Märkte | Markets Boxship owners hope for post-summer boost Charter rates for container vessels have kept drifting lower, albeit at different speeds. Cargo and freight developments remain fairly good, though With the northern holiday season in full swing, tonnage demand from container lines remained subdued well into August, with time charter rates falling faster. Based on the New ConTex, fixing levels for 1,100-4,250 TEU vessels slipped twice as fast during the last 4 weeks (as per 16 August) as during the previous 4-week period. The drop was -4.6%, against -2.3% before. Anecdotal evidence form chartering brokers suggests market activity in terms of number of fixtures is significantly down on last summer when container lines went on a fixing spree to ramp up route capacities, encouraged by improving world trade. Following an active period in the market and a shift from short/flexible to longer periods during the first half year, the charter sector’s tonnage situation has been stable enough to prevent disproportionate rate falls. A certain deterioration is normal during holiday season. Around 70 vessels were believed to be in spot position (in immediate need of fresh employment) by mid-August which, brokers say, was only a tad more than during August 2017. The overall »unused« capacity, including liner-controlled ships and tramp vessels that are commercially not available for various reasons (lay-up, repair etc.), has been fairly stable of late, with Alphaliner quoting a global idle fleet of 146 ships of 335,200 TEU in early August. The growing red ink in the Q2 results of container lines (Maersk, Hapag-Lloyd, Evergreen, OOCL etc.) is a clear indication of a tougher market environment. Freight rates kept lagging behind during the past 12 months as shipping lines added too much capacity while bunker prices went up. Also the growing trade tensions between the U.S. and the rest of the world and renewed Iran sanctions are posing demand side risks. Alphaliner: Containerships (Period) TEU Name dwt Built Type Speed Cons. Charterer Laycan Period Rate ($) Feeder / Handy 704 Atlantic South 8,508 2007 gearless 17.0 24 Containerships Aug 45–90 days Mediterranean 5,530 928 Nithi Bhum 11,655 2002 gearless 17.0 29 Pan Ocean Aug 3–6 months Intra-Asia (ext) 7,200 997 Vega Sagittarius 11,811 2012 geared 18.1 38.5 King Ocean Aug 12 months Caribbean (ext) 8,450 1096 New York Trader 12,890 2004 geared 20.0 43.0 Sea Consortium Aug 3–6 months Caribbean 7,700 1145 Asiatic Moon 12,545 2006 gearless 19.0 43.5 Heung-A Aug 6–8 months Intra-Asia 8,700 1440 Cape Flint 20,312 2006 gearless 19.8 45 Wan Hai Lines Aug 40–80 days Intra-Asia 10,100 1728 Altonia 22,968 2000 geared 20.0 54.5 Orient Express L. Aug 1 RV Chittagong trade (ext) 9,750 1730 Mount Kellett 23,367 2017 geared 18.5 45 Cosco Aug 4–6 months Intra-Asia (ext) 12,600 1740 Hansa Falkenburg 23,579 2008 geared 21.0 64 + 3.5 MCC / Maersk Aug 6–9 months Intra-Asia 9,450 1794 Macao Strait 25,903 2008 geared 20.5 75.9 Sea Consortium Aug 7–21 day Intra-Asia 10,500 Sub-Panamax 2506 Nordpacific 35,150 2018 geared 19.0 48.5 Marfret Aug 9–13 m Europe / USEC / NZ (ext) 14,600 2535 St Island 33,380 2010 gearless 22.5 80 Evergreen Aug 5–7 months Intra-Asia (ext) 10,000 2714 Ariana 38,700 2006 geared 21.6 85.5 + 5 China Nav./Swire Aug 5–9 months Asia / Pacific Islands 11,100 2824 Cordelia 39,442 2003 gearless 23.0 97 Evergreen Aug 6–8 months Intra-Asia 10,750 3614 Cali 48,997 2013 gearless 20.0 81.7 Gold Star Line / Zim Aug 3-9 months Far East 11,500 Traditional Panamax and Widebeam 4252 JPO Volans 50,334 2010 gearless 24.3 150 Cosco Aug 1–3 months China / Inia (ext) net 12,300 4672 RDO Fortune 63,007 2012 gearless 21.5 96 Yang Ming Aug 28–75 days Intra-Asia (ext) 14,900 5095 Dolphin II 65,890 2007 gearless 26.0 215 Maersk Aug 50 days FE / Australia round 12,500 5059 S Santiago 68,126 2006 gearless 24.3 160 Hapag-Lloyd Aug circa 65 days RV Med / US Gulf (ext) 13,000 5470 Bernadette 65,549 2009 gearless 24.5 170 HMM Aug 6–8 months FE / North Europe (ext) 12,150 Traditional Panamax and Widebeam 5527 Allegoria 68,228 2006 gearless 25.6 185 Hapag-Lloyd 6882 Cape Pioneer 79,880 2017 gearless 19.0 KMTC Aug 5–9 months Far East 17,500 8814 Northern Jade 108,106 2005 gearless 25.0 265 Cosco Aug 42 days FE / Australia round 15,000 8814 Northern Jamboree 108,827 2010 gearless 25.0 265 CMA CGM Aug 2–6 months Asia / US Gulf 15,350 Bulk carrier (Period) dwt Name Built Charterer Delivery Period Rate ($) Capesize 179,185 Genco Toger 2011 K Line China / Japan / Korea 07.–09.08. 4–6 months, redelivery worldwide 5TC avg 93,014 W-Ace 2011 Uniper retro Gibraltar 11.08. 4–7 months, redelivery worldwide 14,000 Panamax / Kamsarmax 81,600 Medi Newport 2017 Cobelfret Hong Kong 19.–14.08. 5–8 months, redelivery worldwide 14,000 75,311 Nirefs 2001 Hudson Ningbo 10.–16.08.- 11–4 months, redelivery worldwide 10,700 Supramax / Handy 48,897 Xin Hai Tong 9 2017 Ausca Shipping Qingdao prompt 4-6 months, redelivery worldwide 10,500 38,863 TS Echo 2016 Seacape Fortaleza (Brazil) prompt 2 months-max until Nov, redelivery ww 11,500 Charter deals August / all information without guarantee 10 HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 9
Märkte | Markets Orders & Sales »Uncertainty over cargo volumes in the next few months has never been greater for carriers.« Purchasing manager indices, a barometer for economic activity, have been trending lower globally over the past months, remaining in positive territory (above the 50 point threshold indicating growth) in all important regions, except Brazil. Fundamental conditions appear not to be so much worse than in spring. Freight rates have picked up over the past weeks as the traditional peak season for deepsea services got underway. In the important transpacific trade, spot freights have surged since liner carriers closed down services since end-June. Whether it will be sufficient in combination with volume growth to lift carriers’ Q3 results into the black, remains to be seen. General outlook appears not to be so bad unless the trade war escalates further. Regarding charter market activity and rate trends, the picture in mid-August is more varied than overall index movements suggest. Pressure has not let up for the very large gearless sectors (trad. post-panamax) and feeder/handytypes below 2,000 TEU. Rate levels for 3,500 TEU and for geared 2,500 TEU ships seem to have stabilised as tonnage availability remains tight or at least manageable. Panamax container ships experienced an uptick in demand, supported by new service launches between Asia and Australia. This helped push down spot availability to 4 units as per early August. A fine balance between supply and demand in the 3,000–3,700 TEU sector saw rate levels moving sideways, at least in the Atlantic where tonnage is scarce. The strength of the sector in that region has been underlined by a few charter transactions for gearless and geared units at mid/upper 12,000’s $/d versus low 11,000’s $/d in Asia. In the same New Orders Container Driven by the improvement in Intra-Asian trade expectations, contracting activity in the feeder segment increased. Yang Ming ordered 10+4 feedermax (2,700 TEU) at CSBC for 37.5 mill. $ each. They will be IMO-Tier II-compliant, fitted with 300 reefer plugs and there is the option to equip them with scrubbers later. In addition, Evergreen has put out a tender to take two series of twelve vessels of 1,800 TEU and 14 units of 2,500 TEU on long-term charter, while Wan Hai is negotiating for a eight 1,900 TEU vessels (+ options). Only one order was placed outside of the feeder segment. Eastern Pacific contracted four 15,128 TEU vessels at Hyundai Mipo. Secondhand Sales Container S&P activity decreased compared to the previous reporting period. The usual seasonal effect together with a weakening charter market are the assumable reasons for the low number of transactions. In total, six vessels changed hands. In the feeder segment, Jakarta-based shipowner Asian Bulk Logistics purchased the 1998, Japanese-built »Sinar Batam« (1,157 TEU) for 6 mill. $. In the bigger segment, the panamax »Patraikos« (2010) was sold to MPC Container Ships. The price is said to be 14,5 mill. $. Demolition Sales Over the last few weeks scrap prices declined across the five major recycling destinations Bangladesh, India, Pakistan, Turkey and China. 2018s low activity continues with two reported candidates during the last four weeks. Jan Göldner vein, geared 2,500 TEU units were able to maintain rate levels over 12,000 $/d in the Atlantic versus mid-low 11,000 $/d in Asia where supply is more relaxed. Modern fuel-efficient designs suffered a minor deterioration, as illustrated by the extension of the SDARI 2500 type Nordpacific by Marfret for its Europe/Americas/New Zealand service with CMA CGM at 14,600 $/d – slightly down from the previous 15,000 $/d benchmark. The development in the gearless 2,800 TEU sector is puzzling experts, with rates falling below 11,000 $/d in most cases despite relatively scant supply (2 units spot + 2 geared, early August). Brokers suggest that low availability levels could see rates for this type make a sharp reversal if demand picks up after summer. The situation for smaller vessels below 2,000 TEU (often feeder services) has been more difficult. Some types and regions (1,700 TEU Asia, 1,000 TEU North Europe) are suffering more than others, but none really bucks the trend so far. Hamburg’s Ernst Russ Shipbroker explains this with a pronounced seasonality in cargo volumes particularly in September. In its latest Maritime Overview it writes that trading activity in the feeder sectors tends to slip by around 5% during that month before it gets busier again thanks to peak season transhipment volumes from October. In the largest gearless segments above 5,500TEU there has also been a notable aggravation as more tonnage gets released due to service closures in the transpacific. The situation has turned worse both for smaller and larger post-panamaxes, with standard 8,500TEU ships registering a fall in rates to just 15,000’s $/d for short period while modern 6,800TEU widebeams got marked down to 17,500 $/d – down several thousand dollars for both types within 6–8 weeks.mph COMPASS 550 500 450 400 CONTAINER SHIP T/C MARKET 15.03.18 Month on Month 498 - 4.6 % CONTAINER FREIGHT MARKET WCI Shanghai-Rotterdam 1,786 $/FEU + 7.4 % WCI Shanghai-Los Angeles 2,196 $/FEU + 34.5 % Average rates spot/up to 4 weeks validity WCI = World Container Index, supplier: Drewry DRY CARGO / BULK Baltic Dry Index 1720 + 3.8 % Spot time charter averages ($/day) Capesize 5TC average 25,592 + 7.4 % Panamax 4TC average 11,594 - 5.8 % Supramax 6TC average 11,619 + 4.2 % Handysize 6TC average 7,929 - 5.4 % Forward / ffa front month Sep ’18 ($/day) Capesize 180k 24,740 + 22.0 % Panamax 12,495 + 4.6 % TANKERS Baltic Dirty Tanker Index 731 + 2.4 % Baltic Clean Tanker Index 491 - 0.5 % SHORTSEA / COASTER 16.08.18 Save the date: 22. November 2018 Norbroker 3, dwt earnings est. 2,100 €/d - 16.0 % HC Shortsea Index 16.08 - 2.5 % ISTFIX Shortsea Index 605 + 1.0 % 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 16.08.2018, Alterations within four weeks HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 9 11
