Euroseas – Fares are four times higher now

Freight rates for container vessels are at record levels, a trend that is expected to continue for the next one to two years, according to representatives of shipping companies in the industry. However, an indicative fact of what is happening at the moment in the container transport industry is the charter of the container vessel M / V “Diamantis P” of Euroseas. The ship with a capacity of 2,008 teu and built in 1998 was chartered from next October for a period of 36-40 months with an average daily fare of $ 27,000 which is more than four times higher than fares up to now.

Euroseas Ltd, the shipping company of Aristides Pittas listed on NASDAQ, announced for the second quarter of 2021 total revenues of $ 18.3 million, increased by 35.4% compared to the corresponding period of 2020 and net profits of 7.9 million $ against $ 1.3 million in profit for the same period last year.

Adjusted EBITDA increased to $ 10.3 million from $ 4.4 million in the second quarter of 2020.

Mr. Aristides Pittas in his statements noted, among other things, that the container ship industry continues to move in relation to fares at record levels and estimated that this will continue as apart from the short-term effects due to the pandemic, demand is expected to continue in high and after the return of normalcy to the economies. According to Mr. Pittas, the strong demand for tonnage for the next two to five years is fueled by the expectations that the tonnage of the ships will be in deficit in the coming years. The new requirements of environmental legislation from 2023 will also play a role in this development.

As the container industry maintains its current levels or even increases its performance, we expect our profitability to increase, by 2023, he added, adding that opportunities for new markets in the feeder segment are being considered.

Tassos Aslidis, Financial Director of Euroseas commented, among other things, that the results of the second quarter of 2021 reflect the increased fares earned by the company’s ships due to the significant market recovery compared to the same period in 2020, despite the reduction in the number of ships in the second quarter of 2021 to 14, from 19 ships operating in the same period last year.