In International Shipping News 02/06/2017
Although the idle container ship fleet is now standing at close to half a million Teu, spreading across most, if not all size bands, the idle vessels now represent only 2.5 per cent of the total container ship fleet. But even that doesn’t provide a lot of space for long-term optimism, mainly due to the limited fresh demand for additional tonnage in the market. In the meantime, scheduled vessel deliveries are believed to be more than enough to cover any immediate requirements in terms of tonnage in the near future. Once again, we expect the vessels within the classic Panamax size range to suffer the strongest pressure, mainly driven by redeliveries to take place in masses over the next few weeks. In parallel, removals through demolitions seem to have slowed down significantly during the last couple of weeks, with vessels sold for scrap during last month down by more than half compared to the first quarter average. This is both related to the scrapping prices, which didn’t manage to hold near USD 390 per Ldt for long, and the dynamic recovery experienced in the charter market since mid-March.
But without doubt, the market quickly realised during the last few weeks that this recovery has been steadily weakening. Confidence has been following the same path, as the current short supply of tonnage will not last for much longer, once redeliveries start taking place.
Moving to recent SnP transactions, the market’s interest has once again been dominated by smaller vessels, with all finalised deals to report this week referring to feeder-sized container ships.
The “SHIPPAN ISLAND” of 1.1 k Teu and built in 2005 was reported sold for USD 5.5 Mn to German interests (MPC Container Ships). The vessel is geared with two 45T cranes and her SS is due in Oct-20.
Two slightly smaller vessels of 960 Teu, the 2007-built “HOHEPLATE” and her sistership, the 2008-built “HOHEFELS”, both geared with two 45T cranes, have been sold for USD 4.8 Mn each.
The 1996-built “HYUNDAI FREEDOM” of 5.6 k Teu was sold for demolition at a price of USD 355 per Ldt or USD 8.12 Mn in total. As is Hong Kong.
Source: Fotios Katsoulas, Head of Affinity Research LLP
