Company: CMRE-PC
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001140361-25-005199
Chunk: 7

Company: Costamare Inc.
Filing Date: 2025-02-20
Form: 20-F
Item: Item 3
Chunk 7
---
 or injury to persons, loss of property or environmental damage, delays in the delivery of cargo, loss of revenues from or termination of charter contracts, governmental fines, penalties or restrictions on conducting business, litigation with our employees, customers or third parties, higher insurance rates, and damage to our reputation and customer relationships generally. Although we maintain hull and machinery and war risks insurance, as well as protection and indemnity insurance, which may cover certain risks of loss resulting from such occurrences, our insurance coverage may be subject to caps or not cover such losses, and any of these circumstances or events could increase our costs and lower our revenues. The involvement of our vessels in an environmental disaster may harm our reputation as a safe and reliable vessel owner and operator. Any of these results could have a material adverse effect on business, results of operations and financial condition, as well as our cash flows, including cash available for dividends to our stockholders.
 
The market value of our vessels can fluctuate substantially over time, and if these values are low at a time when we are attempting to dispose of a vessel, we could incur a loss, which would adversely affect our financial condition and could impair our ability to pay dividends.
 
Containership and dry bulk vessel values can fluctuate substantially over time due to a number of different factors, including:
 

•   prevailing economic conditions in the markets in which our vessels operate;
-------------------------------------------------------------------------------

•   reduced demand for containerships or dry bulk vessels, including as a result of a substantial or extended decline in world trade;
-------------------------------------------------------------------------------------------------------------------------------------

•   increases in the supply of vessel capacity;
-----------------------------------------------

•   changes in prevailing charter hire rates;
---------------------------------------------

•   the physical condition, size, age and technical specification of the ships;
-------------------------------------------------------------------------------

•   the costs of building new vessels;
--------------------------------------

•   changes in technology which can render older vessels obsolete;
------------------------------------------------------------------

•   the relative environmental efficiency of the vessel, as compared to others in the markets in which our vessels operate;
---------------------------------------------------------------------------------------------------------------------------

•   whether the vessel is equipped with an exhaust gas scrubber or not; and
---------------------------------------------------------------------------

•   the cost of retrofitting or modifying existing ships to respond to technological advances in vessel design or equipment, changes in applicable environmental or other regulations or standards, customer requirements or otherwise.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
The risk of realizing a loss on the sale of a vessel is greater during periods when vessel values are low compared to their historical levels. In the