Company: CMRE-PC
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001140361-25-005199
Chunk: 4

Company: Costamare Inc.
Filing Date: 2025-02-20
Form: 20-F
Item: Item 3
Chunk 4
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ers expire or when we are otherwise seeking new charters, we may be forced to charter our vessels at reduced or even unprofitable rates, or we may not be able to charter them at all and/or we may be forced to scrap them, which may reduce or eliminate our earnings or make our earnings volatile.
 
During the year ended December 31, 2024, the Containership Timecharter Rate Index (a per TEU weighted average of six to twelve month time charter rates of 1,000 to 5,000 TEU vessels, and three year time charter rates of 6,800 TEU to 9,000 TEU vessels that is published in the Container Intelligence Monthly, calculated on a monthly basis by Clarksons Research Services Limited (“Clarksons Research”) (based on $/TEU for 1993=100)) increased by 163%, from 67.4 points in December 2023 to 176.9 points in December 2024. The increase in charter rates is mainly attributable to a 5.4% increase in the volume of containers transported due to increased demand and a respective increase of 17.7% in TEU-miles mainly due to container vessels rerouting around southern Africa to avoid the Suez Canal. Although charter rates increased this year, charter rates have decreased before. For example, during the year ended December 31, 2023, the Containership Timecharter Rate Index decreased by 36.3% on average due to the decrease of seaborne transported container volumes and the normalization of seaborne supply chains. Weak or volatile conditions in the containership sector may affect our ability to generate cash flows and maintain liquidity, as well as adversely affect our ability to obtain financing.
 

According to Clarksons Research, seaborne container trade (in terms of million TEU transported) grew by a compound annual growth rate of 2.6% per annum between 2015 (167.8 million TEU transported) and 2024 (211.6 million TEU transported). During this period, there have been two years, 2020 and 2022, at which seaborne container trade exhibited negative growth rates. More specifically, during 2020, volumes decreased by 1.6% due to the outbreak of COVID-19 and the respective supply chain inefficiencies it caused, whereas in 2022, volumes decreased by 3.6% following an increase of 6.4% in the previous year. Clark