Nasdaq-listed Euroseas has stretched its term charter cover for three boxships at decade-high rates as chief executive Aristides Pittas built his stake in the company.
Deals for the trio show how strongly rates have risen in the containership sector as demand rebounds following earlier pandemic lockdowns.
The 2,556-teu Evridiki G (built 2001) was fixed for between 12 and 13 months at a daily rate of $15,500, starting this month.
The ship had previously been chartered for just $8,250.
The 1,439-teu Aegean Express (built 1997) was booked for between 15 and 16 months at $11,500, against $5,900 beforehand.
Athens-based Euroseas also said the 2,778-teu EM Astoria (built 2004) had a deal extended for between a year and 14 months at $18,650 per day. The deal had previously paid $8,500 per day
Charterers were not revealed.
Ebitda set to soar
Chief executive Aristides Pittas said the deals will add Ebitda of $7.5m during 2021, four times the level over the last year.
"Both the rate of the charters – which is near the highest levels of the last ten years – and the duration of the contracts are indicative of the strength of the market during the recent months," he added.
"If the present market levels continue and we are able to renew or replace the charters of the remaining of our vessels, as they expire, at similar levels, we should see a significant contribution to our earnings and profitability."
Pittas said that while geopolitical and economic still abound, the company is optimistic that the demand-supply balance in the containership market over the next couple of years will be supportive of strong charter rates.
Confidence shown
This is based on a very low newbuilding orderbook, the smallest for more than 20 years, as well as healthy growth of trade as the coronavirus is brought under control.
Pittas' private Colby Trading has converted the remaining $1.875m of a loan provided to the company in 2019 into 702,000 Euroseas shares.
His stake has not been specified, but the Pittas family controls Euroseas.
The CEO said the move was indicative of increased confidence in the prospects of the market and the company.
Euroseas has a fleet of 14 vessels, comprising nine feeder containerships and five intermediate container carriers.
