Container Market – Weekly Report October 17 – October 24, 2014

October 17 – October 24, 2014
Container Market – Weekly Report
Chartering Market
Fixtures Reported This Week
The charter market continues to be active with additional tonnage
being taken in short term to cater for congestion issues in Africa and
in Asia. This has in general helped a number of spot vessels to finally
secure employment albeit at reduced charter rates.
DS National - Flag LIB - BLT 2001 - 80,494 DWT
6,479 TEU - 5,071/HOM - 700 Plugs - Hyundai 6000 - Cellular - Gearless - 26.40/240
6 Mnths - Period - Feast - MSC - USD 12,500.00 /Day
With the winter programme on the main east/west routes being
implemented, employment for post panamax tonnage appears
difficult and 8,000 TEU tonnage remain in spot positions. MSC was
linked to a fixture of the 6,500 TEU ‘DS NATIONAL’ for 6 months and
one 5,500 TEU was reported fixed on private terms. Panamax activity
and charter rates remain stable. Cosco concluded two 4,250 TEU for
5 months at USD 10,000 daily and China Shipping extended the
4,600 TEU ‘NORTHERN PROMOTION’ at USD 10,500 for 35-45 days.
The availability of panamax tonnage is however increasing and a
softening trend in charter rates appears inevitable.
We noticed a rather high activity level between 2,000 and 3,000 TEU
with PIL, ML and CMA CGM in particular being active in the market.
The majority of fixtures concluded remain in Asia. Gearless tonnage
around 2,700-2,800 remains in high demand but failed to secure
further lifts in charter rates as tonnage in competing segments
reduced their expectations and thus low USD 8's remains the
prevailing rate level. Geared tonnage was stable around USD 7,000
for periods passing the CNY. Despite improved activity for craned
2,500 TEU tonnage some owners were acting aggressively to secure
the limited employment opportunities and accepted numbers which
are essentially lower than their OPEX costs. If this continues it could
be a rather cold winter.
There was a feeling that rates for tonnage between 1,000-2,000 TEU
began to soften slightly, we noticed new market low's being fixed in
both the Med and Asia for certain sizes. The Caribbean however was
still holding firm with rates increases for particular types. In the
Mediterranean we saw Wenchong types fixed as low as USD 6,100 for
short and flexible periods. Maersk Line took the ‘HANSE
CLOPPENBURG’ for 1 to 4 months at this level. In Asia, whilst rates
were stable for 1,700 TEU types, the rates for CV1100 tonnage has
fallen by approx USD 100 to flat USD 6,000 for periods around 6
months, these levels are now being bettered in the Mediterranean
which is interesting. As eluded to above, in the Caribbean certain
types saw firming rates, the 1,341 TEU ‘RANJAN’ achieved USD 8,200
with Evergreen for 6 months charter, last done for this type was USD
8,000 for a similar period.
In Asia a couple of Daesun types were fixed/extended for a rates of
USD 8,300. This is actually a tick down on last done but more or less
the market level. With the softening of oil prices of late, it could
perhaps be argued that not so much emphasis will be placed on eco
types, thus a slight easing of rates is to be expected?? Elsewhere the
feeders below 1,000 TEU remained quiet; Sea Consortium extended a
Sietas 168 type for 4 to 7 months at USD 5,800.
Northern Promotion - Flag LIB - BLT 2010 - 59,483 DWT
4,616 TEU - 3,080/HOM - 470 Plugs - Daewoo 4600 - Cellular - Gearless - 23.0/144
35-45 Days - Extension - Feast / WCNA - CSCL - USD 10,500.00 /Day
Viktoria Wulff - Flag LIB - BLT 2006 - 58,260 DWT
4,542 TEU - 3,150/HOM - 700 Plugs - Cellular - Gearless - 24.8/152
20-40 Days - Period - Intra Asia - OOCL - USD 10,000.00 /Day
Aglaia - Flag LIB - BLT 2011 - 52,788 DWT
4,178 TEU - 2,882/HOM - 879 Plugs - CSBC 4200 - Cellular - Gearless - 24.5/155.0 mt
3-5 Mnths - Extension - Feast / NZ - COSCO - USD 10,000.00 /Day
Guenther Schulte - Flag HKG - BLT 2008 - 42,045 DWT
3,534 TEU - 2,353/HOM - 500 Plugs - Shanghai 3500 - Cellular - Gearless - 23.5/122.0
6-10 Mnths - Extension - Aussi / WCNA - Hapag-Lloyd - USD 8,500.00 /Day
Hedda Schulte - Flag CYP - BLT 2013 - 46,000 DWT
3,421 TEU - 2,450/HOM - 539 Plugs - MaxBox - Cellular - Geared - 22kn/99mt
9-10 Mnths - Extension - Feast / E Africa - CMA CGM - USD 8,500.00 /Day
Hammonia Antofagasta - Flag LIB - BLT 2008 - 35,534 DWT
2,872 TEU - 2,150/HOM - 746 Plugs - Zhejiang 2500 - Cellular - Gearless - 21.3/89.5
17-24 Days - Period - Continent - Evergreen - USD 8,000.00 /Day
Angeles - Flag LIB - BLT 2010 - 35,376 DWT
2,872 TEU - 2,116/HOM - 746 Plugs - Zhejiang 2500 - Cellular - Gearless - 21.3/89.5 8-10 Mnths - Period - Intra Asia - CMA CGM - USD 8,300.00 /Day
Cape Madrid - Flag MAI - BLT 2011 - 41,636 DWT
2,758 TEU - 2,269/HOM - 500 Plugs - Wenchong 2800 - Cellular - Gearless - 22.3/93.5
2-3 Mnths - Extension - Feast / E Africa - COSCO - USD 8,000.00 /Day
Anna-S - Flag ABB - BLT 2008 - 34,362 DWT
2,546 TEU - 1,900/HOM - 400 Plugs - Jiangsu 2500 - Cellular - Geared 3-6 Mnths - Extension - Feast / W Africa - PIL - USD 7,000.00 /Day
Saint Nikolaos - Flag MAI - BLT 2004 - 34,415 DWT
2,490 TEU - 1,868/HOM - 566 Plugs - SSW 25 - Cellular - Geared - 22.0/87.9
3-6 Mnths - Extension - Mediterranean / USEC - CMA CGM - USD 6,500.00 /Day
Santa Giannina - Flag LIB - BLT 1997 - 29,700 DWT
2,061 TEU - 1,585/HOM - 150 Plugs - FW 2000-T - Cellular - Geared - 19.5/50.7
3-6 Mnths - Extension - West Med / W Africa - CMA CGM - USD 6,900.00 /Day
Hansa Cloppenburg - Flag LIB - BLT 2007 - 23,396 DWT
1,740 TEU - 1,295/HOM - 300 Plugs - Wenchong 1700 - Cellular - Geared - 20.0/55
1-4 Mnths - Period - Intra Med - Maersk Line - USD 6,100.00 /Day
Viking Merlin - Flag LIB - BLT 2014 - 23,560 DWT
1,740 TEU - 1,295/HOM - 300 Plugs - Wenchong 1700 - Cellular - Geared - 19.5
1-3 Mnths - Extension - Intra Med - UFS - USD 6,250.00 /Day
Continued on page 3
Maersk Broker Time Charter Rate Index, Week 43
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
$4,637
$4,478
1,000
650-899
$5,252
$5,260
$4,927
800
900-1,299
$6,706
$6,874
$6,851
600
1,300-1,999
$7,342
$7,791
$8,164
400
2,000-2,999
$7,199
$7,270
$7,146
200
3,000-3,949
$7,794
$8,185
$8,236
0
3,950-5,199
$9,069
$8,987
$10,888
September: 404
October: 462*
(*4 weeks Moving Average –The index is calculated on October 24rd)
Trend
(short
term)







October 17 – October 24, 2014
Sale & Purchase
Newbuilding
Although the container further trading market remained at a high level
of activity, only one transaction was completed over the course of the
week. German owners Schulte received USD 11.5 mill for their 2007
built 3,534 TEU ‘GABRIEL SCHULTE’: the Shanghai 3,500 design takes
the number of vessels bought in 2014 by UK based Borealis, to
eleven. The deal revealed further pressure on the 3,500 TEU segment
when similar vessels was committed at USD 13 mill a few months
back.
Elsewhere in the market, we understand that two mid 2000’s Chinese
built Panamax units are currently under negotiation, and that a pair of
smaller 600 TEU vessels are committed via a bank deal. Finally, the
2,500 TEU segment remained interesting with a number of buyers
committing themselves to attractive deals.
There were no new orders concluded this week in the container
newbuilding market.
Since the beginning of October, a mere total of 11,600 TEU has been
added to the orderbook. These are seven feeder vessels, ranging from
1,400 to 1,800 TEU, to be built at Chinese and Korean yards for
delivery end 2015 and 2016.
Meanwhile, the large and mid-size container vessel segments have
recently been experiencing a lack of orders. However, a series of
projects for +14,000 TEU vessels are still likely to be concluded within
2014.
The cheap import of Chinese steel continued to suppress the activity
level in the demolition market. Similar to last week, no deals were
concluded this week, and it is believed to be due to the fact that end
buyers continue to hold back on their offers because of the cheaper
alternatives currently existing on the market. In India, the market has
seen a complete change from the bullish sentiment that characterized
the third quarter. The commencement of the Diwali holidays, along
with a sudden depreciation of the Indian Rupee and falling scrap steel
prices, has resulted in a very quiet week on the Subcontinent.
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
*
**
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: U.S. Manufacturing Purchasing Managers Index (PMI, an index to measure economic activity) slipped to 56.2 from
the reading of 57.5 in September (a reading above 50 signals expansion in economic activity). Thus, it is still at a very
high level.

EU: The Eurozone saw a marginal upturn in the growth of business activity in October. PMI rose from September’s tenmonth low of 52.0 to 52.2. However, the index remained below the average seen in the third quarter, and was the
second-weakest reading seen so far this year.

China: The overall picture for the Chinese economy remains that growth is slowing. This is mainly driven by weaker
investment demand in the wake of slower credit growth. China’s GDP growth slowed in Q3 to 7.3% y/y from 7.5% y/y
in Q2. The HSBC PMI declined marginally to 51.4 from 51.5 with both declined “domestic new orders” and “export
orders”. This indicates that there will still be moderate downward pressure on the manufacturing PMI in the coming
months.

Japan: Japanese manufacturing activity expanded in October at the fastest pace in seven months as domestic and
overseas orders increased. It suggests that growth in Japan is again picking up pace after disappointing growth in Q2
and Q3 in the wake of the consumption tax hike in April.
October 17 – October 24, 2014
Clipper - Flag ABB - BLT 2008 - 23,831 DWT
1,702 TEU - 1,240/HOM - 330 Plugs - Aker cs 1700 - Cellular - Gearless 20.5/67
4-6 Mnths - Extension - Intra Med - Italia Marittima - USD 7,500.00/Day
Sanya - Flag SNG - BLT 1999 - 24,327 DWT
1,560 TEU - 1,218/HOM - 200 Plugs - Imabari 1500 - Cellular - Gearless 18.5/45.0
5-6 Mnths - Period - Intra Asia - COSCO - USD 7,300.00 /Day
Kuo Hung - Flag PAN - BLT 1997 - 18,595 DWT
1,405 TEU - 1,120/HOM - 42 Plugs - CSBC 1100 - Cellular - Gearless 18.2/35.0
5-8 Mnths - Period - Intra Asia - OOCL - USD 8,700.00 /Day
Ranjan - Flag ABB - BLT 2008 - 17,215 DWT
1,341 TEU - 925/HOM - 470 Plugs - MRC 1100-II - Cellular - Geared - 20.0/52
6 Mnths - Extension - Caribbean Sea / WCSA - Evergreen - USD 8,200.00 /Day
Warnow Vaquita - Flag ABB - BLT 2008 - 18,343 DWT
1,284 TEU - 975/HOM - 390 Plugs - Cellular - Gearless - 19.6/45
6-8 Mnths - Period - Continent Trade - CMA CGM - Private Rate
Asiatic Wind - Flag SNG - BLT 2008 - 12,500 DWT
1,147 TEU - 717/HOM - 232 Plugs - Orskov Mark XI - Cellular - Geared 19.0/43.0
6-8 Mnths - Extension - Intra Caribs - Tropical Shipping - Private Rate
Maren S - Flag ABB - BLT 2005 - 13,839 DWT
1,118 TEU - 700/HOM - 220 Plugs - CV 1100 Plus - Cellular - Geared 19.6/38.5 if 380
4-6 Mnths - Period - Intra Asia - Hanjin Shipping - USD 6,000.00 /Day
Paola - Flag ABB - BLT 2005 - 13,879 DWT
1,118 TEU - 700/HOM - 220 Plugs - CV 1100 Plus - Cellular - Gearless 19.2/44.0
3-5 Mnths - Period - Intra Asia - TS Lines - USD 6,000.00 /Day
El Toro - Flag HKG - BLT 2006 - 13,633 DWT
1,114 TEU - 700/HOM - 220 Plugs - CV 1100 Plus - Cellular - Geared - 19.5/36
6-8 Mnths - Extension - Intra Med - CMA CGM - USD 6,100.00 /Day
Halcyon - Flag BAH - BLT 2007 - 12,480 DWT
1,102 TEU - 700/HOM - 180 Plugs - Murakami 1100 - Cellular - Gearless - 19 /
38
3-6 Mnths - Period - Intra Asia - Puhai - USD 8,150.00 /Day
Alice - Flag ABB - BLT 2005 - 12,827 DWT
1,043 TEU - 655/HOM - 180 Plugs - Dae Sun 1000 - Cellular - Gearless 18.0/33.0
12 Mnths - Period - Intra Asia - Hanjin Shipping - USD 8,325.00 /Day
Reecon Whale - Flag MTA - BLT 2011 - 12,513 DWT
1,022 TEU - 607/HOM - 314 Plugs - Cellular - Geared - 19.0/33.5
3-5 Mnths -Period - Intra Med - Naviera - USD 6,400.00 /Day
Annika - Flag LIB - BLT 2008 - 11,814 DWT
982 TEU - 603/HOM - 180 Plugs - Dae Sun 1000 - Cellular - Gearless - 18.0/33
3-5 Mnths - Extension - Intra Asia - KMTC - USD 8,300.00 /Day
Heinrich Sibum - Flag ABB - BLT 2007 - 11,821 DWT
957 TEU - 604/HOM - 252 Plugs - Zhejiang 950 - Cellular - Geared - 18.8/37
4-6 Mnths - Extension - Intra Caribs - Sea Consortium - USD 6,750.00 /Day
Allegro - Flag ABB - BLT 2004 - 11,388 DWT
868 TEU - 600/HOM - 150 Plugs - Sietas 168b - Cellular - Gearless 18.0/33.0
4-7 Mnths - Extension - Intra Med - Sea Consortium - USD 5,800.00 /Day
Sophia - Flag ABB - BLT 2008 - 8,166 DWT
698 TEU - 425/HOM - 120 Plugs - Cellular - Gearless - 17,5 / 32
4-6 Mnths - Extension - Continent Trade - MacAndrews - USD 4,500.00 /Day
Ice Star - Flag ABB - BLT 2008 - 8,143 DWT
698 TEU - 441/HOM - 120 Plugs - Mawei 437 II - Cellular - Gearless - 17/26
7 Days - Period - Intra Asia - Asean Seas Line - USD 4,900.00 /Day
Fortunia - Flag ABB - BLT 1996 - 6,871 DWT
The
above -report
our -best
knowledge
543 TEU
- 330/HOM
87 Plugsis- based
B-184 - on
Cellular
Geared
- 17.0/26.0 of relevant market conditions and all fixtures reported are without
guarantee
4-6 Mnths - Extension - Intra Med - Sea Consortium - USD 5,350.00
/Daybut 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.