A spot charter is a contract to carry a specific cargo for a single trip. Spot charters can be spot voyage charters or spot time charters. Under spot voyage charters, Euroseas is paid on a per ton of cargo carried basis and pays voyage expenses such as port, canal and fuel costs. A time charter is a contract to charter a vessel for an agreed period of time at a set daily rate. Under time charters, the charterer pays these voyage expenses. A spot time charter is for a single voyage, while a period time charter is one under which the vessel is chartered for a period of time. A pool charter is essentially a time charter with a floating charter rate. The actual charter hire the pool vessel receives is its corresponding share of all the income generated by all vessels that participate in the pool. A short fund comprises of one or more contracts of affreightment ("COA"). These are contracts secured by the pool manager for carrying some specific types and quantities of cargo over a fixed time horizon at a fixed rate per ton of cargo carried. The combined effect of having a vessel in a spot pool and securing COA's can be equivalent to establishing a long term time charter.
Under all types of charters, Euroseas will pay for vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs. Euroseas is also responsible for each vessel's intermediate drydocking and special survey costs.
Vessels operating on time charter provide more predictable cash flows, but can yield lower profit margins than vessels operating in the spot market during periods characterized by favorable market conditions. Vessels operating in the spot market generate revenues that are less predictable but may enable Euroseas to increase profit margins during periods of improvements in drybulk rates. However, Euroseas would then be exposed to the risk of declining market charter rates, which may be higher or lower than the rates at which Euroseas chartered its vessels. Euroseas is constantly evaluating opportunities for time charters, but only expects to enter into additional time charters if Euroseas can obtain contract terms that satisfy its criteria.
|Name||Type||Dwt||TEU||Year Built||Employment||TCE Rate ($/day)|
|AKINADA BRIDGE||Intermediate||71,366||5,610||2001||TC 'til Feb-20||$16,500|
|SYNERGY BUSAN||Intermediate||50,726||4,253||2009||TC 'til Mar-20||$13,250|
|SYNERGY ANTWERP||Intermediate||50,726||4,253||2008||TC 'til May-20||CONTEX 4250 less 6.25%; floor $8,000 / ceiling $16,000|
|SYNERGY OAKLAND||Intermediate||50,787||4,253||2009||TC 'til Oct-20 plus 8-12 months extension option||$9,000 'til Feb-20; $10,000 'til Oct-20; option CONTEX 4250 less 10%|
|SYNERGY KEELUNG||Intermediate||50,969||4,253||2009||TC 'til Dec-20/Jun-22 plus 8-12 months option||$10,000 'til Jun-21; $11,750 'til Jun-22; option $14,500|
|EM KEA||Feeder||42,165||3,100||2007||TC 'til Mar-20||$9,700|
|EM ASTORIA||Feeder||35,600||2,788||2004||TC 'til Feb-20||$8,500|
|EVRIDIKI G||Feeder||34,677||2,556||2001||TC 'til Sep-20||$10,250|
|EM CORFU||Feeder||34,654||2,556||2001||TC 'til Sep-21||$10,200|
|EM ATHENS||Feeder||32,350||2,506||2000||TC 'til Jan-20||$8,500|
|EM OINOUSSES||Feeder||32,350||2,506||2000||TC 'til Dec-19||$8,700 & a Ballast Bonus of $60K|
|DIAMANTIS P||Feeder||30,360||2,008||1998||TC 'til Jul-20||$8,000|
|EM SPETSES||Feeder||23,224||1,740||2007||TC 'til Feb-20||$7,000|
|EM HYDRA||Feeder||23,351||1,740||2005||TC 'til Mar-20||$7,500|
|JOANNA||Feeder||22,301||1,732||1999||TC 'til Feb-20||$6,650|
|MANOLIS P||Feeder||20,346||1,452||1995||TC 'til Mar-20||$6,800|
|AEGEAN EXPRESS||Feeder||18,581||1,439||1997||TC 'til Mar-20||$7,500|
|KUO HSIUNG||Feeder||18,154||1,169||1993||TC 'til Feb-20||$7,500|
|NINOS||Feeder||18,253||1,169||1990||TC 'til Feb-20||$7,750|
|Fleet Grand Total||19||660,940||51,083||17.5 yrs|
Note: Charter duration indicates the earliest redelivery date unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (***). Generally, charterers have a range of 15 days to 3 of months to redeliver the vessels depending on the length of the charter.