US-proposed port fees could 'fundamentally' reshape global trade, says Euroseas' Pittas

"The elevated geopolitical uncertainty is further augmented by the actions of the new US administration," said Euroseas chairman and chief executive, Mr Pittas, while presenting the company’s Q4 earnings results.

He noted the United States has already introduced, or is in the process of introducing, tariffs on imports from several trading partners. Also, discussions have emerged regarding potential fees on Chinese-built and operated ships calling at US ports.

While we believe it will be difficult for these measures to pass, at least in their currently envisaged form, if implemented, they could fundamentally change trade in terms of both volume and pattern, Mr Pittas emphasised.

However, the owner added that shipping thrives on uncertainty and inefficiency.

Firm market conditions

Discussing the container vessel market, Mr Pittas highlighted a firm charter environment in early 2025, with rising rates across feeder and intermediate sectors.

"This strength in rates is evident in our own fixtures, where we managed to book two of our intermediate ships for three-year contracts at highly profitable rates," he added.

Euroseas reported charter coverage of approximately 85% for 2025 and 49% for 2026, ensuring stable revenue visibility.

According to the company’s investor presentation, despite a decline in container freight rates – particularly on the key East-to-Europe route, driven by expectations of resumed Suez Canal transits following a Middle East ceasefire – this shift has not yet translated into the time charter market.

Touching on the Red Sea crisis, the US-listed owner stated uncertainty remains regarding when liners will fully resume Suez Canal transits, with operators maintaining a cautious stance.

Strong financial results

Against this backdrop, Euroseas reported total net revenues of US$213M in 2024, reflecting a 12% increase from US$189M in 2023. However, net income declined slightly (1.5%) to US$113M, down from US$115M in the previous year.

Given Euroseas’ increased liquidity, Mr Pittas announced the board has approved raising the quarterly dividend to US$0.65 per share, while continuing to seek accretive investment opportunities.

As of 27 February, the company repurchased 425,449 common shares from the open market, representing approximately 6% of outstanding shares, for a total of around US$9M. This buyback falls under the US$20M repurchase plan initiated in May 2022.

Spin-off strategy

Furthermore, Euroseas has nearly completed plans to spin off three ageing vessels into a separate entity, Euroholdings.

The company noted share distribution will occur upon approval of the registration statement and final NASDAQ listing confirmation on 17 March. Euroseas shareholders of record as of 7 March are expected to receive one Euroholdings share for every 2.5 Euroseas shares owned.

In the meantime, one of the three ships, 1998-built Diamantis P, was divested to a third party, leaving Euroholdings with 1999-built Joanna and 1997-built Aegean Express.

Following the spin-off, Euroseas will operate a fleet of 22 vessels, comprising 15 feeder container ships, seven intermediate container ships, and two newbuilds.