Market Report

Former Reports:

Container update 17th July, 2008

The charter market has been under severe pressure over the last couple of weeks. Charter rates have dropped quite considerably in all sizes between 1000 and 3000 TEU. The sizes that have been most effected recently are certainly 1700 TEU ships as well as 2500/2700 TEU ships where we have seen a build up of tonnage particulary in Asia. On top of that we have witnessed a fair amount of relet tonnage between 1700 TEU and 3000 TEU appearing in the market, which is obviously putting even more pressure to the market. Most liner operators are taking a wait and see attitude at the moment and are avoiding to charter in additional ships mainly because of the sky high bunker prices.

One metric ton of IFO 380 cst has recently exceeded the USD 700 barrier. The daily bunker costs of a 1700 TEU ship are amounting to about USD 35,000 per day whilst the charter rate of such a ship is nowadays only around USD 16,000. We have recently witnessed the first "victim" of the high punker prices since we understand that EWL has declared Chapter 11. It will be very interesting to see how the spot market is going to develop within the next couple of weeks / months. At the moment there seems to be little hope for a rebound of the market in the short term. One can only hope that autumn will bring more activity, however this will probably dependent a lot on the further development of the bunker prices etc.

Having said all this, the project/forward market still looks far brighter than the spot market. This is underlined by the recent fixture of 5300 TEU Newbuildings with a high reefer capacity from german Owner Hermann Buss to CSAV at a fairly strong rate of USD 34,500 for 5 years. We still see the market see the market for newbuildings above 4000 TEU being firm for forward positions.

Above 2000 TEU activity was rather slow during the last two weeks. We have seen the Northern Endeavour fixing a 70 days Feast/Sth Africa/ECSA roundvoyage with CMA at USD 20,500 out of a prompt position, which brings the ship into an autumn position when market actitity is usually expected to pick up again.
Furthermore NYK subletted the NYK Galaxy (4300 TEU) for a period of about 10 months to CMA at a decent rate of USD 34,000 indicating the limited number of panamax ships available in the market.

Around 1700 TEU activity picked up again a bit during the last two weeks. The Irenes Logos, being fitted with Stoppers, has been fixed by CCNI to join their Continent/WCSA service for 24 months at a healthy rate of USD 16,900. Also the rate of USD 16,650 for the B 170 Helene Russ extension with CSAV looks quite ok taking into acount that the new period is only counting as from beginning of September, however it is noteworthy that this ship is also equipped with Stoppers. Prompt tonnage like the Hansa Centurion or the Nordriver is achieving USD 15,500 for periods of 6 months these days. This is some USD 1,000 less than what those ships were fixed at around 4 weeks ago.

The segement around 1100 TEU has been the most stable one over the last couple of weeks. CV 1100 are still fixing around USD 12,000 - 12,500 for 12 months in Asia, while they achieve slightly better rates in the Atlantic. The Mondena for example has been extended by CMA for a period of 9 months at USD 12,500 per day.

FIXTURES

Gearless

Conti Galaxi '06	CMA CGM
53704 dwat 4334teu (2810 @ 14ts) 600 rfs / 24kn on 133,6ts 10 mos / feast-usg-caribs trade	34000

Irenes Logos '95	CCNI
24370 dwat 1624teu (1250 @ 14ts) 206 rfs / 20,0kn on 53ts 24 mos / ww trade	16900

Michigan Trader '08	EMES
18700 dwat 1296teu (957 @ 14ts) 390 rfs / 19,6kn on 45ts 12 mos / ww trade	15400

Cape Ann '93	SEACON
15566 dwat 1066teu (750 @ 14ts) 100 rfs / 18kn on 38ts 8 mos / feast trade	12000

Geared

Northern Endeavour '01	CMA CGM
3390 dwat 2468 teu (1830 @ 14ts) 320 rfs / 21kn on 65ts 70 days / ecsa - feast trade	20500

Helene Russ '96	CSAV
22984 dwat 1728teu (1125 @ 14ts) 200 rfs / 20kn on 54ts 12 mos / ww trade	16650

Nordriver '97	CMA CGM
22420 dwat 1684teu (1100 @ 14ts) 160 rfs / 20kn on 49,5ts 6 mos / ww trade	15500

Manuela '93	Seaboard
21626 dwat 1661teu (1100 @ 14ts) 150 rfs / 20kn on 52ts 18 mos / usg-caribs trade	16075

Hansa Centurion '98	CMA CGM
21473 dwat 1645teu (1180 @ 14ts) 128 rfs / 19kn on 49ts 6 mos / med-wafr trade	15500

Wybelsum '08	CMA CGM
12048 dwat 1304teu (850 @ 14ts) 250 rfs / 19,5 on 45ts 12 mos / cont trade	16000

Mondena '99	CMA CGM
12048 dwat 1115teu (706 @ 14ts) 212 rfs / 19kn on 44ts 9 mos / feast trade	12500

Lania '02	Co Heung
13760 dwat 1102teu (675 @ 14ts) 200 rfs / 20kn on 43ts 4 mos / ww trade	12000

Oel Blessing '07	CSAV
13400 dwat 1030teu (700 @ 14ts) 18ts on 38kn 12 mos / feast trade	12600

Merkur Bridge '93	Hull and Hatch
12598 dwat 1012teu (646 @ 14ts) 90 rfs / 17,5kn on 29ts 11 mos / feast trade	10900

This report reflects information given in good faith to the best of our knowledge, but without guarantee.