Another positive charter. Yesterday, a new charter on the Hydra, a 2005-built 1,740 TEU feeder vessel, was announced. The Hydra will be charter for at least 23 months and as long as 25 months at a TCE rate of $20.0k/day, or well above the current TCE rate of $7.2k/day. The new rate will kick in by the end of May once the Hydra is redelivered from the current charterer.Fine-tuning 2021 EBITDA estimate to reflect new charter. To reflect the positive impact of the Hydra charter, we are moving 2021 EBITDA to $37.5 million based on TCE rates of $16.2k/day from $35.4 million based on TCE rates of $15.8k/day.Solid contract cover and upside potential with other contracts are set to renew at higher rates. The Hydra charter increased the forward cover to 84% of 2021 available days booked at average rates of $14.9k/day, up from 79% of 2021 available days booked at average rates of ~$14.6k/day. Since the container market has been stronger than expected, there is still some upside potential to our current 2021 EBITDA estimate. Marking up all of the remaining 500 open available days by $5.0k/day represents upside in the $3.0 million range, or close to ~4% of our revised 2021 EBITDA estimate.Favorable container market thesis intact. Container supply/demand fundamentals appear favorable. More charters have been signed with longer terms and at higher TCE rates, and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to shipyard restrictions, regulatory uncertainty and declining capital availability, while demand should rebound on the back of unprecedented global stimulus and solid secular trends. As a result, demand growth could outstrip supply growth this year.Maintain Market Perform rating due to strong stock price performance. The container market was soft entering 2H2020, but container TCE rates firmed and have moved to multi-year highs this year. With TCE rates moving well above 4Q2020 averages, longer-term contracts at multi-year high TCE rates are now more common. While the container market outlook is favorable and new charters have been positive, we believe that the risk/reward profile is balanced after a 206% gain this year. Read More >>