Greek owner sees value in trading older container vessels

On 3 January, the US-listed shipping company announced its decision to spin off three ageing ships from its fleet into a new entity, Euroholdings, which has applied for a listing on the Nasdaq Capital Market.

The vessels – Aegean Express (built in 1997), Diamantis P (built in 1998), and Joanna (built in 1999) – will be transferred to Euroholdings in exchange for 100% of its shares, which will subsequently be distributed to Euroseas’ shareholders.

High returns and limited risks

Euroseas chairman and chief executive Aristides Pittas believes continuing to trade these older vessels offers considerably more value than selling them in the current market environment, as they can generate higher returns. Despite a surge in newbuilding orders in the container market, many older vessels remain operational, benefiting from favourable market conditions, particularly following the Red Sea crisis.

This trend is exemplified by the recent charter agreement for Aegean Express, Euroseas’ oldest and smallest feeder. The vessel has been fixed for 10-12 months at a rate of US$16,700 per day, a significant increase compared with its previous rate of US$8,000 per day as of December 2024.

Mr Pittas emphasised the operational and market risks associated with older vessels are minimised by the current status of Euroseas’ three ageing ships. They are unleveraged, two are under time charter employment, and all continue to be managed by Euroseas’ affiliate, Eurobulk, which has a proven track record in managing older vessels.

Euroseas’ focus on newbuildings

In addition to its plans for Euroholdings, Euroseas is focused on modernising the rest of its fleet. The company has a newbuilding programme, with four vessels scheduled for delivery between 2025 and 2027.

In its Q3 results announcement, Euroseas disclosed an order for two fuel-efficient, 4,300-TEU container vessels. These ships will be built at Jiangsu Yangzi Xinfu Shipbuilding Co Ltd in China, confirming previous reports from Riviera.