Chartering
Chartering activity remains robust and in line with what we have already monitored during the whole summer period which is slowly coming to an end. Several local holidays across the globe did not reduce the number of fixtures concluded and gives enough pasture for the market participants to talk about and to evaluate the market direction for the coming weeks. Nothing new was reported in the post-Panamax segment despite operators seeing an increase of firm vessels coming available. Only some months ago such vessels would have received plenty of interest with owners able to choose who they would prefer to do business with. In the smaller Panamax segment, two sublets were linked to have been fixed for short employment but details were not fully disclosed.In the sub-Panamax segment and as indicated in our last week’s report with a desiccated tonnage market in the Atlantic, theHyundai 2800 ‘MONTPELLIER’ (2,824 TEU, gearless, built 2006, Hyundai Mipo) is said to have fixed an 11 to 14 months employment with COSCO at a rate of $16,000, but with the vessel having to reposition into the Mediterranean from Middle East although the vessel has not set sail yet. The same owner was also linked to having fixed a sister vessel but scrubber fitted for a similar duration with positioning from South East Asia into the Mediterranean for Hapag Lloyd. With periods offered in the Pacific being in most cases rather short and flexible, owners are showing a willingness to reposition their assets based on gaining longer period coverage elsewhere.
Once more, the Feeder sector below 2,000 TEU, remained lively with numerous extensions and fixtures being concluded, while others are still under discussion. Simultaneously, the number of vessels available for employment in the upcoming 1 to 2 months is further increasing. Operators are currently aiming to minimise periods, and to keep them short and flexible, given the illustrated unflattering trend. However, longer durations have been observed as well in some cases where operators are willing to secure the right tonnage for longer periods.
CMA CGM was linked to having secured the eco newbuilding Wenchong 1900 type ‘CAPE BONAVISTA’ (1,932 TEU, gearless, built 2023, Guangzhou Wenchong) for its maiden trip for a flexible period of 2 to 6 months at $12,500 trading within the Far East only. In the Atlantic, Maersk Line secured the geared, high reefer, Hyundai 1800 ‘GARWOOD’ (1,841 TEU, geared, built 2008,
Hyundai Mipo) for a firm period of 10 to 12 months at $14,500 with her drydock freshly passed at the end of the month. The German built Hegemann 1400 type ’CAPE FLINT’ (1,440 TEU, gearless, built 2006, Peene Werft) prolonged its charter for a short period of 1 to 2 months at $ 10,850 with X-Press Feeders whereof the vintage ‘AEGEAN EXPRESS’ (1,439 TEU, gearless, built 1997, CSBC Corp.) was extended by Summit Shipping Line for another 3 to 4 months at $9,000 for its newly organized service with both vessels trading within the Far East.Several smaller vessels in the 1100 TEU across the globe were fixed with details being kept private although the development of what is being talked about is reconfirming the decreasing trend which does not surprise and is in line with what has been witnessed across all segments during the recent weeks.
S and P
Second-hand activity is still having to deal with both the Summer and a wide bid-offer spread across most of the market.The headline transaction of the week was the sale of a package of charter-attached vessels by Lomar, namely the OOCL ST. LAW-RENCE (5,047 TEU, built 2005 Hyundai H.I.) with TC to OOCL until Q2 2025 and two 3,200 TEU CSBC-built vessels with TC attached to Hapag Lloyd to Europe-based Buyers.
In general and quite unsurprisingly, prices are eroding. However, the decline in charter periods and prices have not fully translated across to asset prices. This has led to hesitancy on the part of Buyers, whom conclude that the prices will continue to trend down-ward if September disappoints.
Feeder vessels built in the 90s continue to struggle to attract trading interest but there is admirably stable enquiry for everything built in or post 2000. Whilst tramp owners continue to hold onto their older tonnage for the time being, demolition activity rolls on with liner companies continuing to push tonnage still with good class positions to the breakers for capacity management purposes.
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