Container carrier focus on logistics may blunt ship orders
Monday, 14 January 2019
But outlook for 2019 muddled by U.S.-China trade war.
Maersk, the largest container carrier, has said it wants to become a “global integrator of container logistics;” CMA CGM has acquired a large stake in CEVA Logistics and made a tender offer for remaining shares; and COSCO Shipping said in its last annual report that it also plans to emphasize door-to-door products.
Although last year Korea’s Hyundai Merchant Marine ordered a dozen 23,000-TEU ships and eight 15,000-TEU ships that will boost the company’s capacity by 496,000 TEUs, Heaney said, “Aside from feeder ship replenishment, there has been no reaction from other lines to HMM’s mega-ship order and as such we have greatly reduced our projected new orders for 2020 onwards.”
Drewry foresees a “tighter but still oversupplied market. Ultimately, we believe that these adjustments on the supply side will be sufficient to cushion the blow from slowing demand growth and will contribute to better freight rates and profits.”
However, the trade war between the U.S. and China has muddled the outlook for container shipping.
“Last year was one of the most unpredictable the container shipping industry has faced, and this year is likely to be similarly volatile with question marks still hanging over the U.S.-China trade war and new fuel regulations. However, despite being dogged by uncertainty, Drewry is predicting another solid year for the market,” says Heaney.
Drewry says, “Weaker global macro-economic drivers contributed to a downgrade to Drewry’s port throughput forecast for 2019 to approximately 4 percent, but that softening trend should be mitigated by changes made on the supply side to better balance the market.”
Adjustments to the containership orderbook in its most recent Container Forecaster report reveal “deliveries have been spread more widely than before with more original 2018-19 newbuilds being pushed out to 2020. Combined with an expected increase in demolitions the net addition to the fleet is expected to be only half that of 2018, leading to a fleet growth rate of just 2.5 percent.”
Drewry added the mandate to reduce sulfur emissions from ships starting on Jan. 1, 2020 has “the potential to curb capacity, at least on a temporary basis. A growing tendency towards retrofitting scrubbers could see a number of ships taken out of service for a number of weeks at a time, while more generally Drewry expects shipowners to idle and eventually scrap more older and uneconomic ships before the 1 January deadline. Wider use of slow steaming will also help to absorb new capacity and reduce the often negative influence of the cascade on the supply-demand balance.”
Port handling problems for megaships ‘past their worst’
Tuesday, 15 January 2019
Senior analyst says terminals have now largely learned to effectively manage Ultra Large Container Vessels, but they still present significant issues when off-schedule.
The challenges for container terminals in handling Ultra Large Container Vessels (ULCVs) are past their worst, although they still present significant challenges for ports and their customers, according on one senior analyst.
Drewry’s senior analyst for Ports & Terminals, Neil Davidson, told Lloyd’s Loading List that terminals had now largely learned to effectively manage handling ULCVs, but they still presented some significant challenges, especially if they arrived at terminal off-schedule. “This, and volume peaks caused by the combination of bigger ships and reduced service frequency will continue to make life challenging,” he added.
“The good news for the industry is that there will be no significant increase in maximum containership size. Maximum teu intake is going up but physical dimensions are not.”
As reported this week Drewry has “greatly reduced” its expectations of new orders for ultra-large container vessels (ULCVs) as a result of an apparent change of focus among some of the major carriers towards broadening and deepening their involvement in the wider container logistics market, trends it believes will aide the overall container shipping supply-demand balance.
However, the cascading of larger vessels into trades where ports are used to handling smaller vessels will create handling issues. “Each port will see increasing pressure on whichever berths are able to handle the biggest ships, and increased obsolescence of older berths,” Davidson added.
Davidson forecasts that global container terminal industry will remain “a very solid, profitable business” this year, with throughput of over 800 million teu set to generate EBITDA in excess of US$25 billion.
“We will see a softening of the global container port demand growth rate, down from an estimated 4.7% in 2018 to just over 4% in 2019, although 4% is still very respectable and adds over 30 million teu to the world total,” he said.
“However, the projection for 2019 is highly uncertain due to the US-China tariff wars, Brexit etc. So there is a big caveat.”
The uncertain demand outlook is expected to dampen investor and operator enthusiasm for new capacity investments.
“Returns are not what they used to be,” he said. “Even Chinese players may be affected if China’s economy slows markedly.
“Greenfield expansion projects will be the area hardest hit. Nevertheless, a global capacity addition of over 25 million teu can be expected in 2019, representing a spend of circa US$7.5 billion.”
According to Davidson, port and terminal operators will face a number of new technology challenges this year, particularly as they try to find elbow room to generate more revenue up and down their highly competitive hinterland supply chains.
“The opportunities offered by digitisation, automation, blockchain, smart ports, IoT, and hyperloop will continue to be vigorously explored by both terminal operators and port authorities,” he said. “However, the big challenge remains: how to find the way through the minefield of options to focus on what will really work and what has the best potential.
“Linked closely to [the tech challenge], terminal operators and port authorities will continue to seek to expand their activities beyond the port gate into the wider supply chain, to try and diversify sources of revenue, tie in traffic and get closer to cargo owners.
“But it’s a crowded field, with the heavyweight liner shipping companies aiming to do the same thing.
“It remains to be seen if anyone can succeed at it.”
Drewry: 2019 Another Solid Year for Container Market
(World Maritime News)
Tuesday, 15 January 2019
The industry’s supply-demand balance will benefit from a reduced appetite for ultra large container vessels (ULCVs) among the major carriers, according to shipping consultancy Drewry.
“Aside from feeder ship replenishment, there has been no reaction from other lines to HMM’s mega-ship order and as such we have greatly reduced our projected new orders for 2020 onwards,” Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster, said.
“This subsequently feeds into a much brighter supply-demand index forecast for carriers through 2022, although the index is still expected to remain below the important 100 marker, indicative of a tighter but still over-supplied market.
Heaney further said that these adjustments on the supply side would be sufficient “to cushion the blow from slowing demand growth” and would contribute to better freight rates and profits.
Weaker global macro-economic drivers contributed to a downgrade to Drewry’s port throughput forecast for 2019 to around 4%, but that softening trend should be mitigated by changes made on the supply side to better balance the market.
Adjustments to the containership orderbook reveal that deliveries have been spread more widely than before with more original 2018-19 newbuilds being pushed out to 2020. Combined with an expected increase in demolitions the net addition to the fleet is expected to be only half that of 2018, leading to a fleet growth rate of just 2.5%.
“Last year was one of the most unpredictable the container shipping industry has faced, and this year is likely to be similarly volatile with question marks still hanging over the US-China trade war and new fuel regulations. However, despite being dogged by uncertainty, Drewry is predicting another solid year for the market,” said Heaney.
Shipper survey reveals openness to rate premiums
Thursday, 10 January 2019
Fears that transparent online freight rates only lead to competition on price may be unfounded after a new study showed almost half of customers choose not to book at the lowest rate.
Fears that transparent online freight rates only lead to competition on price may not hold water after a new study showed almost half of shippers choose not to book at the lowest rate.
The analysis undertaken by Danish consultants Sea-Intelligence concludes that for at least half the market other parameters provide for an opportunity to charge a premium.
Using data supplied by Cogoport, an online freight platform through which more than 100,000 teu has been booked, Sea-Intelligence found that in the case of 780,000 offers, when presented with multiple rate options as many as 48.8% of shippers chose not to book at the lowest rate.
“Given the fact that these shippers indeed had a transparent choice to actually book the lowest rate, this clearly shows that price is not the only determinant when selling freight online,” said Sea-Intelligence. “Half the spot market is perfectly willing to pay a premium even when it is evident to them that they are not choosing the lowest price.”
The rate offers covered around 5,800 port combinations predominately on the India trade lanes.
An analysis of those that decided not to go with the lowest available rate found that 24.4% of shippers were willing to pay a premium of up to 13% and 24.4% of shippers were willing to pay a premium of more than 13%.
However, when taking into account the actual volume associated with each booking Sea-Intelligence said that the revenue obtained was only 6% higher than what would have resulted from always booking at the lowest price.
Sea-Intelligence said that this, unsurprisingly, suggests that high volume shippers and shipments pay the lowest freight rates, and that the smaller shipments pay higher premiums.
Therefore, it explained that there is a limit as to the magnitude of premiums that theoretically could be gained.
“But the very presence of the premium is a strong indicator to the freight providers that in the dawning era of online freight, it is of paramount importance to be able to gain brand recognition for offering premium services, in order to tap into the freight rate premium,” said Sea-Intelligence.
Ocean market set to tighten due to lowered capacity expectations
Monday, 14 January 2019
‘Greatly reduced’ orders for ultra-large container vessels should aide container supply-demand balance, as major carriers focus on becoming global logistics integrators, Drewry reports.
Leading container shipping analyst has Drewry “greatly reduced” its expectations of new orders for ultra-large container vessels (ULCVs) as a result of an apparent change of focus among some of the major carriers towards broadening and deepening their involvement in the wider container logistics market, trends it believes will aide the overall container shipping supply-demand balance.
In a briefing today, Simon Heaney, senior manager for container research at Drewry and editor of the company’s Container Forecaster report, commented: “We believe that the industry’s supply-demand balance will benefit from a reduced appetite for ULCVs among the major carriers, some of which now have their eyes fixed on a bigger prize of becoming global logistics integrators. Aside from feeder ship replenishment, there has been no reaction from other lines to HMM’s mega-ship order and as such we have greatly reduced our projected new orders for 2020 onwards.
“This subsequently feeds into a much brighter supply-demand index forecast for carriers through 2022, although the index is still expected to remain below the important 100 marker, indicative of a tighter but still over-supplied market. Ultimately, we believe that these adjustments on the supply side will be sufficient to cushion the blow from slowing demand growth and will contribute to better freight rates and profits.”
Weaker global macro-economic drivers contributed to a downgrade to Drewry’s port throughput forecast for 2019 to approximately 4%, but that softening trend should be mitigated by changes made on the supply side to better balance the market, Drewry believes. “Adjustments to the containership orderbook since the last Container Forecaster reveal that deliveries have been spread more widely than before, with more original 2018-19 newbuilds being pushed out to 2020,” Drewry noted. “Combined with an expected increase in demolitions, the net addition to the fleet is expected to be only half that of 2018, leading to a fleet growth rate of just 2.5%.”
Additionally, supply-side moves associated with the IMO’s upcoming 2020 low-sulphur fuel regulation have the potential to curb capacity, at least on a temporary basis, Drewry noted. “A growing tendency towards retro-fitting scrubbers could see a number of ships taken out of service for a number of weeks at a time, while more generally Drewry expects ship-owners to idle and eventually scrap more older and uneconomic ships before the 1 January deadline.
“Wider use of slow steaming will also help to absorb new capacity and reduce the often negative influence of the cascade on the supply-demand balance.”
Heaney concluded: “Last year was one of the most unpredictable the container shipping industry has faced, and this year is likely to be similarly volatile with question marks still hanging over the US-China trade war and new fuel regulations. However, despite being dogged by uncertainty, Drewry is predicting another solid year for the market.”
HMM CEO: 2020 Will Be a Year of Quantum Leap for Us
(World Maritime News)
Friday, 11 January 2019
2020 will be a year of quantum leap for the South Korean shipping company Hyundai Merchant Marine (HMM), the company’s CEO C. K. Yoo believes.
The leap would be led by the newly ordered 23,000 TEU containerships, Yoo pointed out, but also by considerable investment in IT, global network, education and improvement of customer service. In addition, HMM has managed to reduce its terminal handling charges by re-acquiring rights of the Hyundai Pusan New Port Terminal, thus maximizing profitability, Yoo explained.
As World Maritime News reported earlier, HMM acquired 50 ownership in the Hyundai Pusan New-Port Terminal that was sold off in 2016 as part of the company’s restructuring.
“Last year, we steadily made preparations for a new leap in the midst of difficult internal and external circumstances, including US sanctions on Iran, soaring oil prices, and global trade conflict, achieving a 150% increase in handling cargo volume from 3 million TEU in 2016 to 4.5 million TEU in 2018, thereby restoring trust of our customers,” he commented.
“We have also launched the Asia Europe Express (AEX) service, which links Asia-Northern Europe, as a basis to prepare for the introduction of mega vessels in 2020. We have also introduced M/V HMM Promise and HMM Blessing, the first mega containerships in the world to be equipped with scrubbers, so that we are able to preemptively cope with changes in the competitive environment caused by new environmental regulations.”
In order to prepare for the operation of the colossal vessels, including the five very large crude carriers (VLCCs), which will be deployed every two months from January this year, the company’s staff needs to prepare.
To remind, the five 300,000 dwt VLCCs were ordered in 2017 from Daewoo Shipbuilding & Marine Engineering (DSME) for a total of approximately USD 417 billion.
According to Yoo, the preparation process would see reforming of HMM’s global organization as well as relocation and investment in human resources.
Commenting on the growing uncertainty in the industry from environmental regulations, Yoo called on gathering wisdom and knowledge across the company to turn the challenge from the environmental regulation paradigm into an opportunity.
ZIM and 2M expand cooperation
Thursday, 10 January 2019
ZIM, Maersk and MSC announce that they will share space on four additional services.
The agreement follows a cooperation agreement the three companies announced last summer that went into effect in September on services between Asia and the U.S. East Coast.
“Having successfully implemented our strategic cooperation, we are very pleased to expand the partnership with ZIM into additional geographies,” said Søren Toft, chief operating officer at A.P. Møller – Maersk. This agreement delivers mutual benefits to both parties. For Maersk it provides operational efficiencies that will enable our continued drive to deliver competitive and reliable products for our customers in the world’s most comprehensive east-west network.”
Eli Glickman, chief executive officer of ZIM, said, “This is a major strategic step, upgrading ZIM’s competitiveness.”
“We are very proud to team up with the two largest players in the industry and to expand our cooperation with the 2M Alliance. The new strategic agreement means faster and more efficient service with better geographic coverage and extended direct port calls for the benefit of our customers, in line with our vision to provide best-in-class service,” he added. “We will significantly increase our ability to provide the best of both worlds: top-level line coverage combined with our exceptional customer service and personal touch. The agreement is a game-changer, and I am confident it will support ZIM’s growth and profitability.”
ZIM said the agreement will involve vessel sharing, slot exchanges and purchases and that its capacity will remain about the same.
In the Pacific Northwest, ZIM will contribute four 8,500 TEU ships to the seven vessel string in what is now Maersk’s TP9/MSC’s Maple service. ZIM will call it the ZIM Pacific Pollux (ZP9) service. Currently Maersk operates all seven ships in the string.
ZIM said the new services will replace its ZIM Med Pacific or ZMP service.
Maersk said, “Part of the ZIM slots on the TP9 will be swapped for access to slots on the fully 2M operated TP8 service. There will be no schedule changes to the TP8 and TP9 services."
While Maersk and MSC will continue to offer service to Long Beach and Oakland on the the TP8/Orient Service, Zim will not what use what it calls the ZP8 Pacific Procyon string to serve California, but will only use it for cargo moving to and from Prince Rupert.
“Between Asia and the Mediterranean, ZIM gets access to 2M slots on the AE12 and AE15 services. There will be no changes to the AE12 and AE15 schedules, which were announced in December 2018 as part of a network upgrade to further improve Maersk schedule reliability between Asia and Europe/Mediterranean. Those changes are to start on westbound sailings in March 2019.”
ZIM said its rotation on the four services will be as follows:
• ZIM Pacific Pollux (ZP9): Kaohsiung – Xiamen – Yantian – Ningbo – Shanghai – Busan – Vancouver – Seattle - Yokohama – Busan – Kaohsiung.
• ZIM Pacific Procyon (ZP8): Xingang – Qingdao – Shanghai – Busan – Yokohama – Prince Rupert – Xingang.
• Sirius Line (ZAS): Xingang – Dalian – Pusan – Shanghai – Ningbo – Shekou – Singapore – Port Said East – Haifa – Port-Said East – Singapore – Xingang. Maersk calls this the AE12, MSC calls it the Phoenix.
• Spica Line (ZMS): Pusan – Shanghai – Ningbo – Shekou – Singapore – Port Said East – Yarimca – Istanbul – Asyaport – Piraeus – Singapore – Shekou – Pusan. Maersk calls this string the AE15, MSC calls it the Tiger.
ZIM's schedule omits some ports that Maersk and MSC call with these two Asia-Europe strings.
ZIM said that to supplement and complement its services in the East Mediterranean it “will introduce a new array of exclusive, ZIM-operated feeder lines synchronized with the mainliners and catering to the regional market in a comprehensive and efficient way. A full, detailed announcement regarding the new regional network will be issued separately.”
GSL revises South China - Vietnam offering
From Wed/09-Jan to Tue/15-Jan
Gold Star Line (GSL) will revise its direct offering between South China and Vietnam through the introduction of a weekly service branded ‘Haiphong Express 3’ (HX3) that will be ensured through coloading on a new ‘VH3’ service operated by Vietnamese carrier Bien Dong Shipping (a subsidiary of Vinalines group).
This 'VH3/HSX3' service will connect Dachan Bay, Hong Kong (3 terminals – MIT, HIT, CMCS), Haiphong, Cai Mep, Ho Chi Minh City, Haiphong, Qinzhou, Dachan Bay. It will encompass the current Hong Kong-Haiphong ‘VH3’ shuttle ensured by Bien Dong with its 1,016 teu BIEN DONG NAVIGATOR.
The new 'VH3' will turn in two weeks using two ships, the 1,016 teu BIEN DONG NAVIGATOR and the 1,118 teu VINALINES DIAMOND (which is chartered out to GSL) that is currently employed in the domestic Vietnam trade. The extension will take effect starting on 15 January from Hong Kong, which coincides with GSL first effective sailing on the service. ONE, a current slot taker and main backer of feeder volumes on the current 'VH3' shuttle, is expected to extend its participation to the new range of ports.
The new ‘HX3’ will replace GSL's current ‘HX2’ service that covers a similar rotation with the exception of Southern Vietnam calls, ensured through slots on the ‘VQX’ service jointly operated by X-Press Feeders and Haian Transport. GSL last ‘HX2’ sailing is scheduled on 12 January from Dachan Bay on the HAIAN SONG.
CONCOR commences India coastal service
From Wed/09-Jan to Tue/15-Jan
Container Corporation of India (CONCOR), a state-run provider of inland transport by rail for containers, has inaugurated its entry into the India coastal shipping business. The maiden voyage occurred on 10 January from Kandla with the 1,613 teu SSL MUMBAI, an Indianflagged containership chartered from Shreyas Shipping by CONCOR partners.
The new coastal service connects Kandla, Mangalore, Cochin and Tuticorin on a weekly basis. It turns in two weeks with two dedicated ships, each with a minimum capacity of 700 loaded containers based on CONCOR requirements, with the second ship yet to be named. The service accepts loaded/empty containers and breakbulk cargoes. In addition, CONCOR will provide first and last mile connectivity using its extensive rail and road network.
CONCOR, which operates a nationwide inland transport railway network for containers, has been planning its entry into India coastal shipping business since the middle of last year by teaming up with an existing player in the industry. It went through three rounds of tender until it finally reach into and agreement and entered into a 10 year contract with Vishwa Samudera Coastal Line, a joint venture between Seaport Cargo Logistic, a unit of CVR Group that runs Krishnapatnam Port and VM Logistic, based in Hyderabad.
This move is in line with the Indian government directions to alleviate congestion in its rail and road network.
CMA CGM Oceania Lines - PAD service to resume weekly rotations
Tuesday, 15 January 2019
CMA CGM has announced that the PAD service linking North Europe with USEC, French Pacific islands, Australia and New Zealand will offer a weekly frequency starting from mid-February 2019.
• From Europe, first sailing to offer a weekly frequency will be m/v “EM CORFU” (expected in Le Havre on February 23rd, 2019)
• From New Zealand, first sailing to offer a weekly frequency will be m/v “EM CORFU (expected in Tauranga on April 16th, 2019)
Rotation will be as follows:
Zeebrugge (as of 20/05) - London Gateway - Rotterdam - Dunkirk - Le Havre - New York - Savannah - Cartagena - Papeete - Noumea - Brisbane - Sydney - Melbourne - Nelson - Tauranga - Manzanillo - Savannah - Philadelphia - Zeebruge.
Napier will be offered by Oceania feeder.
The service will be operated with 13 vessels of ~2,500 TEU nominal, with 600 reefer plugs, CMA CGM deploying 12 vessels.
Container spot rates hold steady as carriers adjust capacity for CNY holiday
(The Load Star)
Friday, 11 January 2019
After a strong finish to 2018, container spot rates on the major east-west routes, as recorded by the Shanghai Containerized Freight Index (SCFI), nudged down slightly this week – but they remain notably higher than a year ago.
And with carriers announcing significant blank sailing programmes across their east-west networks around the Chinese new year holiday next month, rates look likely to hold reasonably steady in the coming weeks.
The European components of the SCFI were both 1.7% lower on the week, with spot rates from Asia to North Europe at $979 per teu and rates to Mediterranean ports $980 per teu.
This week saw the two biggest alliances on the tradelane announce void sailings around the Chinese new year holiday, which commences on 5 February.
The 2M was first, on Monday, with Maersk Line and MSC advising Asia-Europe customers they would be cancelling two sailings to North Europe and one to the Mediterranean in weeks six, seven and eight.
The void sailings include the 2M’s AE2/Swan loop to Rotterdam and Felixstowe which was only reactivated in December after being suspended at the end of September due to soft demand projections for bookings after the Chinese Golden Week holiday.
By blanking two out of its six loops the 2M will take out up to 40,000 teu of its weekly headhaul capacity.
The Ocean Alliance responded even more radically by pulling half of its weekly capacity to North Europe in weeks six and seven, with the blanking of three loops, suggesting that carriers are committed this year to using the full extent of their capacity management tools to balance supply and demand.
Indeed, having worked hard to successfully push through FAK rate increases, it appears that the carriers are not prepared to see rates in the first quarter erode to the level of March last year, when they slumped to around $600 per teu.
Meanwhile, on the transpacific tradelane, carriers have adopted a similar strategy of blank sailings around the CNY period.
They are also intent on protecting the current healthy rate levels on the trade, which have been driven by the pre-US duty tariff hike cargo boom on imports from China and are around 25% higher to the US west coast and 17% to the east coast than than a year ago.
This week’s SCFI recorded a modest decline of 2% for the US west coast to $1,895 per 40ft and a 2.5% fall on spot rates to the east coast to $3,040 per 40ft.
A 25% duty on the import of some 5,700 Chinese products to the US was deferred until 2 March to enable trade issues between the two nations to be resolved, and with negotiations currently under way in Beijing, shippers will be looking for early indications of the outcome of the talks to determine their forward planning.
George Griffiths, editor global container freight market at S&P Global Platts, told The Loadstar today: “Questions still remain in the market over the support in demand that will come from the delay in tariffs between the US and China for the transpacific routes, with importers heard to be looking to boost stocks before the deadline hits at the end of February.”
Weekly Broker: Time to double down?
Thursday, 10 January 2019
Place your bets! Which sector will appreciate the most in the coming 12 months? As reported on this site earlier this week, VesselsValue has picked classic panamax boxships to pick up in price the most this year. Opinion seems divided however, but optimism abounds that there’s money to be made in the final year of a tricky decade for shipping.
The year 2019 has started with plenty of enthusiasm for both the dry bulk and tanker shipping markets. Optimism has also been reflected in the sale and purchase market with prices in most segments starting to pick up in the first 10 days of the year.
Prices for secondhand tankers have seen a strong uptrend in the past month in all sizes and age groups. According to the indicative market values by Allied Shipbroking, since the end of November, the average price for 10-year-old and 15-year-old VLCCs is up by 9.4% and 10.3% respectively, average price for 10-year-old and 15-year-old 45,000 dwt MR tankers have increased by 12.9% and 13.5% respectively, while the average price for 10-year-old suezmaxes has gained 15.6% from $27.25m to $31.5m.
“On the tanker side, things remained relatively sluggish at the very start of the new year, underlying that the holiday mood hasn’t yet faded away for the wet market. With the freight market witnessing a drop the past couple of days, it seems that snp activity will continue at a slower pace for the time being. Notwithstanding this, given the overall better sentiment as of late, we can expect many interesting deals to take place in the not so distant future,” Allied Shipbroking said in its latest weekly report.
Allied Shipbroking listed the sale of the 2012 Chinese-built 18,000 dwt product tanker Chemical Aquarius. Greek owner Panos Laskaridias’ Lavinia has acquired the vessel from Chinese owner Maple Leaf Shipping for a price of $11.5m.
Andreas J. Zachariassen reported that the 2010 Japanese-built 48,000 dwt MR2 tanker Nord Inspiration was sold by Japanese owner Nippon Oil Tankers to compatriot company Fuyo Kaiun for $16.75m. The transaction includes a time charter back to the previous operator, Norient Product Pool.
Average secondhand prices in most bulker segments have kept at similar levels or seen a slight increase for the past month apart from the capesize segment.
The average price for five-year-old 180,000 dwt capesize bulker has dropped 5.6% from $36m to $34m since the end of November while the average price for a five-year-old 82,000 dwt panamax has increased by 2.2% during the same period and most notably, average prices for five-year-old 37,000 dwt handysize bulker have increased by 6.5% from $15.5m to $16.5m during the period.
“On the dry bulk side, a fair volume of transactions took place the past couple of days, despite the fact that we are just few days after new year festivities, a point typically characterized by subdued activity in the snp market. At this point, focus is solely on the supramax and panamax/kamsarmax segments and on modern tonnage. With optimism back once more, we may well expect a further boost in activity during the upcoming weeks,” Allied Shipbroking said in its first 2019 weekly report.
Allied Shipbroking and Seasure Shipbroking all reported a deal in which German owner Oldendorff Carriers snapped up a resale 82,000 dwt newbuild kamsarmax, Atlantica Sun, from Atlantica Shipping for a price of $26.5m. The vessel, which has been renamed Kai Oldenforff, is currently under construction at China’s Hantong Ship Heavy Industry, and delivery is scheduled next month. In the meantime, several shipbroking houses reported that Oldendorff has sold off two 1991 vintage South Korean-built 77,000 dwt panamax bulkers called Carol and Berni to undisclosed buyers for $6.75m each.
Intermodal identified Greek owner White Sea Navigation as the buyer behind the sale of the 2011 Japanese-built supramax Topaz Halo. The 56,200 dwt vessel was sold by Japanese owner Nikko Kisen for a price of $15.4m.
Multiple shipbroking houses including Allied Shipbroking, Advanced Shipping & Trading, Banchero Costa and Lorentzen & Stemoco all reported the en bloc sale of two supramax bulkers, the 2010-built 57,000 dwt North Quay and the 2011-built Salford Quay. The two vessels have been sold by German owner Quayside Maritime Partners to Chinese interests for $19m in total. Quayside is a joint venture between E.R. Capital Holding and the Schulte Group.
In a recent court-led auction, Chinese owner Tangshan Dongfang Baode Trading has acquired the 2009-built 23,000 dwt handysize bulker Di Xiang for a price in the region of $5.3m. The vessel’s previous owner, Shantou Diyuan Shipping, suspended operations in 2017 due to a financial crisis with all of its vessels seized by a local court.
The containership sale and purchase market remained flat in the first week of the new year. Andreas J. Zachariassen reported the sale of two 2008-built 1,849 teu feeder boxships, Ibrahim Dede and Cafer Dede. Turkish owners Kalkavan sold the two ships for $9m each and Marinakis’ Capital Maritime & Trading is said to be the buyer of the pair.
Charter rates remain weak despite busy market
From Wed/09-Jan to Tue/15-Jan
After a quiet December, the container charter market has turned out to be busier than anticipated at the turn of the year.
However, this rally has been generally insufficient to lift charter rates, which remain disappointing for most vessel sizes, except for the larger and higher-end units.
The supply of tonnage continues to be relatively low in the bigger sizes (5,500 teu and over) but overcapacity remains substantial in the classic panamax sector and for tonnage between 1,000-and 2,900 teu. The 1,500-1,900 teu segment in particular, continues to suffer, with 25 ships currently in spot position.
The market outlook is mixed. In the short term, the upcoming Chinese New Year at the beginning of February is likely to slow the demand for tonnage, which will not help to absorb redundant capacities, especially in the small and medium sizes.
Activity is nonetheless expected to pick up again afterwards, with the volume of business slowly gaining momentum as the market approaches the traditionally busy months of March and April.
Synergy Group fleet boasted by new 20,000+ TEU containership
Tuesday, 15 January 2019
Synergy Group has taken delivery of Ever Gifted, an Ultra Large Container Vessel (ULCV) newbuilding constructed by renowned Japanese shipbuilder Imabari Shipbuilding.
Currently under Synergy’s technical management on Evergreen Line’s popular Far East-North Europe and Mediterranean service, the 20,000+ TEU capacity ULCV is one of the largest container ships in service worldwide.
“As a leader within the ship management sector, we are thrilled to join the 20,000+ TEU club,” said Captain Rajesh Unni, CEO and Founder of Singapore-headquartered Synergy Group.
“The Ever Gifted is one of the highest capacity container ships currently in service. It is also one of the most efficient, enviro-friendly and impressive vessels deployed across Evergreen’s service network. It offers fuel-efficient headhaul options and slow steaming variations on backhauls. We are absolutely delighted to have been entrusted with its safe operation.”
The Singapore-flagged, 199,489dwt Ever Gifted has an overall length (L.O.A) of 399.98 metres, beam of 58.8 metres, total capacity of 20,388 twenty-foot equivalent units (TEU) and 1,300 reefer points.
Fitted with a fuel optimised MAN B&W 11-cylinder G95ME engine, Ever Gifted offers a service speed of 23.2 knots and weighs in at 217,762 MT.
On January 15, Synergy will take delivery of Ever Grade, a sistership of Ever Gifted also constructed by Imabari Shipbuilding. “We eagerly look forward to the addition of the next set of ULCVs joining our fleet in the very near future as their Owners take advantage of our expertise in the management of the world’s largest container ships,” said Captain Unni.
“With a fleet of more than 200 vessels covering all sectors of the commercial maritime fleet, adding these ULCVs to our fleet further emphasises how Synergy Group has cemented it status as one of the world’s leading shipmanagers.”
Synergy continues to break new ground in technical and commercial shipmanagement innovation, consistently demonstrating its ability to manage the most technologically-advanced vessels joining the global fleet. In November last year, Synergy also joined with leading shipowners Reederei NORD and NISSEN Kaiun to set up N2Tankers, a new Aframax tanker pool.
“I think we have shown time and again that Synergy is uniquely equipped to take on the most demanding technical and commercial shipmanagement challenges,” said Captain Unni.
“Two years ago, we prepared and trained specialised crew to operate the world’s first Very Large Ethane Carriers (VLEC). It is challenges like these that we excel in. It’s not only about managing traditional ships. As a technical partner for shipowners, we need to be prepared to take on the challenges posed by new technology.
“Larger ships result in more complexity. New technology brings many unknowns. Modern shipmanagement is about preparing the next generation of crew to face these challenges and put in place processes that work seamlessly for these new kinds of vessel operations. Our teams have proven over and over that they can find the right solutions.
“These achievements would not be possible if our onshore and seagoing staff were not equipped and supported to ensure they perform to the peak of their capabilities.
“It’s all about people and building a unique culture. It takes time, but every step in that journey is worthwhile.”
Cosco Shipping Development in sale and leaseback of four boxships
Friday, 11 January 2019
Cosco Shipping Development has announced that the company has entered into the sale and leaseback arrangement for four container ships via its subsidiary to provide funds and expand financing channels.
Cosco Shipping Development (Hong Kong), a subsidiary of Cosco Shipping Development, will sell four container ships via its four single vessel company CSCL Spring Shipping, CSCL Summer Shipping, CSCL Winter Shipping and CSCL Bohai Sea Shipping Co, and leaseback the four ships from the subsidiaries of Financial Products Group (FPG).
Each of the four single vessel companies is incorporated in Hong Kong and an indirect wholly owned subsidiary of the Cosco Shipping Hong Kong.
The aggregate transaction price is $267m (equivalent to approximately HK$2.09bn).
The deal allows the group to obtain additional financing with the vessels and expands the company’s financing channels. The proceeds from the transaction will be used for the general working capital of the group, Cosco Shipping Development stated in a filing.
ADNOC acquires boxship from Celsius Shipping
Wednesday, 16 January, 2019
Abu Dhabi National Oil Company (ADNOC) has purchased 2,800 teu sub-panamax teu containership GH Mistral from Danish owner Celsius Shipping.
The vessel has been renamed Al Reem I under UAE flag. While the sale price was not disclosed, MSI values the ship at $10.6m.
ADNOC currently operates a container shuttle service connecting Khalifa to Ruwais with a fleet of four boxships.
Last week, ADNOC secured a three-year shipping contract from petrochemical company Borouge to transport 11 million tonnes of polymers from Ruwais container terminal to Khalifa and Jebel Ali Ports.
Dole books reefer boxship pair at CSSC Chengxi
Wednesday, 16 January, 2019
US food company Dole has signed shipbuilding contracts with CSSC Chengxi for two 2,500 teu boxships.
The price for each ship is $42m and the contract also includes options for an additional two vessels.
Each ship is equipped with a reefer capacity of over 900 feu. Delivery of the vessels are scheduled in 2020.
The new order is believed to be part of Dole’s plan to optimise its ageing reefer fleet. The company currently operates six reefers with an average age of 27 years.