Euroseas announces US$85 million order of two new boxships

The Greek vessel owner Euroseas has chosen to exercise its option to proceed with the construction of two additional eco design fuel efficient container ships.

According to the company, each boxship will have a capacity of about 2,800 TEU and both will be built at Hyundai Mipo Dockyard Co. in South Korea.

The delivery of the newbuildings is expected to take place in the fourth quarter of 2024.

The total cost of the container ships will be approximately US$86 million and will be financed with a combination of debt and equity.

In addition, they are sisterships of four other vessels ordered by Euroseas in June 2021 and in January 2022.

The company has also ordered three 1,800 TEU vessels at the same shipyard.

In the meantime, Euroseas announced that it intends to upgrade the engines of all six vessels with a capacity of 2,800 TEU that it has ordered, to Tier III type (from Tier II). The Tier III engine achieves lower NOx emissions. The total additional cost for the upgrade of all ships is about US$11 million. The three 1,800 TEU ships were ordered with Tier III engines and are ready for LNG.

Aristides Pittas, chairman and CEO of Euroseas, commented “we are pleased to announce the ordering of two additional modern eco-design 2,800 TEU vessels in one of the top quality shipbuilders in the world.”

“The current contracts along with the orders we placed previously bring our newbuilding program to nine vessels and solidify our presence in the large feeder containership sector. It further highlights our commitment for an environmentally friendly fleet,” he added.

Closing his statement, he highlighted that “with our earnings visibility well into 2025, we believe that investing in modern new vessels makes good use of the cash flow that our existing vessels generate and positions Euroseas to benefit from upcoming market developments, especially, as related to new environmental regulations for the benefit of our shareholders.”