19 January 2023 (Lloyd's List) - SECONDHAND containership sales are on the increase as asset value normalisation is tempting buyers back to the sale and purchase market. Average boxship values have more or less halved since they peaked at record levels in the second quarter of last year, although remain between 20%-30% higher than they were before the pandemic. At the same time, sales volumes are presently at unseasonably high levels in historic terms. “January is not normally a very active month for containership sales however high activity levels suggests there are some shipowners out there that have an optimistic long-term view of the container sector — I’m quite surprised by the high activity levels we’re seeing before Chinese New Year,” a containership sale and purchase broker told Lloyd’s List. Recent transactions have been for older units which were built between 2000 and 2010 as most owners are holding on to more fuel-efficient ships that are less than 15-years-old. “Only ships of older vintage appear to be selling with pricing dependent on a vessel’s survey status as dry dockings are becoming increasingly expensive,” said the broker. “MSC has been active in January and they have been joined by several regional liner operators — but very few non-operating owners are buying unless there is a time charter attached to the sale.” Recycling sales have also risen since the beginning of this year with more tonnage demolished this month than in the whole of 2022. Recently reported scrap sales included the 1,748 teu capacity, 25-year-old, Vladivostok which has been sold by FESCO to Indian breakers for around $4m. Maersk is reported to have sold the 1,092 teu capacity Maersk Aberdeen to undisclosed buyers on an “as is” basis, with handover at a Middle East port. It represents the first containership to have been sold for demolition by this owner since 2020. The sale has not yet been confirmed by Maersk, however. Recently reported boxship sales for further service included the 2007-built feedermax G. Ace. This 2,553 teu vessel has been sold by Hong Kong owners to an undisclosed Chinese buyer for $13.7m. Other feedermax units reported as sold include the 2007-built, 2,546 teu capacity, Hammonia Reederei-owned Hammonia Berolina that has been sold to undisclosed owners, with a time charter to Maersk attached, for around “mid $20m”. MSC continues to mop up secondhand tonnage and has purchased the 21-year-old Buxcontact from Germany’s Conti Holding. This 2,478 teu capacity ship was bought for $7.7m. The same buyer has also purchased the 4,294 teu capacity, 2008-built, panamax Northern General from Norddeutsche Vermogen for around $20.5m. In the feeder sector, Turkish buyers have bought the 704 teu, 2006-built, Acacia Wa from Chinese owners for $9m, while the more modern, 2010-built, sister vessel Acacia Ming has been bought by Russia’s FESCO for $10m. Whether containership asset values will fall further this year is presently not certain. But with ship values tied far more to charter rates, which remain at highly profitable levels, rather than freight rates (which in some cases are now below cost levels) the likelihood of boxship values dropping much further look remote for now. “The gloomy global outlook has changed a bit recently — with energy prices down and subsequently inflation down I’m hesitant in being too negative about the container sector,” said the broker. “While this year will be fairly soft, we can see the view on the Chinese economy has been upgraded which could have a positive impact on the container market.”