Lower Charter Rates Lead Box Ships to Net Loss

Athens-based container shipping company Box Ships has reported a net loss during the third quarter of 2015 at USD 0.8 million, compared to a net income of USD 5.6 million during the corresponding period in 2014.

The company’s results were influenced by decreased charter rates, as well as by a rise in its idle fleet.

During the third quarter of 2015 and 2014, Box Ships’ vessels operated a total of 806 and 827 days, respectively, out of a total of 828 calendar days in both periods.

In the third quarter of 2015, the company’s fleet had a total of thirteen unscheduled off-hire days, mainly related to nine idle days of Box Trader, and nine scheduled off-hire days related to the dry-docking of Box China.

“During the third quarter of 2015, the charter rates declined, taking back a large part of the increase witnessed during the first half of the year. Since the end of the third quarter of 2015, charter rates have dropped further. This has been exemplified in our recent fixtures of Box Marlin and Box Queen at USD 6,500 per day and $6,150 per day, respectively, which are at levels significantly lower than their previous charters.

“In addition to that, the idle fleet capacity has increased considerably, compared to around 1%-2% earlier in the year,” Michael Bodouroglou, Chairman, President, Chief Executive Officer and Interim Chief Financial Officer of Box Ships, said.

Box Ships’ recorded an EBITDA of USD 4.4 million for the third quarter of 2015, compared to last year’s EBITDA of USD 11.2 million.

The company’s net revenues for the third quarter of 2015 of USD 11.4 million were relatively unchanged year over year compared to USD 11.5 million in the third quarter of 2014.

“Given the current market environment, we are mainly focused in maintaining a high level of fleet utilization, by chartering our vessels with quality counterparties, while at the same time further reducing our costs. Indicatively, our adjusted total vessel operating expenses for the nine months ended September 30, 2015 were about 9% lower than the respective period in 2014,” Bodouroglou said. 

The company chartered three of its vessels during the third quarter period.

The Box Trader entered into a time charter with Gold Star Line Ltd., in October for a period of 60 to 180 days at a daily gross charter rate of USD 7,500 for the first 90 days and USD 8,500 for the remaining period. In November 2015, the Box Marlin entered into a time charter with CMA CGM for a period of two to eight months at a daily gross charter rate of USD 6,500. In December 2015, the Box Queen entered into a time charter with CMA CGM for a period of 100 to 310 days at a daily gross charter rate of USD 6,150.