by Lloyd's List
29 January 2025 (Lloyd's List) - MEDITERRANEAN Shipping Co remains the most prolific buyer of secondhand containerships, having picked up almost a third — in capacity terms — of all boxships circulated for sale in 2024.
According to analysis by Alphaliner, a total of 333 containerships with a combined capacity of some 1.1m teu changed hands in 2024, up from 285 vessels of a combined 937,000 teu in 2023.
In 2024, MSC remained the most active buyer having snapped up 70 boxships with a combined capacity of 330,000 teu, Alphaliner said.
By the end of November 2024, MSC had bought 400 secondhand containerships since August 2020 when the world’s largest container line operator began its unparalleled vessel buying spree.
MSC’s purchases in 2024 comprised vessels of between 1,300 teu and 14,700 teu with the majority being picked up from tonnage providers.
Notable exceptions were three late 1990s-built 5,652 teu, “U-type” ships purchased from Taiwanese container line operator Evergreen. They added to two vessels of the same class, which MSC picked up from Evergreen in 2023.
While MSC has had a strategy of buying secondhand ships since its foundation in 1970, and only ordered its first newbuildings in the mid-1990s, the company has more recently sought to replace chartered tonnage with owned vessels.
Purchases in the past year are understood to be led by MSC’s need to fill gaps in its service network due to the ending of the “2M” alliance with Maersk.
Alphaliner note that the boxship sale and purchase market enjoyed a “robust year” in 2024, which was the third-strongest ever, as the sector benefited from strong freight rates and charter rates, as well as from a general optimism in the industry.
“Contrary to 2023, which saw a significant softening of prices throughout the year, ship values increased strongly in 2024, with some vessels changing hands in the last quarter at twice the price they could obtain at the beginning of the year,” said Alphaliner.
The world’s third-largest liner operator CMA CGM has also been active in buying up secondhand containerships, with 15 vessels purchased in 2024, slightly up on 2023 levels.
Other container line operators snapping up vessels from other owners in 2024 included South Korea’s HMM, which bought 10 secondhand ships and Turkish carrier Medkon Lines, which bought eight small feeders of up to 1,200 teu.
European tonnage providers were also highly active in the market and included Germany’s Peter Doehle, which bought six vessels including three 10,000 teu ships, while Oslo-listed MPC Container Ships purchased nine secondhand vessels.
Chinese shipowners were also very active with multiple purchases in the smaller and medium sizes.
“On the sellers’ side, the most active participants were German non-operating owners NSB and V Ships Hamburg, who sold 12 vessels each,” said Alphaliner, adding that the average age of ships sold in 2024 was 16 years.
The analyst reports that prospects for the containership sale and purchase market in 2025 is now dependent on geopolitical developments in the Middle East.
“The key question to know is when the Red Sea and Suez Canal route will be used again by container lines?
“Once the Suez route is again widely used, the market could take a different turn,” said Alphaliner.
With the prospect of 2m teu of newbuilding capacity due to be delivered in 2025, the return of overcapacity is a threat should demand fall short of 2024 levels.
“The secondhand sale and purchase market could take a hit with a rising number of candidates offered for sale and falling prices,” Alphaliner noted.
But any downturn should pave the way for older and less fuel efficient ships to head for recycling, leading to a much expected upturn in demolition sales.
