Costamare cautious on Red Sea reopening as revenues hit US$2Bn 

Despite this uncertainty, the company navigated 2024 with strong profitability, while securing a high level of charter coverage for its fleet.

In its Q4 earnings report, Costamare chief financial officer, Gregory Zikos, highlighted that the ongoing Red Sea crisis, combined with strong cargo demand, has effectively absorbed additional newbuilding capacity in the container vessel sector. However, he noted if liners gradually return to the Suez route, the release of tonnage, coupled with incoming newbuilding capacity, “could potentially distort the current supply and demand dynamics.”

Despite this and amid a favourable market environment, the US-listed shipowner has forward-fixed 12 container vessels for periods ranging from 16 to 38 months, generating additional revenues of US$333M since its Q3 earnings release last November. As a result, Costamare has secured 96% and 69% of its container fleet for 2025 and 2026, respectively. The company’s total contracted revenues amount to approximately US$2.4Bn, with a TEU-weighted duration of 3.4 years.

Active in the dry bulk market

Costamare has also been active in the dry bulk sector. The Greece-based shipping company recently acquired one Capesize and two Ultramax vessels while finalising the sale of a Handysize vessel and agreeing to divest a Panamax ship built in 2008. Additionally, since its Q3 2024 earnings release, Costamare has entered into more than 50 chartering agreements for its owned dry bulk fleet.

Commenting on the current soft charter market, Mr Zikos noted, “Charter rates dropped to their lowest levels of 2024 during the last quarter and have started 2025 on a similarly soft note. The easing of congestion, pressures in the Chinese steel market, and declining grain tonne-mile demand have resulted in tonnage oversupply.”

As for Costamare Bulkers (CBI), the company’s dry bulk operating platform, it currently has fixed a fleet of 51 dry bulk vessels on period charters, including 36 Newcastlemax/Capesize ships and 15 Kamsarmaxes.

Revenues surge to US$2.0Bn

Costamare achieved strong financial performance in 2024, fuelled by a healthy container vessel market.

Total voyage revenues increased by 37% year-over-year, reaching US$2.0Bn in 2024, up from US$1.5Bn in 2023. This growth was primarily driven by improved charter rates across certain owned container and dry bulk vessels. During Q4 2024, total voyage revenue reached US$542M, marking an 11% increase compared with US$491M in Q4 2023.

However, net income declined to US$316M for the full year, from US$381M in 2023. In Q4, net income stood at US$32M, a decrease from US$105M in the same period of 2023.

As of 31 December 2024, Costamare’s liquidity remained strong at approximately US$942M. Its fleet comprises 68 container ships with a total capacity of approximately 513,000 TEU, along with 38 bulk carriers totalling 3M dwt.