New Orders
Activity remained calm during this reporting period. Owners stay skeptical regarding further newbuilding investment choices. However[ds_preview], MSC has signed a letter of intent with China’s Yangzijiang Shipbuilding Group for up to 10 container vessels with a capacity of 12,000TEU each. The order covers seven firm scrubber-fitted vessels, priced at 91mill. $ each, with options for three more. The agreement was negotiated as a replacement for a series of ships by MSC who feared not being supplied by the competing Chinese yard Jinhai Intelligent Manufacturing. The yard is struggling to complete five containerships that MSC was to take on bareboat charter from SinOceanic Shipping.
Secondhand Sales
Activity for further trading vessels remained on a similar level as in the previous reporting period. While the amount of transacted panamax vessels declined, the number of transactions involving feeder ships increased. Noticeable: the sale of the 12-year-old »Hansa Marburg« to Bohai Shipping of China. The 1,740TEU vessel was acquired for 6.4mill. $. A further deal encompassed the three vessels »E.R. Yokohama«, »E.R. Vancouver« and »MSC Ningbo« (7,849TEU, 2004 Kora built). The London-based owner Global Ship Lease (GSL) paid a combined 48.5mill. $.
Demolition Sales
The previous weeks were silent ones for most of the recycling markets. Only ships with a capacity of less than 2,200TEU were sold for demolition. Scrap prices fell slightly and oscillated between 390$ and 470$ on the Indian sub-continent. Currently the Indian market leads the way as Prime Minister Modi’s general election win brought some renewed confidence back to the market. However, with the beginning of this year’s monsoon season slowly approaching, as well as public holidays in several Indian Sub-Continent countries taking place, it is not expected that market transactions will rise sharply during the coming weeks.
Jan Göldner
