Thursday, April 23, 2009

Dramatic drop in containership charter rates

Lloyds List has a nice article regarding MSC and the ships they have chartered in at rock bottom rates.

There has been much talk about the drop in charter rates for containerships.

This confirms it.

Here are the figures - from $45,000.00 per day,

down to $7,000 - $10,000 per day

In 2004, NYK fixed the Bellavia and Octavia at $37,750 per day, thought to be the most ever paid for that size ship and period, and then re-let the pair to China Shipping for 12 months at an even higher $45,000 per day.

Brokers have now confirmed ...(MSC) has chartered a series of 8,400 teu newbuildings for two years from German shipowner Norddeutsche Vermögensanlage, paying $10,000 a day for the first 12 months, and then $12,000 a day for the balance. Norddeutsche Vermögensanlage declined to comment.

At the same time, MSC has fixed a quartet of 5,000 teu vessels at just $7,000 per day for 12 months, from dates in the second and third quarters, with options for another year at $10,000 a day.

I'll bet the other container carriers, as well as ship owners, are really irritated by this action.

Everyone else is pulling out tonnage to reduce the oversupply, and MSC is using this opportunity to get cheap ships and increase their market share.

MSC is a privately owned company in Switzerland, but with roots in Italy. There isn't much out about their finances. They have always run a pretty low cost operation.

I remember some in the shipping community grumbling that MSC ran old rusty ships.
But how many people see the ships anymore? As long as they are structurally sound, does it matter if they are not all new and shiny?

No comments: