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Athens-based Euroseas Ltd. (NASDAQ: ESEA) say it has entered into a new record-setting time charter contract for its 2009-built panamax capacity MV Synergy Oakland for a mind-boggling $200,000 per day rate.
The minimum two-month (60 day) contract is expected to commence in the second half of October when the 4,250 TEU capacity vessel is redelivered from its current charter. The charter also includes options to extend to up to 85 days.
Euroseas reports the contract has a gross daily rate of $202,000, or $195,000, depending on where the vessel will be delivered to the charterer. The company said the charter is the highest time charter rate ever achieved by Euroseas, and perhaps even by the liner industry at large.
The staggering rate underscores the current strength of the container shipping market which has contributed to record profits for liners in recent quarters. You may recall, panamax containerships, which can carry between 3,000 to 5,000 twenty-foot equivalent containers, nearly became obsolete in 2016 amid a prolonged market downturn in the sector that coincided with the opening of the Expanded Panama Canal. In late 2016, a 2009-built 4,250 TEU panamax ship belonging to now-defunct Rickmers Maritime became the youngest containership ever sold for scrap at just seven years of age.
To think that a 12-year-old panamax (which also happened to be built in 2009) has now been chartered for 200K per day is just mind blowing.
“We are pleased to announce the new charter for M/V Synergy Oakland for about two to three months at a daily rate of about $200,000 per day. This is the highest time charter rate ever achieved by any vessel in our fleet and one of the highest rates ever achieved in our industry,” says Aristides Pittas, Chairman and CEO of Euroseas.
“This new charter secures a minimum of $12m of contracted revenue over two months and, possibly, up to $17m if the maximum period of the charter is chosen by the charterer. At the same time, Euroseas is well positioned to take advantage of a further rising market with five ships, including M/V Synergy Oakland after the expiration of its new charter, opening in the next six months,” explains Pittas.
Euroseas was formed in 2005 and currently owns a fleet of 15 containerships comprising 10 feeders and five intermediate containerships representing a cargo capacity of 44,021 TEU. It also expects delivery of another two newbuild feeder containerships in the first half of 2023.
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