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Weak demand for shipping companies increasing downward pressure on rents

Date:2011-07-27

  Shipping companies subject to low space utilization and greatly reduced demand, coupled with the summer off-season, container charter market in the past week recession speed.

  The current demand for shipping companies is very weak, especially in Europe and the Caribbean. According to brokers, most of the turnover from the Asian market. In Asia, 1000 TEU- 2000 TEU ship most sought after.

  Chartering a plurality of index continued to fall. Wherein, Braemar Seascope released this week BOXi index fell 1.95 points reported 94.65 points. Hamburg Brokers Association released new ConTex index fell by 655 points to 641 points a week ago. New ConTex index published twice a week, has posted 12 consecutive day drop.

  Traded on the market are mostly sublet. Mediterranean Shipping confirmed rented three 6500 TEU vessel from Hanjin office rent of $ 30,000 per vessel / day, eight-month lease. In addition, they also rented "APL Sydney" No. (built in 2006, 3530 TEU), 6 month lease, rent for $ 15,000 / day.

  According to legend, Simatech rented "Tatiana Schulte" No. (built in 2005, 2820TEU), 8-10 months lease, rent for $ 14,000 / day, the transaction also is sublet. In the post-Panamax container ship, the MSC is still the most active rental home, they rented "MSC Debra" number and "MSC Mara" number two 2006-built 5060 TEU vessels, each vessel rent 25,000 USD / day lease for 12 months.

  On the market for the large number of sublease ship, which continues to bring downward pressure on their prices. According to legend, Seacastle rented a 5100 TEU vessel 12 months of rent is only $ 18,000 / day, much lower than in a comparable transaction prices. This price also makes the broker shouted accident, because not long ago the same size but the age of the ship larger ships transaction price is more than that.

  Overall, rents fell the most powerful large boat. According to Hamburg Brokers Association presentation, 2700 TEU ship's biggest drop. Others, such as the 1700 TEU is showing a small boat better flexibility, even compared to a few weeks before the rent has fallen by about $ 1,000.

  Market uncertainty increased orders ship excess idle rhetoric is heating up again, but according to brokers, is not yet the owner to take this action.

  There are few shipping companies interested in chartering currently in negotiations with the owner of the apparently prevailed. They are now in no hurry to finalize a contract. Thus, charterers generally can lead to lower rents and more favorable terms. Last week, the flexibility clause to reproduce the rental home market is the outcome of this strategy is reflected.

  In addition, the charterers generally bearish attitude also makes shipping companies benefit. Later this year, promising substantial rents back up confidence is fading.

TypeInfo: Industry News