Euroseas Orders New Bulk Carriers from Yangzijiang

82,000 dwt bulk carrier, image: Hyundai-Vinashin

Euroseas, the Athens-based owner/operator of dry bulk and container vessels placed a newbuild order today for two 82,000 dwt Kamsarmax bulk carriers from Jiangsu Yangzijiang Shipbuilding Co for approximately USD $60 million.  In addition, Euroseas’ private investment joint venture “Euromar LLC” has purchased the M/V Akinada Bridge, a 2001-built, 5,600 teu gearless containership, along with an above-market time charter.

Euroseas notes the two newbuildings are scheduled for delivery in Q4 2015 and Q4 2016, respectively, and increases their total newbuilding orderbook to 4 vessels.

Aristides Pittas, Chairman and CEO of Euroseas commented:

“We believe we are at the start of a strong year for the drybulk market and are positioning Euroseas to take advantage of an improving market.”

We are also very pleased to announce that our Joint venture has concluded the purchase and has already taken delivery of M/V Akinada Bridge. With containership prices close to their all time lows and secured income for the vessel for the next 2.5 years this investment has little if no downside and can prove very profitable in a recovering market. Euromar is well capitalized and with its 11-vessel strong fleet ready to take advantage of a recovery in the Container market which is bound to occur sooner or later. “

The billion dollar question however is, do the fundamentals of the dry bulk market present a strong enough case to order more ships?

“Expectations for earnings growth and a commodity boom are over,” noted Kazuhisa Mori, an analyst with JP Morgan Chase & Co. in a Bloomberg report yesterday.  Mori was referring to $3 billion in expected stock buy-backs this year by Japanese trading houses, Mitsubishi Corp. and Mitsui & Co.

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