23 June 2023 (Lloyd's List) - MEDITERRANEAN Shipping Co is continuing on its quest to expand its feeder vessel fleet and has been linked to several purchases of secondhand boxships of between 1,700 teu and 2,800 teu capacities in the past fortnight.
“While prices are mostly trending sideways, the week saw a considerable amount of transactions in the feeder sector. In terms of a single buyer, MSC was noted going down a well-trodden path and emerging as most active, having been connected to transactions on a number of 2,800 teu, 2,700 teu, 2,500 teu and 1,700 teu,” said shipbroker Braemar.
Recent purchases by the world’s largest containership operator include the 2,742 teu Northern Vigour. This 2005-built, feedermax-class vessel was purchased from German non-operating owner NSH Northern for $17m.
MSC has also been reported by brokers to have purchased the geared, 20-year-old, 2,450 teu Ella from Germany’s Ernst Russ for $14m.
The company is now understood to have purchased some 310 containerships via the secondhand market in the past three years.
MSC recently sold its eighth containership this year for recycling. The 34-year-old MSC Nicole has been purchased by a Hong Kong Convention-compliant Indian recycler for $521 per light displacement tonne. This 2,073 teu vessel was purchased by MSC from Netherlands-based owners in 2000.
Secondhand boxship purchases by other buyers recently included the 3,534 teu capacity sister vessels Northern Defender and Northern Dedication. These 2007-built ships have been sold by German owners to Global Feeder Shipping of Dubai for around $17.5m apiece.
Qatar’s Milaha has declared a purchase option on its chartered 1,795 teu Mellum. This 2010-built ship is being sold by Briese Schiffahrts of Germany for $12m.
The sale price was negotiated on the commencement of its charter at the beginning of this year. However, the values of containerships have risen since the second quarter of 2023 and this means that the vessel was sold below current market value.
While containership values have been stable since March, following market corrections from the second half of last year, Braemar said that there are “some signs” of downward pressure building on prices of panamax units of between 4,000 teu and 5,000 teu capacities.
“This echoes growing resistance on the charter market on the part of operators to commit to two-year charter periods at rates in line with last done.”
Meanwhile, enquiries from Chinese buyers for panamax tonnage appear to be growing “so it remains to be seen whether this interest is sufficient to hold up asset prices,” noted Braemar.
