Setting the Sail: Tactical Termination and Rechartering
Greek shipping giant, Euroseas, has made a strategic move by terminating the prevailing charter agreements for the Rena P and Emmanuel P container ships. To maintain the course, the company quickly drew up new charter agreements for these vessels.
The 2007-built Rena P, a 4,250 teu ship, was previously under a charter set to expire in February 2025. This agreement allowed Rena P to earn $20,250 a day until April 2024. Thereafter, earnings would be determined by the ConTex index between the range of $13,000 to $21,000 daily. However, Euroseas has chosen to cut loose from this commitment ahead of its schedule.
Anchoring New Deals: New Charter Terms
The decision coincides with Euroseas’ engagement in a fresh time charter agreement promising a steady gross daily rate of $21,000. This new agreement is contracted for a minimum of 20 months, extending up to a maximum of 24 months. Set to commence in August 2023, it follows the cessation of Rena P’s existing charter agreement.
Additionally, Euroseas also pulled the plug on the current charter of the Emmanuel P, a 4,500 teu ship constructed in 2005. Originally due to expire in March 2025, the agreement provisioned a daily rate of $19,000. However, the recent termination announcement has indeed left the expiring date void.
Charting New Waters: Securing Fresh Charters
The company treaded on to secure an identical agreement for Emmanuel P — a minimum of 20 to a maximum of 24 months time charter at the daily rate of $21,000. Though the immediate charterer in question was not directly divulged by Euroseas, industry sources such as VesselsValue point to ZIM, an Israeli carrier, as the primary hirer.
Aristides Pittas, Euroseas’ chairman and CEO, expressed that these new agreements would bring an additional windfall of $2-4 million in revenues during the same period.
Hoisting Sail: The Ships’ Journey with Euroseas
The Rena P and the Emmanuel P are fresher faces to the Euroseas fleet, having been acquired in the spring of last year for a total cost of $37 million. Known formerly as the Seaspan Melbourne and the Seaspan Manila, the ships have proven to be valuable assets for their new owner’s portfolio. Their proactive rechartering reflects the unique adaptability that Euroseas harnesses in the distinct currents of the shipping industry.
