- Euroseas Ltd. Secures New Time Charters for EM Corfu and Evridiki G.
- Euroseas Announces Profitable Charter Extensions for Key Feeder Vessels.
- New Charters Boost Euroseas’ 2025 Charter Coverage to Over 70%.
Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of dry bulk and container-carrying vessels and provider of seaborne transportation for containerized cargoes, today announced that it has entered into new time charter agreements for two of its feeder containerships, EM Corfu and Evridiki G. Built-in 2001, both vessels have capacity of 2,556 TEU, and the new charters are expected to begin immediately following the expiration of their current charters, reports Euroseas.
Charter Details for EM Corfu and Evridiki G
- EM Corfu: Fixed for a minimum of 18 months to a maximum of 20 months, at the charterer’s discretion, with a gross daily rate of $28,000.
- Evridiki G: Fixed for a minimum of 14 months to a maximum of 16 months, at the charterer’s discretion, with a gross daily rate of $29,500 per day.
Both vessels are set to begin their new charters around early to mid-February 2025, with EM Corfu expected to commence in mid-February and Evridiki G in early February.
Euroseas CEO Comments on Strategic Charter Extensions
Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce that our vessels, EM Corfu and Evridiki G, have extended their charter contracts with a top-class charterer for 18-20 months and 14-16 months respectively, at highly profitable rates of $28,000/day/vessel and $29,500/day/vessel, respectively. The rates of these fixtures indicate the continuing need that liner companies have to secure feeder vessels which are likely to be in short supply given the segment’s orderbook and age profile. The specific charters extend to the time of the fifth special survey of the vessels on their 25th birthday, at which time we will assess their economic prospects in connection to the cost of completing their fifth special survey and drydock. Over the minimum contract period, these two vessels are expected to contribute about $20 million of EBITDA, increasing our 2025 charter coverage to over 70% and our charter coverage for 2026 to about 35%.”
Economic Impact and Future Outlook
The two newly entered charters will contribute approximately $20 million of EBITDA during the minimum duration of the contract. These charters also significantly increase Europe’s charter coverage, now over 70% for 2025 and nearly 35% for 2026.
Euroseas will consider the economic viability of the vessels when they complete their fifth special survey and drydocking, which will be roughly within the time the vessels reach their 25-year milestone.
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Source: Euroseas
