HANSA 09-2017

Märkte | Markets Golden

Märkte | Markets Golden summer for tramp owners 2017 is bucking seasonal trends in that container ship charter rates trend up despite the summer holidays. By Michael Hollmann The charter market maintained its momentum over the past weeks, with period rates for fully cellular tonnage continuing to firm during August. The largest gearless vessels (in excess of 5,500 TEU) began to lead the market up thanks to sustained demand which saw spot/prompt availability almost evaporate since July. Just recently, the firmer trend branched out into the panamax, handy and feeder type vessels, as illustrated by a more benign performance of the New ConTex. The market barometer for the 1,100-4,250 TEU charter market sector made good some of the earlier losses and was up five points or 1.3% month-on-month by 17 August. Interestingly, it is the much-dismissed traditional panamax sector that posted the most significant improvements. The main ingredients of the firming charter market are improved, broadened GDP and world trade growth (+4.0% in 2017, according to IMF forecast) and clearly accelerated container trade growth, with French market analyst Alphaliner recording a 6.7% rise in global container port throughput in the first six months. Against the background of a largely stagnating or contracting fleet in the classes below 4,000 TEU, it was only a question of time until rising tonnage requirements by the container lines would begin to send hire rates for smaller vessels on a firmer path, too. Demand for the largest available ships in the charter market has remained brisk although the sheer lack of available tonnage keeps limiting fixing volumes. According to Alphaliner’s latest spot fleet count, there was only one unit in the 7,500-11,000 TEU sector seeking employment and two units in the 5,300-7,499 TEU segment. The sporadic fixtures that emerge continue to get concluded at levels above last done, with the Korean-owned 8,533 TEU »SM Charleston« – the former »E.R. Tianan« - reportedly agreeing 17,000 $ per day for a 8-10 month employment with MSC in a trade yet to be announced. This compares with a benchmark rate of only 14,500 $/ day (concluded on the 8,586 TEU »Gulf Bridge« by Maersk for 2-6 months) in our previous market wrap-up one month ago. The improvement for 5,500-6,500 TEU class ships was perhaps even more notable. Fixing at just 9,500-10,000 $/day a few weeks ago, levels have now surged past TEU Name dwt Built Type Speed Cons. Charterer Laycan Period Rate ($) FEEDER / HANDY 698 Ice Moon 8200 2008 gʹless 16.0 28.8 Royal Arctic Line Aug 14–20 days Cont /Greenland €4500 698 JRS Carina 8300 2007 gʹless 17.0 30.0 Centrans Aug 6–9 m Intra–Asia 4550 1114 Frisia Lahn 13760 2008 geared 16.0 33.5 PIL-MEL Aug 3–6 m Far East / South Pacific 5600 1118 Max Cavalier 13600 2007 geared 19.3 42.0 Italia Marittima Aug 4–6 m Mediterranean (ext) 6350 1155 Asiatic Horizon 12310 2008 gʹless 19.0 41.0 ITS Trading Sep 5–7 m Intra–Mediterranean 7000 1338 Bomar Regent 17108 2007 geared 20.0 46.8 + 3 Seatrade Aug 3–4 m Europe / Caribs 7400 1368 Hooge 16921 2006 geared 19.5 45 + 2.2 Coscon Aug 3–6 m Cont / Baltic (ext) 7800 1578 Ava D. 20600 2007 gʹless 19.0 50.5+4 MDO Maersk Aug 7–12 m Atlantic trade 7500 1730 Gdynia Trader 23579 2001 geared 20.0 54.5 Sea Consortium Aug 2–4 m Intra–Red Sea (ext) 7700 1740 Hansa Falkenburg 23579 2008 geared 21.0 64.5 + 3.5 MCC / Maersk Aug 50–150 d Intra–Asia 7650 1793 Komati 25899 2007 geared 20.5 60.4 CMA CGM /ANL Aug 4–8 m Far East / Persian Gulf 7250 2063 Bonavia 30518 1995 geared 20.0 67.0 Zim /GSL Aug 2–4 m Southeast Asia/Bangla. 7300 2194 Queen Esther 25539 2016 geared 19.0 48.0 + 3.5 MCC / Maersk Aug 7–10 m Intra–Asia (ext) 11300 SUB-PANAMAX 2506 EM Athens 32400 2000 geared 14.0 29.0 DʹAmico Aug 30–45 d Intra–Mediterranean 8500 2544 Guayaquil Bridge 34190 2010 geared 22.0 74.0 MCC / Maersk Aug 5–7 m Intra–Asia (ext) 8400 2741 Posen 37570 2007 gʹless 22.0 80.0 Sinokor Sep 3–7 m Intra–Asia net 9450 2742 Lorraine 37490 2006 gʹless 21.5 88.0 TS Lines Aug 5–7 m Intra–Asia (ext) 9600 2824 Frisia Göteborg 39418 2006 gʹless 23.0 108.0 Zim Sep 4–8 m India / Mediterranean 9000 3398 Natal 44174 2007 gʹless 22.4 105.0 RCL Sep 4–7 m Intra–Asia (ext) net 7500 3534 Pescara (ANL Barwon) 42011 2010 gʹless 21.0 104.0 Hapag-Lloyd Aug 45–55 d Transpacific Trade net 7850 TRADITIONAL PANAMAX AND WIDEBEAM 4241 Navios Azure 50629 2007 gʹless 20.0 96.0 CMA CGM Aug 2–3 m Europe / West Africa 8000 4250 Navios Amarillo 50500 2007 gʹless 24.5 133 Sea Consortium Aug 3–5 m Far East / India 7500 4578 OOCL Norfolk 50610 2009 gʹless 22.0 115 + 6 Hyundai MM Aug 5–7 m Intra–Asia 8300 4738 CSL Sophie 65006 2005 gʹless 23.5 CMA CGM Aug 2–5 m Far East / USEC 7000 4957 Tommi Ritscher 58000 2014 gʹless 17.0 43 Cosco Sep 7–9 m Far East / W Africa (ext) 12500 5041 Allise P. 65695 2007 gʹless 23.5 OOCL Aug 6–8 m Northeast Asia 8500 5043 Tianjin Bridge 67170 2004 gʹless 18.0 78 + 7.4 Simatech Aug 6 m Far East / India 8000 LARGE AND VERY LARGE 5527 Talassa 68228 2005 gʹless 21.0 115 MSC Aug 2–3 m Far East 13900 6008 E.R. France 67500 2001 gʹless 20.0 92.0 MSC Aug 6–8 m Far East /Australia 13900 6078 Conti Canberra 68788 1999 gʹless 24.0 205.0 TS Lines Aug 6–8 m Far East / India 13100 6422 NYK Lodestar 77900 2001 gʹless 25.0 NYK Line Sep 5–7 m Transpacific trade (ext) 13500 8034 Santa Larissa 104904 2005 gʹless 25.0 MSC Aug 11–13 m Europe / India (ext) 16500 8533 SM Charleston 103200 2005 gʹless 21.0 133.0 MSC Sep 8–10 m Far East trade tba 17000 Charter deals August / all information without guarantee 12 HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 9

Märkte | Markets Orders & Sales New Orders Container CMA CGM has signed LoIs with the two Chinese shipyards CSSC and SWS on the construction of up to nine ULCV. The vessels are reportedly designated to have a capacity of about 22,000 TEU. Scheduled delivery would be in 2019 and 2020. Depending on the chosen propulsion system the vessels are said to cost between 140 and 160 mill. $. In the smaller segments Singapore-based Eastern Pacific has placed an order for two ships at Zhejiang Ouhua. The 2,700 TEU vessels are hawked around to cost 29.5 mill $ each. Secondhand Sales Container The market for further trading container vessels remained active in July and August with various transactions to be observed. It was noticeable that the ratio of vended former panamax vessels was particularly high. While price level is still low, a firming tendency was recently perceivable in many segments. Demolition Sales The world market price of iron ore has stopped its increase in the second week of August. However, so far it has remained more or less stable around 74 $/t. Scrap prices have dwelled above 400 $/ldt at the Indian sub-continent and above 300 $ in Turkey. Despite the relative firm scrap prices, recycling activity was lower in this reporting period than it had been in the previous one. Andreas Mietzner COMPASS CONTAINER SHIP T/C MARKET 420 380 340 23.03.17 24.08.17 13,000 $ as evidenced by the 2005-built »Talassa« (5,527 TEU) which reportedly obtained 13,900 $/day for a 2-3 month employment with MSC in the Far East. A glance at the traditional post-panamax segment of our fixture list below shows that Geneva-based MSC has indeed been the most active charterer in this segment. Although the peak shipping season worldwide is bound to slow down as from October, market participants still see some upward potential in charter rates for the biggest ships over the near term. As Maersk Broker pointed out in a circular to principals: »There is very limited supply of tonnage for the next month within this segment and still a few operators looking for extra-loaders, so charter rates could possibly nudge [further) upwards.« »Panamaxes« back in favour The lack of very large units prompted more and more operators to shift to the panamax class as an alternative. There has been a burst of fixtures for traditional panamaxes which brought spot supply down a lot and rates back up. Fixtures now get done at 8,000 $ and higher which represents an improvement of more than 1,000 $ over the past four weeks. Even a few laid-up vessels got reactivated by owners and were absorbed without upsetting the firmer rate trend. Another factor that helped reduce charter tonnage availability was increased sale & purchase activity, including around eight ships that were picked up by operating owners, some of them probably for deployment in Chinese domestic trading. Below 4,000 TEU, it is mainly gearless 2,700/2,800 TEU, 1,700 TEU and smaller feeder units that are seeing a positive change in market direction. Looking at the gearless 2,700 TEU sector, the market continues to show significant imbalances between the Atlantic and Asia, with the latter very hungry for tonnage and providing much higher rates. After a bit of hesitation over the past weeks, operators are now beginning to scan the market for forthcoming requirements again. A few ships meanwhile fixed repositioning trips from Europe to Asia to exploit the higher rate levels available there. A few short-to-medium periods got covered a very firm numbers in excess of 9,000 $/day, with the 2006-built »Lorraine« (2,742 TEU) achieving 9,600 $/day in a 5-7 month extension with TS Lines while the 2,741 TEU »Posen« agreed 9,450 $/day – but on net basis (without address brokerage fees) – for 3-7 month period with Sinokor for intra-Asia trading. The 1,500-1,800 TEU sector proves to be busy as well. Some charterers are reportedly struggling to find suitable ships in the Far East, with all types of tonnage – from high-spec modern Bangkok-max via standard Wenchong to older flexible B170 types – seeing good demand. Some say it is surprising that charter rate levels have not pushed up faster based on supply/demand in the east. The fact is that rates are only gradually creeping up into the upper ,000’s. Latest reported fixtures were those of the »Hansa Falkenburg« (1,740 TEU, geared) at 7,650 $/ day for 50-150 days with Maersk-affliated MCC and of the 2001-built »Gdynia Trader« (B170 type, 1,730 TEU, geared) at 7,700 $/day in a 2-4 month extension with Sea Consortium. Activity in the feeder classes of 1,200 TEU and below has reportedly improved or remained stable in all major regions (Asia, Europe/Mediterranean, Caribbean). Tonnage supply is scarcest in Asia, both for 1,100 TEU and 700 TEU class ships, with rates for the latter slowly rising towards upper 4,000’s $/day levels. Demand for feeder vessels is reported to be improving in North Europe and the Mediterranean, too. Especially on the continent/ North Europe, brokers see potential for rate increases after supply got cleared out and most ships in the gearless 1,000 TEU class fixed for lengthier periods. mph 300 Month on Month 386 +1.3 % CONTAINER FREIGHT MARKET WCI Shanghai-Rotterdam 1,754 $/FEU + 2.9 % WCI Shanghai-Los Angeles 1,657 $/FEU + 33.4 % DRY CARGO / BULK TANKERS Average rates spot/up to 4 weeks validity WCI = World Container Index, supplier: Drewry Baltic Dry Index 1247 + 29.4 % Spot time charter averages ($/day) Capesize 5TC average 19,259 + 119 % Panamax 4TC average 10,703 + 6.0 % Supramax 6TC average 8,977 - 2.3 % Handysize 6TC average 6,802 - 6.6 % Forward / ffa front month Sep ($/day) Capesize 180k 18,825 + 5.3 % Panamax 11,045 + 36.4 % MPP .400 .200 .000 .800 .600 .400 .200 .000 .800 August ´16 $ 6,645 TMI Toepfer's Multipurpose Index The index is based on a 12,500 tdw MPP/HL »F-Type« vessel for a 6-12 months TC and represents the monthly assessment from operators, owners and brokers. Baltic Dirty Tanker Index 620 - 3.5 % Baltic Clean Tanker Index 517 - 5.1 % SHORTSEA / COASTER August ´17 $ 6,306 Norbroker 3,500 dwt earnings est. 2,050 €/d - 4.7 % HC Shortsea Index 14.66 - 2.2 % ISTFIX Shortsea Index 563 - 2.1 % Norbroker: spot t/c equivalent assessment basis round voyage North Sea/Baltic; HC Shipping & Chartering index tracking spot freights on 5 intra-European routes; Istfix Istanbul Freight Index covering spot freight ex Black Sea Data per 17.08.2017, Alterations within four weeks HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 9 13