EUROSEAS, a US-listed owner of small and medium-sized container ships, saw profitability decline for a second consecutive quarter, weighed down by dry dock costs.
The Athens-based company, led by Aristides Pittas, posted net income US$20m in the first quarter, down 30 per cent year on year and its lowest reading since the fourth quarter of 2021.
Total net revenues totalled $46.7 million.
An average of 19.6 vessels were owned and operated during the first quarter of 2024 earning an average time charter equivalent rate of $27,806 per day.
Chairman and CEO of Euroseas, Aristides Pittas, noted that during 2024 and through mid-May of 2024, the containership markets continued their recovery mainly on the back of higher demand for vessels which resulted from longer trade routes.
'The latter resulted when liner companies decided to avoid going through the Red Sea and the Suez Canal in reaction to the attacks on shipping in the area. Rates for vessels similar to our 2,800 TEU newbuildings increased by about 80 per cent since the beginning of the year,??he said.
'Similar rate increases have been registered across most segments. We have been taking advantage of the improved rate environment and concluded charters for two of our newbuildings and extended the charters of certain of our other vessels, typically, at rates higher than the levels we anticipated three months ago.'
Mr Pittas said it's unclear for how long the tense situation in the Red Sea will continue, after which rates might normalize, the market so far this year has been able to absorb the high level of newbuilding deliveries from the high overall vessel orderbook.
'The orderbook is still high by historical standards but it has come down to about 22 per cent as a percentage of the global fleet. For the feeder and intermediate segments, the orderbook is quite low and stands at around 8 per cent as a percentage of the global feeder fleet.
'What is more, over 20 per cent of the capacity of the feeder segment has an age profile older than 20 years; it is, thus, not unlikely at all that the feeder fleet might even decline in the coming years.'
SeaNews Turkey
The Athens-based company, led by Aristides Pittas, posted net income US$20m in the first quarter, down 30 per cent year on year and its lowest reading since the fourth quarter of 2021.
Total net revenues totalled $46.7 million.
An average of 19.6 vessels were owned and operated during the first quarter of 2024 earning an average time charter equivalent rate of $27,806 per day.
Chairman and CEO of Euroseas, Aristides Pittas, noted that during 2024 and through mid-May of 2024, the containership markets continued their recovery mainly on the back of higher demand for vessels which resulted from longer trade routes.
'The latter resulted when liner companies decided to avoid going through the Red Sea and the Suez Canal in reaction to the attacks on shipping in the area. Rates for vessels similar to our 2,800 TEU newbuildings increased by about 80 per cent since the beginning of the year,??he said.
'Similar rate increases have been registered across most segments. We have been taking advantage of the improved rate environment and concluded charters for two of our newbuildings and extended the charters of certain of our other vessels, typically, at rates higher than the levels we anticipated three months ago.'
Mr Pittas said it's unclear for how long the tense situation in the Red Sea will continue, after which rates might normalize, the market so far this year has been able to absorb the high level of newbuilding deliveries from the high overall vessel orderbook.
'The orderbook is still high by historical standards but it has come down to about 22 per cent as a percentage of the global fleet. For the feeder and intermediate segments, the orderbook is quite low and stands at around 8 per cent as a percentage of the global feeder fleet.
'What is more, over 20 per cent of the capacity of the feeder segment has an age profile older than 20 years; it is, thus, not unlikely at all that the feeder fleet might even decline in the coming years.'
SeaNews Turkey