EuroDry Ltd. (NASDAQ: EDRY) has signed a contract with Hengli Shipbuilding (Dalian) for the construction of a third 82,000 deadweight ton Kamsarmax bulk carrier, according to a company statement.

The vessel will be built to an eco-design specification compliant with EEDI Phase 3 standards and is scheduled for delivery in the third quarter of 2029. The contract is valued at approximately $37.0 million and will be financed through a combination of debt and equity. The agreement is conditional upon EuroDry receiving a refund guarantee from a bank acceptable to the company.

Aristides Pittas, Chairman and CEO of EuroDry, said: "This order brings our newbuilding program to five vessels, lowering the average age of our fleet and positioning us competitively in a market environment that increasingly values fuel efficient and environmentally friendly vessels."

The new vessel, named Konstantina TZ, brings EuroDry's total newbuilding program to five ships with a combined capacity of 373,000 dwt. The other vessels under construction include two Ultramax carriers scheduled for delivery in 2027 and two additional Kamsarmax carriers due in 2028.

EuroDry currently operates a fleet of 11 drybulk vessels with a total cargo capacity of 766,420 dwt, comprising three Panamax, five Ultramax, two Kamsarmax, and one Supramax carrier. Upon completion of all five newbuilds, the fleet is expected to grow to 16 vessels with a total carrying capacity of 1,139,420 dwt.