SOFTENING charter rates and drydockings have pushed EuroDry deeper into the red in spite of the company’s larger fleet and higher revenues compared with last year.

However, management is drawing optimism from developments both in dry bulk demand and on the supply side of the industry.

The Nasdaq-listed owner of bulk carriers posted a third-quarter net loss of $5.2m versus a $0.5m loss in the same quarter last year.

Net revenues after commissions increased to $14.7m, from $10m in the same period of 2023.

The result pushed EuroDry’s net loss for the year to date to $7.4m versus a loss of $3.3m in the first nine months of 2023.

With a fleet of 13 bulkers, up from 10 vessels last year, net revenues from the first nine months of this year reached $46.6m, galloping ahead of revenues of $31.7m last year during the same span.

“Demand for vessels has weakened, especially during the second half of the year due partly to the reversal of certain short-term factors like Panama Canal throughput constraints but more importantly due to weak demand from China,” said EuroDry chief executive Aristides Pittas.

Although China’s economic trends were “one of the main challenges” the dry bulk market was facing, Pittas was cautiously optimistic.

“The recent announcement of additional stimulus by China could change the near- and medium-term prospects of the Chinese economy but its final effect remains to be seen,” he said.

“Still, the biggest source of optimism in the market comes from the supply side, which is expected to grow very modestly over the next couple of years.”

Declines in average earnings for kamsarmaxes, panamaxes and ultramaxes continued declining in October and early November, he added.

Greece-based EuroDry said that the results were affected not only by the weakness of the market, but also by drydocks for four of its vessels, two of which were brought forward to coincide with a period of weaker rates.

“With those drydockings completed, our fleet is better positioned to benefit from potential market increases in 2025,” Pittas said.

“At the same time, we continue exploring investment opportunities in secondhand or newbuilding projects, especially, as recent market declines resulted in lower vessel values.”