Märkte | Markets Major rate drops for large boxships Container ship owners unable to preserve earlier gains. Demand returns for biggest ships after downward correction. By Michael Hollmann The spring rally in the container ship charter market is fading into memory as the weaker trend, that emerged at the start of May, turned into an avalanche for the biggest gearless vessels down to panamax class during June. The vessel segments covered by the New Contex (1,100–4,250 TEU) suffered a fall in average period rates of almost 5% over the past month whereas in our last issue of HANSA we could still report a circa 3% improvement month-on-month. The drop in the compound index was contained by the relative stability in market rates for gearless 2,700/2,800 TEU vessels, geared 1,700 TEU and geared 1,100 TEU ships all of which were able to limit losses to less than 3.0%. As always, the greatest volatility is in the larger vessel classes due to more limited charter trading liquidity. Both 24-month and 12-month period rates for 4,250 TEU baby panamax vessels were marked down by a whopping 15.0-16.0% by the Con- Tex panel, as charter redeliveries began to outpace fresh fixing activity. However, the sharpest losses were seen in the very large size class of 7,500 to 10,000 TEU. Fixing levels for standard 8,500 TEU class ships nosedived by around 40% to just 10,000 $/ day in early June before rebounding a bit. Apparently the steep downward correction in rate levels sparked fresh appetite among charterers. How can you withstand the temptation if charter tonnage comes so much cheaper that owned vessels at full capital costs? »The bottom is behind us now and currently business gets concluded at around 12,000 $/day or even more if it’s for shorter period,« commented one Hamburg chartering broker. Only backhaul trips from regions like the Mediterranean with a lack of export cargo got covered at levels below ,000 (»Adamastos«), while the »Northern Jupiter« (8,400 TEU) achieved 12,000 $/day, the »Athos« (9,954 TEU) 15,000 $/day for a round voyage and the 10,114 TEU »Express Berlin« 15,000 $/day for a medium period. According to the latest idle and spot vessel count by Alphaliner, effective availability in the 7,500 – 10,000 TEU sector has di- TEU Name dwt Built Type Speed Cons. Charterer Laycan Period Rate ($) FEEDER / HANDY 917 Vega Delta 10802 2006 g’less 18.0 Sea Consortium June 14–21 d Far East or PG? 6500 966 AS Laetitia 11500 2007 geared 18.8 Cosco June 2–3 m Med trade 6200 1036 Aries J. 13200 2011 g’less 18.5 OPDR June 9–12 m Continent / Iberia (ext) € 6900 1095 Marielyst 10744 2010 g’less 18.5 MSC June 15–30 d Continent / Baltic 7800 1118 Max Centaur 13760 2007 geared 19.6 Mariana Express June 2–5 m Intra-Asia (ext) 5900 1740 Hansa Freyburg 23466 2003 geared 21.0 64 + 3.5 Seaboard Marine June 2–4 m USEC / Caribbean (ext) 8000 1740 Viking Eagle 23464 2006 geared 21.0 64 Maersk June 28–84 days Cont / Sweden 6650 1740 Hansa Drakenburg 23464 2007 geared 21.0 64 Goto July 9–12 m China-Japan (ext) 7000 1740 Hansa Offenburg 23314 2011 geared 21.0 64 Adnatco (Abu Dabi) July 2–5 m Persian Gulf (ext) 7500 1756 Nordluchs 23670 2014 g’less 18.5 Boluda Lines June 11–13 m Spain / Canary Islands 10250 1924 Delphis Finland 24750 2016 g’less 18.0 39.2 WEC June 14 d Cont / Baltic trade 10000 SUB-PANAMAX 2524 Cardiff Trader 33570 2003 geared 21.5 83 Hapag-Lloyd July 7–8 m Mexico / WCSA (ext) 10500 2546 Annette-S. 34376 2014 g’less 22.0 HMM July 2–4 m Intra-Asia 8250 2566 Regina Star 34622 2004 geared 21.5 89 Maersk June 12–15 m N. Europe / NCSA (ext) 9750 2758 Cape Moss 41411 2011 geared 22.3 Simatech July 2–3 m Persian Gulf trade (ext) 9000 2782 Aramis 37000 2017 g’less 18.0 44 SITC June 4–8 m Intra-Asia 10700 2824 TRF Kaya 39462 2007 g’less 22.8 109 OOCL June 3–5 m intra-Asia (ext) 9600 3435 Bomar Fulgent 42950 2007 g’less 23.0 108 + 8 Maersk June 3–6 m FE / W.Africa 8500 3500 Nordspring 46269 2007 g’less 23.4 118 Simatech June 4–8 m Pers. Gulf / India 9000 TRADITIONAL PANAMAX AND WIDEBEAM 3963 Northern Decency 48847 2003 g’less 18.0 58 + 5 Cosco June 3–5 m N. Europe / Med 8600 4245 Jack London 50276 2010 g’less 24.5 133 Maersk June 2–5 m Salalah / Persian Gulf 7250 4606 Northern Priority 58400 2009 g’less 24.0 148 + 9 Maersk June 40–45 d transpacific 7250 4664 RHL Calliditas 58014 2013 g’less 22.0 106 + 8 Gold Star Line/ Zim June 3–6 m FE / W.Africa (ext) 11500 4957 Wieland 58000 2014 g’less 22.0 99.5 Maersk July 3–5 m FE / W. Africa 11500 5029 ALM Wodonga 67002 2006 g’less 24.3 150.3 Maersk June 50-120 d FE / PG / Red Sea net 8000 5060 SC Mara 67500 2006 g’less 24.3 150.3 Maersk June 1–4 m Asia / WC Centr. Amer. 7500 5067 Seasmile 56500 2013 g’less 21.0 88 Maersk July 4–6 m FE / WAF (option decl.) 8000 LARGE AND VERY LARGE 5551 Fortunate 68363 1996 g’less 25.6 Maersk July 45–150 days Far East / ? 9000 5986 Dimitris Y. 67515 2000 g’less 22.0 119 Zim July 9–12 m N. Europe / Med (ext) 11000 6750 Northern Magnitude 84920 2003 g’less 25.6 Maersk July 2–4 m Far East / South Africa 12000 8400 Northern Jupiter 107500 2010 g’less 25.3 Hapag-Lloyd July 3–8 m FE-USEC (ext) 12000 8533 Lloyd Parsifal 101570 2005 g’less 24.5 260 Zim July 2.5–8 m FE / USEC or FE / Med? 11000 9954 Athos 118800 2011 g’less 25.7 250 Maersk July 70–90 d Far East / USEC 15000 9954 Adamastos 118800 2010 g’less 25.7 Maersk June 40–50 d trip Med / Far East 9000 10114 Express Berlin 121915 2011 g’less 25.2 Evergreen July 8–11 m Far East / ? 14000 Charter deals June / all information without guarantee 12 HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 7
Märkte | Markets Orders & Sales New Orders Container The situation at the new building market for container vessels remains unchanged. No orders haven been placed in this reporting period. Even though projects in the feeder and the Ultra Large Container Ship segment are under discussion, it does not seem likely that any firm orders will materialize in near future. Secondhand Sales Container The secondhand price increase which was observable in the minished to just one unit. This may even suggest some further potential for recovery. However, there is more tonnage looming in the background that could be activated perhaps within a couple of weeks. This includes five vessels formerly operated by now-defunct Hanjin plus four other idle units in the same size range. On top of that, a number of completed newbuildings are waiting to be delivered and commissioned at Asian shipyards. Large gearless vessels (traditional post-panamaxes) of 5,500 to 7,500 TEU have been dragged into the downward spiral, too, with rates for 6,000– 6,500 TEU class ships dropping from circa 14,000 $/day to 11,000–12,000 $/ day since our last report. Panamax rates slipping faster Traditional panamax vessels are also among those that are taking the brunt of the market’s fall, with spot/prompt tonnage availability for 4,250 TEU baby panamaxes in Asia up by over 80% to 27 units compared with end of April (15 units). Maersk, which accounts for the vast majority of recent fixtures, pushed hire rates down to low $ 7,000’s for smaller panamaxes, against peak rates of 10,000 $/day in April. The next weeks will remaining tough, »unless the market sees more requirements, it will be diffcult for owners to hold these rate levels,« one broker warned. Below 4,000 TEU, the market looks more favourable from the owners’ perspective, with just a slightly weaker trend for the majority of size classes and types. Of note, gearless 2,700/2,800 TEU ships kept holding their ground pretty well as owners were still obtaining rates in excess of 9,000 $/day. past months for quite a few vessel types has halted in June. Despite the weakening charter market, so far values for many ship types remain more or less stable and only a few classes as e.g. the former panamax vessels have developed a significant downward traction. Nevertheless, activity remained relatively high. In total we recorded 26 transactions of container vessels for further trading. Interestingly, fifteen of the vessels transacted had a nominal capacity between 2,000 and 3,000 TEU. Twelve of those were gearless ships between 2,700 and 2,900 TEU showing that this vessel type is in high demand. By the way - this is also reflected by its stable charter rate development. Demolition Sales Bustle at the recycling market for container vessels remained low in the last weeks. The negative development of global iron ore prices had its impact on quoted scrap prices. However the price decline has been minor compared to the fall of iron ore prices. Andreas Mietzner Tonnage availability has crept up, though, and there could be more competition from unemployed cheaper panamaxes in trades where upgrades from 2,800 to 4,250 TEU could make sense from an operational and commercial perspective. Geared 2,500 TEU ships came under greater rate pressure as the supply/demand balance shifted a bit more into charterers’ favour, with fixing levels in Asia down to mid/low 8,000’s $/day, according to brokers. There is quite a spread in rates between the regions, though, as charterers still had to pay over 9,000 $/day for geared 2,500 TEU’s in the Med and even over 10,000 $/day for one vessel trading on the Pacific coasts of North and Central America. Demand for feeder tonnage
