October 10 – October 17, 2014 Container Market – Weekly Report Chartering Market Fixtures Reported This Week Charter market activity was quite high this week with more than 60 transactions reported. Whilst the majority were extensions, Charterers are indeed taking additional tonnage on short term for Intraasia and West Africa trades, and we have seen quite a number of spot ships disappearing for employment this week. K Phoenix - Flag PAN - BLT 2003 - 80,270 DWT 6,492 TEU - 4,756/HOM - 500 Plugs - Imabari 6500 - Cellular - Gearless 25 5-6 Mnths - Period - Feast - MSC - USD 13,100.00 /Day The post panamax segment remains slow in the spot market with only Hapag-Lloyd and MSC taking in tonnage this week. The 6,500 TEU 'K PHOENIX' was linked to a short 5-6 months charter with MSC in the low USD 13,000, whereas the 5,500 TEU 'ZANTE' fixed a 18-24 months charter in the Atlantic which is rumoured to be around USD 15,000. Forward positions in the 8-9,000 TEU segment are seemingly attracting some interest with a few under negotiation and the amount of enquiries gradually increasing. Panamax activity was reduced and continues to be dominated by short term business only. CSCL was linked to the 4,300 TEU 'NORTHERN GENIUS' at a reasonably strong USD 10,700 daily. Demand for 3,500 TEU tonnage was up compared to previous weeks. ML extended a couple of geared 3,500 TEU vessels for 9-11 months in mid USD 8's and the 'STADT AACHEN' secured a strong USD 8,900 daily from NYK for 4-7 months. The segment between 2,000 and 3,000 TEU enjoyed some welcome relief this week with a number of 2,500 TEU vessels securing employment after a fairly long waiting time. Some owners grabbed the opportunity and secured employment albeit at numbers in the very low USD 6's. The market in Asia was more stable and tonnage was concluded between USD 6,900 and USD 7,000 for shorter round voyages. A couple of vintage 2,800 TEU sisters ‘HANSA CENTURY’ and 'HANSA CONSTITUTION' was extended by MSC at USD 7,200 daily. In general the positive trend for the modern tonnage seems to continue as a number of deals are still on subjects at levels well above USD 8,000. Between 1,000 – 2,000 TEU activity was good and in line with the last weeks. Noteworthy, are in particular the fixtures of two newbuildings - the g'less Ou Hua built 'NORDCHEETAH' to TS Lines at USD 11,600 for 6-9 months and the geared Wenchong newbuilding 'ST JOHN' at around USD 10,850 with CMA for a 6 months charter. The rate difference can be attributed to the Ou Hua design's higher homogeneous intake and the preference for gearless feeders in the Intra Asia trades. Far Shipping secured the B170 'CAMILLA' for up to 6 months at USD 7,250 which is in line with last done. The 1,400 TEU segment remains stable in FEAST with ‘WARNOW CHIEF’ and sister fixing USD 7,350. In the MED, Hapag-Lloyd covered their requirement by fixing the ‘HANSA LIMBURG’ at a low USD 6,250 for 3-8 months, underlining the unfortunate negative trend in the Atlantic for this size. The 1,100 TEU segment was not as active as the previous weeks, but it appears there is a slight positive tendency in Asia with 2-Stroke CV 1100 ‘OTANA BHUM’ fixing a tick above last done at USD 7,700 for 8-12 months with TS Lines. Below 1,000 TEU activity appeared to be on the up. In Asia, the 990 TEU 'MEDBOTHNIA' obtained USD 6,000 for up to 6 months with TS Lines, a sister was also concluded at similar levels. Further we noted that the ‘RUNA’ fixed at USD 4,650 with Sinokor for 6-8 months. A positive trend is that Charterers now prefer to commit to longer and less flexible period for these sizes. In Europe, the feeder segment remains oversupplied with rates under downward pressure. Zante - Flag LIB - BLT 2002 - 67,164 DWT 5,576 TEU - 4,300/HOM - 480 Plugs - Imabari Millenium - Cellular Gearless - 25/195 18-24 Mnths - Period - Med / USG - Hapag-Lloyd - Private Rate Northern Genius - Flag LIB - BLT 2008 - 53,874 DWT 4,319 TEU - 2,816/HOM - 600 Plugs - Hyundai Super 37 - Cellular Gearless - 24.0/133.6 80-100 Days - Extension - Feast /USWC - CSCL - USD 10,700.00 /Day Stadt Aachen - Flag ABB - BLT 2007 - 44,145 DWT 3,398 TEU - 2,460/HOM - 300 Plugs - Hanjin 3400 - Cellular - Gearless 22.5/105 380 4-7 Mnths - Extension - Far East / USWC - NYK - USD 8,900.00 /Day Hansa Constitution - Flag GEU - BLT 1997 - 34,954 DWT 2,810 TEU - 2,070/HOM - 303 Plugs - BV 2700-C - Cellular - Gearless 22.5/95.0 6-7 Mnths - Extension - Intra Asia - MSC - USD 7,200.00 /Day Penelope - Flag ABB - BLT 2008 - 38,635 DWT 2,732 TEU - 2,040/HOM - 400 Plugs - Gdynia 8184 - Cellular - Geared 22/85 3-6 Mnths - Extension - Med / W Africa - CMA CGM - USD 7,250.00 /Day Leo Perdana - Flag PAN - BLT 2007 - 33,423 DWT 2,553 TEU - 1,897/HOM - 250 Plugs - Naikai 2500 - Cellular - Gearless 21.6/86.9 6 Mnths - Extension - Intra Asia - Evergreen - USD 7,250.00 /Day Johannes-S - Flag ABB - BLT 2008 - 34,330 DWT 2,546 TEU - 1,905/HOM - 536 Plugs - Jiangsu 2500 - Cellular - Geared - 22 80-100 Days - Extension - Feast / W Africa - PIL - USD 6,900.00 /Day Wehr Elbe - Flag MAI - BLT 2001 - 33,657 DWT 2,524 TEU - 1,895/HOM - 400 Plugs - CV 2500 - Cellular - Geared 21.7/74.0 3 Mnths - Extension - Med / W Africa - Nile Dutch - USD 6,750.00 /Day Rio Ardeche - Flag LIB - BLT 2006 - 34,409 DWT 2,490 TEU - 1,865/HOM - 370 Plugs - SSW 25 - Cellular - Geared 22.0/87.5 1-4 Mnths - Extension - USG / Caribs - CMA CGM - USD 8,000.00 /Day Wehr Bille - Flag MAI - BLT 2002 - 33,739 DWT 2,474 TEU - 1,874/HOM - 400 Plugs - VW 2500 - Cellular - Geared 22.0/74.0 80-100 Days - Extension - Far East / W Africa - NYK - USD 7,375.00 /Day Continued on page 3 Maersk Broker Time Charter Rate Index, Week 42 Average Container T/C Rates 1,800 Maersk Broker Container Index 1,600 Size 2013 2014YTD 4 Weeks MA 1,400 1,200 400-649 $4,792 $4,625 $4,450 1,000 650-899 $5,252 $5,256 $4,755 800 900-1,299 $6,706 $6,881 $6,879 600 1,300-1,999 $7,342 $7,788 $8,082 400 2,000-2,999 $7,199 $7,267 $7,082 200 3,000-3,949 $7,794 $8,182 $8,378 0 3,950-5,199 $9,069 $8,958 $10,839 September: 404 October: 447* (*4 weeks Moving Average –The index is calculated on October 17rd) Trend (short term) October 10 – October 17, 2014 Sale & Purchase Newbuilding Another week has passed with high levels of activity coupled with low levels of confirmed sales. This week there were no transactions, however pressure on 2,500 TEU prices continues to mount, interest in this segment has been widespread over the past week, a number of transactions have been fixed and subsequently failed, while a handful remain on subjects. Additionally, interest in modern tonnage has spiked over the past week, and it is believed that a number of units are currently under negotiation/inspection in a number of feeder segments. This week, activity in the container newbuildings market once again failed to pick up, although an order for 1,700 TEU vessels, originally placed in February this year, was reported. In the demolition markets, the usual post-Eid surge of demand from Pakistani buyers did not materialise due to the availability of cheap Chinese scrap steel imports. Furthermore, there are concerns that such imports will affect markets across the subcontinent. Indian buyers have already begun to show reluctance in terms of buying new tonnage, resulting mainly from the upcoming Diwali holidays coupled with the extreme volatility we have seen recently in the market of late. Ouhua is currently building 16 x 1,700 TEU vessels for Reederei Nord with the first three having already been delivered in May, June and September this year. Estimated Second Hand Prices - 10 yrs old (USD Million) Hong Kong-based Mandarin Shipping are believed to have a total of 6 x 1,700 TEU vessels on order at Ouhua for a price of USD 26 mill. It is believed four vessels were placed in February and there have been another two units added to the Chinese yard’s orderbook since, with a further option for two yet to be declared. We expect the market to continue at its current slow pace for the coming weeks. 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 * ** Price Development Since Last Week * * * * ** ** ** ** n.a. * 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: That the US is in the phase of slowing growth was evident with the release of retail sales for September. Headline sales fell 0.3% m/m. After a period of very strong retail sales, we now see moderation. This is a quite normal pattern in the US. However, it creates fears that the US is slowing more than expected and that the US is ‘falling down’ to the rest of the world rather than the rest of the world catching up with the US. As the US has been seen as the last pillar of strength in the global economy it adds to concerns over the state of the global economy. EU: Berlin has slashed its growth forecast for this year (to 1.8 per cent) and the next (to 2 per cent), a move that highlights the government’s mounting concerns about the impact of stagnation in the Eurozone, geopolitical crises in Ukraine and the Middle East and a slowdown in emerging markets on the German economy. China: Chinese foreign trade data surprised positively in September. Chinese exports grew at their fastest pace in 19 months in September, rising 15.3 per cent from a year ago, according to official customs data published on Monday. The rebound in exports was partly due to a low base in September last year, although it also signaled some improvement in growth in developed economies, particularly the US. Thus, contradicting or moderating the negative economic signals seen elsewhere. October 10 – October 17, 2014 Glory - Flag ABB - BLT 1996 - 30,300 DWT 2,080 TEU - 1,670/HOM - 200 Plugs - Gdynia 2000 - Cellular Geared - 21.0/72.0 5-7 Mnths - Extension - Aussi / NZ - MSC - USD 7,000.00 /Day Niara - Flag SNG - BLT 1999 - 29,266 DWT 2,011 TEU - 1,599/HOM - 204 Plugs - Imabari 1900 - Cellular Geared - 20/66 3-4 Mnths - Period - Intra PG - Sea Consortium - USD 7,300.00 /Day As Pegasus - Flag MTA - BLT 1998 - 29,229 DWT 1,835 TEU - 1,392/HOM - 325 Plugs - 8138 Astro L - Cellular Geared - 21.0/69.5 4-8 Mnths - Period - Intra Med - CMA CGM - USD 6,575.00 /Day Hansa Limburg - Flag LIB - BLT 2006 - 23,447 DWT 1,740 TEU - 1,330/HOM - 300 Plugs - Wenchong 1700 - Cellular Geared - 20.5/64 3-8 Mnths - Period - Intra Med - Hapag-Lloyd - USD 6,250.00 /Day Medbothnia - Flag CYP - BLT 2008 - 11,900 DWT 990 TEU - 621/HOM - 254 Plugs - CV 1000 - Cellular - Gearless - 18.8/37 4-6 Mnths - Extension - Intra Asia - TS Lines - USD 6,000.00 /Day Ds Blue Ocean - Flag LIB - BLT 2007 - 8,200 DWT 698 TEU - 443/HOM - 120 Plugs - Mawei 437 II - Cellular - Gearless 17.5/33 6-8 Mnths - Extension - Intra Med - CMA CGM - USD 4,600.00 /Day Runa - Flag CYP - BLT 2006 - 8,200 DWT 672 TEU - 415/HOM - 116 Plugs - Peters 650 - Cellular - Gearless - 17/24 3-6 Mnths - Period - Intra Asia - Sinokor - USD 4,650.00 /Day Missunde - Flag ABB - BLT 2003 - 8,015 DWT 657 TEU - 390/HOM - 116 Plugs - Peters 650 - Cellular - Geared 17.5/26.8 5-6 Mnths - Extension - India Trade - MSC - USD 5,550.00 /Day Camilla - Flag GIB - BLT 1996 - 23,045 DWT 1,728 TEU - 1,125/HOM - 200 Plugs - B170 - Cellular - Geared 20.0/54.5 5-7 Mnths - Period - Far East / India - Far Shipping Lines - USD 7,250.00 /Day St John - Flag MTA - BLT 2014 - 21,900 DWT 1,705 TEU - 1,230/HOM - 296 Plugs - Cellular - Gearless - 19.5L 6 Mnths - Period - Intra Asia - CMA CGM - USD 10,850.00 /Day Nordcheetah - Flag MTA - BLT 2014 - 23,800 DWT 1,700 TEU - 1,390/HOM - 350 Plugs - Cellular - Gearless - 18.5L 6-9 Mnths - Period - Intra Asia - TS Lines - USD 11,600.00 /Day Cremon - Flag MAI - BLT 2000 - 21,549 DWT 1,679 TEU - 1,230/HOM - 194 Plugs - Hanjin 1600 - Cellular Gearless - 20.5/61.0 4-6 Mnths - Extension - Intra Asia - KMTC - USD 9,000.00 /Day Warnow Chief - Flag CYP - BLT 2009 - 21,191 DWT 1,496 TEU - 1,100/HOM - 276 Plugs - CV Neptun 1500 - Cellular Gearless - 19.6/45 4 Mnths - Extension - Intra Asia - OOCL - USD 7,350.00 /Day Noble Breeze - Flag SVC - BLT 1997 - 14,155 DWT 1,162 TEU - 722/HOM - 96 Plugs - B183L - Cellular - Geared 17.0/30.5 4 Mnths - Period - Intra Asia - OEL - USD 6,700.00 /Day Otana Bhum - Flag SNG - BLT 2008 - 13,883 DWT 1,118 TEU - 700/HOM - 200 Plugs - CV 1100 Plus - Cellular Gearless - 20.0/41.0 8-12 Mnths - Extension - Intra Asia - TS Lines - USD 7,700.00 /Day Meratus Minahasa - Flag IDA - BLT 1999 - 12,012 DWT 1,115 TEU - 693/HOM - 212 Plugs - Orskov Mk VII - Cellular Geared - 10kts 13.5mt 3-4 Mnths - Period - Intra Asia - OEL - USD 5,600.00 /Day Vega Omega - Flag LIB - BLT 2006 - 13,639 DWT 1,102 TEU - 700/HOM - 220 Plugs - CV 1100 Plus - Cellular - Geared - 19.4/37.0 5-7 Mnths - Extension - Intra Med - MSC - USD 6,250.00 /Day Wes Carina - Flag ABB - BLT 2011 - 13,200 DWT 1,036 TEU - 745/HOM - 250 Plugs - SSW S1000 - Cellular - Gearless - 18.5/36 14-21 Days - Period - Continent Trade - BG Freight - EUR 6,150.00 /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. This report is based on our knowledge of relevant market conditions. Our estimates are made on the basis of this knowledge, but other circumstances, or new circumstances, as well as general uncertainty could cause the market to develop differently. We take general reservation for misprints. © All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing it in any medium by electronic means) without the written permission of the copyright owner. Likewise, any quoting is prohibited without the written permission of the copyright owner.
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