Märkte | Markets Feeder ship demand holding up While the largest sectors of the boxship charter market get under pressure, rate levels for small and midsize vessels remain very robust. By Michael Hollmann The final quarter of the year has begun and the container ship charter market still looks pretty stable despite slowing cargo traffc on the major west/west routes. Apparently global trade caught up with prolonged fleet overcapacity this year, providing for a more stable market foundation than in recent years. Global port throughput is now expected to exceed 6.0% this year, thus outpacing expected fleet growth of just under 5.0%. No wonder then, that the idle container ship fleet (charter-free tonnage + inactive liner-controlled vessels) remained at a relatively meagre 395,000 or 1.9% of the global fleet at the start of October, according to Alphaliner. The pressure of slack capacity so far is mainly just felt in the largest charter vessel sectors of 5,500-6,500 TEU and 8,500 TEU where a number of units ran into spot/ prompt positions, allowing charterers to beat hire rates down by a few thousand dollars from levels during September in some cases. CMA CGM was able to pick up the ‘GSL Tianjin’, coming off an OOCL charter, at just 13,000 $/day for 3-8 months, while some 5,500-6,000 TEU ships got fixed at similar levels following a previous benchmark of 15,000 $/day set in September. Classical panamaxes were under pressure, too, in the first half of October, with the ConTex panel of the Hamburg Shipbrokers’ Association rating 24-month and 12-month periods 4.0% and 3.4% weaker than 4 weeks earlier. However, tonnage demand from operators rebounded during calendar week 42 when a bunch of vessels disappeared for short and medium term employments at ratel levels ranging from upper 7,000’s to high 8,000’s $/day. The higher rates tended to be available in the Atlantic where Hapag-Lloyd reportedly extended a trio of 4,800 TEU ships at 8,800 $/day for 4-8 months trading between the Mediterranean and North America. Elsewhere, Offen Group was reported to have agreed a 3-6 months extension for the 4,255 TEU CPO Baltimore at 8,450 $/day to Cosco for its North Europe/Mediterranean service. By contrast, in the Pacific the 4,300 TEU Schubert accepted 7,600 $/day for 4-10 months in the Far East/Australia trade with CMA CGM/ ANL.Traditional sub-panamax type vessels continued to be in high demand, with rate levels for gearless 2,800 TEU ships stable at around 9,000 $/day or higher in Asia and finally ticking up a bit in the Atlantic/Mediterranean. Rate levels there nudged up from mid/upper 7,000’s to 8,000 $/day as highlighted by the extension of the 2,824 ‘Satje’ to Hapag-Lloyd. Geared 2,500 TEU types recorded a slight increase in average period rates by 1.3- 1.6% month-on-month, according to the ConTex panel. TEU Name dwt Built Type Speed Cons. Charterer Laycan Period Rate ($) FEEDER / HANDY 698 Max Power 8200 2008 g’less 17.0 28 HEDE Nov 3-6 m Intra-Asia 4700 957 Laetitia 11950 2007 geared 18.0 35 Cosco Nov 4-6 m Mediterranean (ext) 6800 1025 Philemon 14800 2010 g’less 14.0 23 + MGO CMA CGM Oct 12 m North Europe €6800 1118 Frisia Iller 13760 2007 geared 19.5 36 CMA CGM Oct 9-12 m Intra-Asia 6500 1118 Mito Strait 13760 2006 g’less 19.5 39 Unifeeder Nov 7-10 m Hamburg/Sweden (ext) 6450 1118 Asian Sun 13742 2006 g’less 19.5 Tropical Oct 5-7 m Caribbean 7750 1284 AS Faustina 18480 2007 geared 19.0 Seabord Marine Oct 12 m Caribbean net 8650 1740 Okee Ann Mari 23579 2002 geared 20.5 CMA CGM Oct 10-12 m Mediterranean (ext) 7900 1740 Hansa Ronneburg 23508 2004 geared 21.0 64 + 3.5 Sea Consortium Nov 3-5 m WC Central America (ext) 8300 1756 San Georgio 24157 2013 geared 19.0 47 Maersk/MCC Nov 5-7 m Far East/Bangladesh (ext) net 10150 1924 Delphis Bothnia 24750 2016 g’less 18.5 Boluda Lines Oct 1-3 m Atlantic/Iberia trade 10000 SUB-PANAMAX 2554 Annette-S. 34376 2014 g’less 22.0 88 Evergreen Oct 5-7 m Intra-Asia 9150 2564 City of Beijing 34418 2009 geared 21.0 84 + 5 Emirates Shipping Oct 5-7 m FE/East Africa (ext) 8500 2785 Rita 37212 2007 geared 14.5 30 + 3 Log-In Logistica Nov 6-8 m Brazil cabotage net 9000 2796 Calidris 41400 2012 g’less 20.0 76 TS Lines Oct 10-15 d Intra-Asia 9500 3091 Demeter 41686 2006 geared 22.0 105 + 4.5 CMA CGM Nov 4-6 m Med/West Africa (ext) 8500 3426 Primavera 42650 2008 g’less 23.0 MSC Oct 5-7 m USEC/South Africa (ext) 8200 TRADITIONAL PANAMAX AND WIDEBEAM 4255 Schubert 51450 2010 g’less 23.3 123.9 CMA CGM/ANL Oct 4-10 m FE/Australia 7600 4255 Heron Hunter 51743 2009 g’less 23.0 125.0 Cosco Dec 6 m North Europe/Med 8500 4258 JPO Virgo 50361 2009 g’less 14.0 33.0 Cosco Oct 5-7 m FE/Australia (ext) 8350 4620 RHL Concordia 50270 2012 g’less 23.0 Wan Hai Lines Oct 70-140 d Intra-Asia 14500 5047 Felixstowe Bridge 67310 2005 g’less 25.0 RCL Oct 4-7 m Far East/India 8500 5085 Las Vegas 67600 2008 g’less 24.3 Maersk Oct 70-80 d FE/US East Coast (ext) 8950 LARGE AND VERY LARGE 5992 E.R. Kobe 68156 2001 g’less 22.0 126 NYK Line Nov 4-6 m Far East/India trade 13250 6039 Los Angeles Trader 67780 2007 g’less 25.0 210 Wan Hai Lines Nov 5-8 m Far East/India trade 13350 Charter deals October / all information without guarantee 12 HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 11
Märkte | Markets Orders & Sales New Orders Container Large types are still in focus. In September, LOIs for various ULCVs were signed. DSME and Samsung have subscribed the LOIs reported on in our previous issue. MSC is the ordering party behind eleven 22,000 TEU ships addressed in September. Eastern Pacific has signed an LOI with HHI for four 14,000 TEU ships with supplemental 2+2 options, hawked around to cost 100 mill. $ each. For smaller segments, no new building orders were placed. Sales & Purchase Despite holidays in Far Eastern countries, the market for trading vessels was quite active in the second half of September and the first half of October. It seems that the different price expectations among sellers and buyers as observed in August have disappeared and both have accepted higher price levels. Especially for large feeders and Panamaxes, one can observe significant upward traction. A noteworthy en bloc deal : Seven Korean and Japanese-built Post-Panamax units acquired Market conditions in the sub- 2,000 TEU sectors firmed up notably in some areas. Brisk demand for geared 1,700 TEU ships across Asia saw period rates rise by circa 5% monthon-month, according to the Con- Tex, as prompt availability in the east fell to just 3 ships in mid-October. The feeder markets turned busier especially in North Europe, the Mediterranean and the Caribbean. With the approaching ice season, charterers in North Europe agreed significantly firmer rates for longer periods into next year. In the Mediterranean, market rates for ships around 1,000/1,100 TEU reportedly improved by circa 10% compared with September. M Light at end of tunnel for MPP market? by Greek Poseidon Container Holding Corp for 104 mill. $. Demolition The world price for iron ore decreased in September and the first half of October resulting in declining recycling activity. Nevertheless, the markets for demolition became more volatile and uncertain. Scrap prices are oscillating etween 360 and 427 $/ldt at the Indian sub-continent. A few cash buyers are still offering premiums in the anticipation of returning markets. Jan Göldner Fresh research by shipping consultant Drewry and latest commodity market trends have raised hopes that the embattled multipurpose shipping market is finally moving out of the doldrums. Both transportation demand from project and breakbulk shippers and market conditions in competing sectors are showing signs of improvement, Drewry points out in its latest MPP market outlook and forecaster. »The expectations for global GDP, coupled with those for global PMI [purchasing manager indices] and the rising oil price, are likely to lead to improved investment and therefore increased demand for breakbulk and project cargo,« commented the firm’s lead analyst for multipurpose shipping, Susan Oatway. Hence the share of multipurpose vessels against bulk carriers and container vessels in the overall dry and general cargo mix is expected to rise next year, from this year’s circa 1 billion tons. Improvements in the utilisation of the mpp fleet will be assisted by a likely retreat from breakbulk and project cargoes by container lines and bulk carriers. Both these are expected to focus more on their core cargo types as fleet overcapacity in their sectors eases, Drewry explains. Freight rates for both container lines and handysize bulk carriers are forecast to continue firming into 2018. Drewry’s new forecast follows the release of an improved shortrange outlook for the global steel industry whose products constitute important volume cargoes for multipurpose project carriers on various trade routes. The World Steel Association said last week that global steel demand is now projected to grow by 2.8% this year and by 1.6% in 2018. Its previous shortrange outlook released back in spring showed only 1.3% and 0.9% expected steel demand growth for 2017 and 2018. The markup was prompted by increased demand in China related to infrastructure spending as well as in the US, Europe and Japan, the World Steel Association said. Rising US oil production with its needs for equipment and material, much of it shipped in from suppliers in Europe, South America and Asia, is another positive for multipurpose shipping. The latest count of active drilling rigs in the US by consultancy Baker Hughes showed a circa 40% rise year-on-year to 928 units as per 13 October. mph COMPASS CONTAINER SHIP T/C MARKET 420 380 340 300 Month on Month 401 +0.7 % CONTAINER FREIGHT MARKET WCI Shanghai-Rotterdam 1,254 $/FEU - 15.5 % WCI Shanghai-Los Angeles 1,348 $/FEU - 13.0 % DRY CARGO / BULK TANKERS Average rates spot/up to 4 weeks validity WCI = World Container Index, supplier: Drewry Baltic Dry Index 1582 + 7.6 % Spot time charter averages ($/day) Capesize 5TC average 22,420 + 5.0 % Panamax 4TC average 13,249 + 8.8 % Supramax 6TC average 11,733 - 0.5 % Handysize 6TC average 9,882 + 14.3 % Forward / ffa front month Nov ($/day) Capesize 180k 18,850 - 14.0 % Panamax 13,530 + 8.2 % MPP 18.05.17 October ´16 $ 6,280 TMI Toepfer's Multipurpose Index Baltic Dirty Tanker Index 907 + 20.6 % Baltic Clean Tanker Index 540 - 11.5 % SHORTSEA / COASTER 19.10.17 October ´17 $ 6,475 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. Norbroker 3,500 dwt earnings est. 3,200 €/d + 14.2 % HC Shortsea Index 16.51 + 9.4 % ISTFIX Shortsea Index 725 + 17.3 % 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 19 / 20.10.2017, Alterations within four weeks HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 11 13
