What about tariffs? In general, too early to tell the impact on shipping.
For Euroseas (ESEA), a small container shipping company, specifically,
- ESEA don’t manufacture or own the products they are delivering
- Don’t think they have a lot of vessels (total fleet around 22-ish vessels) trading US routes.
What’s interesting about ESEA?
- Operate in a niche sector of the container shipping market - smaller size vessels
- Company founders have been in the shipping business a long time. The Pittas family also have a significant stake in ESEA.
- ESEA generates great margins (Q3 2024 50% net margin) and is still forward looking *
- In Nov 2024, ESEA announced charters for a pair of newbuild vessels that deliver in Q1 2025. In addition, when 2025 started, ESEA announced plans to spin-off its three oldest vessels. These are old vessels, and ESEA likely only kept the vessels because the Pittas family are skilled in squeezing money out of old vessels.
No position. But tempted to nibble