March 6, 2015 – March 13, 2015
Container Market – Weekly Report
Chartering Market
Fixtures Reported This Week
The charter market continues to be active. However this week we noticed a
reduction in actual transactions concluded but most segments are
influenced by a fairly high volume of negotiations ongoing. Overall, there is
a general firming trend of charter rates with owners aiming for new
benchmarks. We are however also seeing an increasing number of vessels
being failed on charterers’ subjects as they reconsider their deployment
options.
Fd Patrizia Damato - Flag PAN - BLT 2015 - 83,731 DWT
9,200 TEU - STX 9200 - Cellular - Gearless - 21L
5 Years - World Wide - CMA CGM - USD 36,500.00 /Day
For the larger segments CMA CGM appeared as the charterers of 3 x 9,000
TEU WB newbuildings with the first ones scheduled for delivery late 2nd
quarter 15 at a reported rate of USD 36,500 daily for 5 years which
appears rather attractive for the charterer, considering the numbers
concluded for similar tonnage previously. Additional activity was actually
limited, with a couple of 8,500 TEU units again in spot / prompt positions.
Zim were linked to a longer charter of 10-12 months on the 5,700 TEU
‘E.R. BUSAN’ at USD 18,975 which is indeed another step up for this type.
Northern Guard - Flag LIB - BLT 2008 - 53,870 DWT
4,319 TEU - 2,816/HOM - 600 Plugs - Cellular - Gearless - 24.0/133.6
30-35 Days - Far East - Yang Ming - USD 15,900.00 /Day
The panamax segment appeared interesting with owners pushing for
higher rates in excess of USD 15,000 and longer periods but only with
limited success, as both negotiations and fixtures concluded remain short.
The 5,100 TEU ‘RHL FIDELITAS’ was linked to a period with CMA CGM on
private terms and ‘NORTHERN GUARD’ concluded USD 15,900 with Yang
Ming, albeit for a short time charter only. Despite limited actual demand
3,500 TEU tonnage also benefited from the upward movement and one
charterer reportedly paid in excess of USD 11,000 daily on a Shanghai
3,500 TEU design which is a significant step up from last done.
The segment between 2,000 and 3,000 TEU has recently enjoyed a high
activity level in Asia but we now also see improved conditions in the
Atlantic. One gearless 2,700 TEU achieved 8,500 daily for 2-3 months
period with ML who also extended the ‘EMS TRADER’ at USD 7,500, up
USD 500, for a 3-4 months period. Market conditions in Asia still appear
notably better with craned 2,500 TEU tonnage now aiming excess USD
9,000 with last done still being a VW 2,500 type which secured an
extension with PIL at USD 8,650 daily for 2-4 months East African trade.
E.R. Pusan - Flag LUX - BLT 2000 - 67,737 DWT
5,762 TEU - 4,185/HOM - 656 Plugs - Cellular - Gearless - 25.5/205.0
10-12 Months - Europe / Far East - ZIM - USD 18,975.00 /Day
Satie - Flag MTA - BLT 2006 - 39,359 DWT
2,824 TEU - 2,029/HOM - 586 Plugs - Cellular - Gearless - 23.0/104
3-7 Months - Med - Hapag-Lloyd - USD 8,000.00 /Day
Meta - Flag LIB - BLT 2001 - 39,128 DWT
2,732 TEU - 2,267/HOM - 450 Plugs - Cellular - Gearless - 22/86 - 15/38
1-2 Months - Med - Maersk Line - USD 8,500.00 /Day
Susanne Schulte - Flag SNG - BLT 2001 - 34,717 DWT
2,556 TEU - 1,850/HOM - 600 Plugs - Cellular - Geared - 21.9/87.0
Ext 6 Months - ECSA - Maersk Line - USD 10,500.00 /Day
Northern Endurance - Flag LIB - BLT 2001 - 33,838 DWT
2,468 TEU - 1,890/HOM - 320 Plugs - Cellular - Geared - 21.0/65.0 380
35-60 Days - Far East - MCC - USD 8,750.00 /Day
O. M. Agarum - Flag LIB - BLT 2008 - 27,130 DWT
2,015 TEU - 1,568/HOM - 510 Plugs - Cellular - Geared - 21.9/77.0
4-6 Months - NEA / Alaska - Maersk Line - USD 8,100.00 /Day
King Byron - Flag MAI - BLT 2007 - 24,150 DWT
1,706 TEU - 1,250/HOM - 300 Plugs - Cellular - Gearless - 20/50
Ext 6 Months - Med - Italia Marittima - USD 8,000.00 /Day
Activity was decent for tonnage between 1,200 – 2,000 TEU. In Asia,
Maersk Line fixed the high reefer 2,015 TEU ‘O.M AGARUM’ for USD 8,100
for 4 to 6 months. The rate appears firm, however the vessel will be
trading to Alaska. The Kouan 1800 type ‘BELGIAN EXPRESS’ was extended
again by UASC for 6 to 8 months at USD 7,850 which is a slight jump from
when she was last extended but not by the same margins we have seen in
other regions. The B170 type ‘RITA SCHEPERS’ extended for a further
WCSA round voyage with CCNI at USD 7,250. In the Mediterranean Italia
Marittima extended the Aker 1700 type ‘KING BYRON’ at USD 8,000 for a
further 6 months whist similar sized tonnage was also close to fixing at the
same levels which shows sign of improvements.
Warnow Chief - Flag CYP - BLT 2009 - 21,191 DWT
1,496 TEU - 1,100/HOM - 276 Plugs - Cellular - Gearless - 19.6/45
2-3 Months - Far East - Sea Consortium - USD 7,850.00 /Day
The segment below 1,200 TEU was littered with short term fixtures in the
Mediterranean which were the result of congestion in North Africa,
consequently tonnage on a spot/prompt basis has dried up although this
could well be just in the short term. On the continent MSC fixed to Ice
Classed ‘SAINTY VOGUE’ for a period of 12 months at USD 6,800 whilst
similar tonnage was fixing for short periods at low USD 6,000's. In Asia the
‘ASIATIC WAVE’ was fixed to PanAsia for 6 months at USD 8,500 which is a
good USD 300 improvement on what was being fixed a month or so ago.
We could expect to see some improvement here over the next few weeks
as we see a fair amount of uncovered demand.
Coneste - Flag ABB - BLT 2003 - 11,193 DWT
862 TEU - 585/HOM - 300 Plugs - Cellular - Geared - 18.5 / 37.7 ts
Ext 10 Months - Med - CMA CGM - USD 6,350.00 /Day
Cape Falster - Flag MAI - BLT 2005 - 16,397 DWT
1,200 TEU - 870/HOM - 150 Plugs - Cellular - Gearless - 19.0/45.0
2-3 Months - Med - Sea Consortium - USD 8,500.00 /Day
Asiatic Wave - Flag SNG - BLT 2007 - 12,560 DWT
1,147 TEU - 717/HOM - 232 Plugs - Cellular - Gearless - 19.0/43.0
5-7 Months - Far East - Panasia Shipping - USD 8,500.00 /Day
The above report is based on our best knowledge of relevant
market conditions and all fixtures reported are without guarantee
but stated in good faith.
Maersk Broker Time Charter Rate Index, Week 11
Average Container T/C Rates
1,800
Maersk Broker Container Index
1,600
Size
2014
2015YTD
4 Weeks MA
1,400
1,200
400-649
$4,688
$5,403
$5,673
1,000
650-899
$5,214
$5,294
$5,412
800
900-1,299
$6,915
$7,063
$7,028
600
1,300-1,999
$7,786
$7,899
$7,875
400
2,000-2,999
$7,321
$7,877
$8,193
200
3,000-3,949
$8,180
$8,659
$8,975
0
3,950-5,199
$9,228
$13,660
$15,503
February: 429
March: 466*
(*4 weeks Moving Average –The index is calculated on March 13th)
Trend
(short
term)
March 6, 2015 – March 13, 2015
Sale & Purchase
Newbuilding
The market continued to show a healthy level of activity this week. In the
further trading market a total of ten transactions were concluded, and
another four vessels were concluded for demolition. Despite a high level of
activity with 19 transactions so far this month, March 2014 offered an even
higher amount of activity the first two weeks of the month, with a total of
23 vessels being sold the same time last year.
The week offered three en-bloc transactions which were concluded, with the
1991 and 1992 built 4,600 TEU ‘ATLANTA EXPRESS’ and ‘HOECHST
EXPRESS’ sold for USD 7.5 mill each to Dubai based GMS, while the 2003
built 1,100 TEU ‘FRISIAN PIONEER’ and ‘ASIAN TRADER’ fetching USD 3 mill
each when sold to German buyers. The last en-bloc deal was for the 2005
and 2004 built 5,780 DWT MPP vessels ‘AMANDA’, ‘SOFIA’ and ‘AACHEN’
that were sold to German Owners HS Schiffahrts.
The 1700 TEU segment continued to attract interest with the 2001 built
1,700 TEU ‘MARIE SCHULTE’ being sold for approximately USD 5.15 mill to
Greek Owners Lomar. Comparing this with the sale of the 2000 built 1,700
TEU ‘AS SCOTIA’ back in August 2014 which went for USD 4.3 mill then the
prices remain steady in this segment. The last transaction of the week in the
further trading market was 2002 built 2,500 TEU ‘E.R. BREMERHAVEN’
bought by Greek Owners Goldenport for an undisclosed price.
This week, the container newbuilding market saw yet another LOI signed for
ultra large container vessels.
CMA CGM reportedly signed a LOI with Hanjin Heavy Industries for 3 x 20,000
TEU vessels to be built at Hanjin’s Subic facility. The vessels will be the first of
this size for Hanjin’s Subic facility and are slated for delivery within 2017. If
this LOI and those for 11,000 TEU mentioned earlier are made effective, the
yard in Subic will be covered until 2018.
The price of the vessels is thought to be between USD 140-145 mill, a discount
of at some 3-7% compared with prices from Korea based facilities with
experience building this size.
Looking ahead, we expect market activity to remain active with several deals in
the large and ultra large segments predicted to finalise around the end of the
month.
Wrapping up with the demolition market, the 1983 built 29,499 DWT MPP
vessel ‘YONG JIA MEN’ fetched a price of USD 365 per LTD, concluding the
transaction at USD 2.7 mill. Lastly the 1996 built 2,600 TEU ‘DIMITRIS Y’
was sold basis ‘as is where is’ Singapore for USD 4.2 mill, seeing a price of
USD 358 per LDT.
Estimated Second Hand Prices - 10 yrs old (USD Million)
Estimated Newbuilding Prices (USD Million)
1,100
1,700
2,700
4,500
1,800
2,800
4,800
6,600
9,200
14,000
6-7
9-10
12-13
14-15
28-30*
35-37*
51-53*
64-66*
88-90*
115-120*
26-28**
33-35**
49-51**
57-59**
84-86**
Price Development Since Last Week
Source: Maersk Broker
n.a.
Price Development Since Last Week
*
*
*
*
*
**
**
**
**
**
*
n.a.
Source: Maersk Broker
*based on Korean built vessel for 2016 delivery
**based on Chinese built vessel for 2016 delivery
Market Developments and Drivers
•
US: US retail sales fell for a third month in a row in February, suggesting American consumers remain wary of
splashing out in stores despite the rapidly improving job market and the windfall of tumbling fuel prices. But US small
business optimism edged up in February, bolstering the view that a recent slowdown in economic activity will be
temporary and outlook is still solid.
•
Euro Zone: Business sentiment in the Euro Zone surged to its highest level in 7-1/2 years in March, as the European
Central Bank's bond-buying program brushed off concerns about the economic turmoil in Greece.
•
China: China's exports picked up in the first two months of 2015, propelled by February's exceptionally strong
performance that was inflated by the timing of Lunar New Year. However, growth in retail sales and factory output in
January and February both fell to multi-year lows, indicating that the economy is still losing steam and in need of
further support measures.
•
Japan: Confidence at big Japanese manufacturers worsened in January-March and is seen turning negative in the
second quarter as a slumping yen ramped up the costs of raw material imports. This suggests the drawbacks of a weak
Yen may be outweighing its benefits, which have not spread to broader sectors of the economy.