITDA contribution of approximately $3.2m. This new charter further improves our profitability and cash flow visibility,” he added.
He further said, “The continuing strength of the containership market has allowed us to renew the charters of seven of our vessels since November of 2020 at rates, generally, more than double of their previous levels. The rate of an additional vessel in our fleet, M/V Synergy Oakland, is linked to a market index and is reset every three months according to market levels. Still, there are four of our vessels with legacy rates that are due to have their charters renewed over the next four months.“
Euroseas owns a fleet of 14 boxships ranging from 1,439 teu to 5,610 teu.
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Source: Euroseas
