In the company’s earnings report chief executive Michael Bodouroglou argued that there is an “upward trend” in day rates across the board.
He also said the total number of idle containerships “remains at very low levels” and noted newbuilding slots are, for the most part, spoken for until 2017.
“We believe, there are, therefore, several economic factors pointing towards a further rebound in the market that should help increase asset values and improve charter rates further,” he continued.
Bodouroglou argued that this forecast is supported by a recent fixture involving the 5,060-teu MSC Emma (built 2004), which was chartered to CMA CGM of France for 12 months at a rate of $13,500 per day.
Previously, the same vessel was raking in $9,450 per day on the heels of a nine-month extension with the Mediterranean Shipping Company.
“The company has set the groundwork to benefit from these improved market conditions and approaches 2015 with cautious optimism," Bodouroglou continued.
Today, Box Ships turned in a fourth-quarter deficit of $330,000, versus a gain of $3m in the same stretch of 2013, as time charter revenues from its fleet of nine containerships fell to $12m from $17.2m year-on-year.
Going forward, Bodouroglou acknowledged that charters involving two of its vessels, the 5,344-teu OOCL Hong Kong (built 1995) and OOCL China (built 1996), are scheduled to expire in the second quarter of 2015.
He reminded investors that this is also when a loan secured by the same containerships is scheduled to mature. In addition to a final installment the owner is on the hook for a $10m balloon payment.
The executive said the decision about whether to seek charter extensions and refinance debt will depend on what he described as “prevailing market conditions”.
While the operator has no borrowing capacity under existing loan facilities it is confident that existing reserves and future revenues “will be sufficient” to keep the lights on for 12 more months provided lenders don’t accelerate its debt.
Box Ships generated a $2.6m profit in 2014, which is well below the $15.3m gain reported at the end of 2013.
As of 31 December outstanding indebtedness stood at $135m, of which approximately $21.5m is scheduled to be repaid within the next 12 months, according to today's earnings report.
