Euroseas announces US$200,000 per day charter contract for M/V Synergy Oakland


Greece-based container ship owner, Euroseas has bagged a massive time charter deal for its 4,250 TEU Panamax boxship Synergy Oakland. The name of the client has not yet been disclosed by the container carrier vessels operator and provider of seaborne transportation for containerised cargoes, but the charter duration is for about two to three months at a daily rate of US$202,000 and/or US$195,000, which depends upon the delivery place of the vessel.

The charter for the 2009-built vessel would be starting after October 15 this year, after the vessel is redelivered from its current charterer.

Aristides Pittas, Chairman and CEO of Euroseas said, “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.”

The total worth of this new charter over a period of two months stands at a whopping US$12mn, while it could go up to US$17mn, if the charter period is extended.

“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 US$200,000 per day. This new charter secures a minimum of US$12mn of contracted revenue over two months and, possibly, up to US$17mn 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,” added Pittas.

Significantly, amid the ongoing container crisis and port congestions around the world, for a number of reasons, be it the COVID-19 pandemic, harsh weather conditions, the infamous Suez Canal crisis of March or the surge in consumer buying spree in the holiday season, new records are being registered every day in the sector. In an attempt to tackle the situation, many major retailers in the United States, which include the likes of Ikea, Walmart and Home Depot has began to buy its own containers and charter vessels, taking their ocean supply chain matters in its own hands, while on the other hand, many major bulk carrier owners, especially in Asia has began shipping containers onboard its bulk carriers! 2021 has been, by far the most profitable year for the container shipping industry.

Shipping and trade media reports point that the net profit of container lines for the second quarter of the year (2021) have increased by a whopping 1,200%, reaching about US$28.6bn, with a record profit margin of about 32.17%. Boxship charter rates too, have quintupled, since the 2005 peak, increasing by 128%, with panamax containerships fetching atleast US$110,000 per day, as compared to just US$6,000 a day, during June, 2020.

The most recent weekly report of Alphaliner noted, “The market is still very much two-tier, with short employment being negotiated at stratospheric figures, up to US$200,000 per day for some ships, while the more conventional 24 month and 36 month charters are commanding significantly lower, albeit historically high, rates.”


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