Sunday, October 1, 2023
HomeAnalysisMajor carriers remain on hunt for tonnage to boost market share


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Major carriers remain on hunt for tonnage to boost market share

Led by MSC and CMA CGM, ocean carriers are again scouring the charter and sales and purchase markets for tonnage to boost capacity and increase their market share.

With demand prospects improving, especially for the second half of the year, and freight indices showing weekly gains, some carriers are using the huge cash reserves accumulated over the past two years to bolster their networks and gain a commercial advantage over more conservative lines.

According to Maersk Broker’s weekly report, in the past two weeks the second-hand containership market has experienced “probably the highest level of activity seen in almost a year”.

“The main driver seems to be the race for market share for some of the biggest liners, with MSC still leading the charge with continued purchases,” it says.

“Where we, at the start of the year, only saw MSC and various Chinese companies as buyers, they have now been joined by a large group of other liner operators.”

MSC’s latest swoop on the S&P market, to add to its armada of more than 300 second-hand ships acquired since August 2020, is the 20-year-old 6,078 teu Lisbon, reportedly purchased for $22.5m.

Meanwhile, London shipbroker Braemar’s list of 13 representative containership charter fixtures finalised in the past week includes seven vessels taken on hire by French carrier CMA CGM.

“The buzz in the container chartering market continued,” says Braemar’s report today. It says only the dearth of supply of open tonnage is preventing more fixtures, “with the scarce supply side not providing many options for operators to cover their requirements”.

A broker contact told The Loadstar they had “a long line of charterers” requiring tonnage, adding: “They don’t seem to be put off by the age of the ship, or that they may have unexpired charters.”

Among the charters concluded by CMA CGM was the 2015-built, 2,339 teu geared Minerva, leased for 42 months for trading in the Caribbean at a daily hire rate of $15,000. It also managed to secure the 2,202 teu 2017-built Cape Quest for 11-13 months at $20,500 a day for delivery in North Asia.

OOCL has joined the capacity race by fixing the 2010-built 4,256 teu Androusa for 12-24 months at $23,900 a day. And Braemar said Hapag-Lloyd’s two-year charter of the 2015-built 5,466 teu Wide Juliet, starting in Q4 at $25,000 a day, has also been confirmed.

According VesselsValue data, the wide-beamed vessel, owned by Danaos, is currently on hire to Hapag’s THE Alliance partner, Japanese carrier ONE, only earning $19,950 a day, evidence that the Greek owner appears to be having no difficulty finding new fixtures for its ships before their existing charters expire, at increased daily hire rates.


Related Posts


Finance & Economy
Shipping News

Sphinx Investment Corp Increases Stake in OceanPal

On September 28, 2023, an OceanPal SEC filing revealed that Sphinx Investment Corp. had raised its ownership in OceanPal, now holding a substantial stake...

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

Trafigura announces executive leadership changes

Trafigura Group Pte Ltd. has announced an evolution of its executive team to further strengthen leadership and focus across its global activities during a...

Woori, HMM, KOBC to buy Polaris in prospective $448 mln deal – report

Polaris Shipping Co. is poised to sell its entire stake at around 600 billion won ($447.5 million) to Woori Private Equity Asset Management Co....

Pyxis Tankers Announces Closing of Ultramax JV Investment

Pyxis Tankers, an international shipping company, reported that on September 14, 2023, the Company closed on its previously announced newly formed drybulk joint venture...

Baltic index snaps 4-day winning streak as capesize rates slip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index scales 11-month peak on strong capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index scales over 9-month high on capesize surge

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index rises to over 4-month high on stronger capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Houston-Japan VLGC freight rates reach multi-year high

VLGC freight rates from Houston to Chiba, Japan, reached $245/mt Sept. 21 for the...

Piraeus Port reports strong H1 2023 results

The Piraeus Port Authority SA, which operates Greece’s biggest and busiest port, reported a 48.8-percent increase in pre-tax earnings for H1 2023 – 49.4...

Greece names Thessaloniki port operator preferred bidder for Volos port

Greece’s privatisation agency has named the operator of Thessaloniki port as the preferred bidder for acquiring a 67% stake in the port of Volos,...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...

Port Hedland Iron Ore Exports Edge Up 4% in August

Pilbara Ports Authority has delivered a total monthly throughput of 62.8 million tonnes (Mt) for August 2023, consistent with the August 2022 throughput. The Port...