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16 May 2025 - Year XXIX
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FORUM of Shipping
and Logistics


Shipping and Shipbuilding Markets in 2004

I N D E X




The containership market in 2004
 


Huge orderbook 
Charter fortunes 
The charter market 
Slot charters follow the trend
Long term charters
The fleet
The operators
The second-hand market


After the 2001 traumas, the year 2002 was a year of convalescence and the full health was restored in 2003. As for 2004, it has been the year of the superlatives. It has witnessed a shipping boom unseen since the early 1970s oil-based boom.

This time, the international trade is sitting on a much larger base than 35 years ago, both in commodity variety and in geographical pattern. One country has however become an essential wheel: China. It is estimated that it is at the origin of one third of the world trade growth last year.

With its economy growing at some 9 % a year and containerised exports reaching a 30 % annual increase, China is itself at the origin of the containership shortage and the concomitant unprecedented levels of charter rates. But China is not alone to fuel the shipping frenzy. First, and it is important, it is inseparable from the purchasing power of the USA and of Europe. Second, there are other countries which are also witnessing high levels of exports, such as India, Thailand, Vietnam and Chile.

The rise of the Euro against the US Dollar and Asian currencies has also implications on the containership demand. It makes Asian products, and especially Chinese ones, cheaper for Europe. All along the year, volumes have soared on the Far East-Europe route, which needs more ships than the Asia-US route because of the longer distances.

Shipowners, liner operators and port operators have been taken by surprise by this surge. They can hardly cope with the volumes. Ships are full to capacity out of Asia and there are not enough of them to scoop up all the boxes that flow out from this continent. The congestion of terminals, especially in Europe and the US, compounds the problem, as they cause delays to busy ships and disrupt the tight schedules of usually well oiled weekly loops. This is a challenge for 2005.

In order to save ships, liner operators have rearranged loops and have cut capacity on the comparatively stagnant transatlantic trade in order to send ships on busiest routes. The optimisation of a number of services has also led to a better overall filling ratio, especially at each end of the loops (even if it means filling with empty boxes, which cannot be discounted as they have to be repositioned in one way or another).

Owners of hired container tonnage are rewarded above all expectations, with charter rates which are 50 % higher than the historical peaks. Leading liner operators have anticipated a further rise in demand for 2005 and beyond by chartering ships for periods much longer than usual and have committed themselves in huge newbuilding programmes.

During the second half 2004, there has been intense chartering activity for ships to be delivered in 2005 so that the pool of ships left available has shrunken fast, which could in turn lead to a further round of charter rate rises once the Chinese New Year festivities (February) end.
 

Huge orderbook matches strong trade growth

In early 2005, the cellular ships orderbook stood at 3.9 million teu, representing 53 % of the existing fleet. As big as it is, it does not seem excessive, although it looks like somewhat on the high side, especially for the year 2007. The huge influx of capacity could reasonably be absorbed by the bullish international trade, itself supported by a strong world economic growth.

The world GNP growth has reached around 4-4.5 % in 2004 (against 2-3 % for the long term historical average). Although a slight softening is expected in 2005, the GNP growth should remain above the historical average, and this performance could be repeated in 2006, in the absence of unpredictable events.

As for the international trade, it is estimated to have grown by 7 % in US$ terms during 2004 (against 4-5 % for the long term average). Alas no figures are available in volumes, as it is difficult to assess because of the wide variety of goods.

The observation of long term trends shows that the cellular fleet has grown, roughly, twice as fast as the trade growth. It means that if the bullish trade growth of 7 % recorded for 2004 is to be prolonged during the next two or three years, then it will generate containerised volumes needing to be moved by a fleet growing at 14 % per annum. This is precisely the rate at which the fleet is expected to grow during the next three years, according to BRS-Alphaliner forecast.

Even in case of a softening, the supply-demand ratio of containerships is to remain on the owners side, at least in 2005 and 2006, because of the catch up effect: the shortage which has developed in 2004 must be compensated by deliveries higher than the natural growth.

Given this, the capacity coming on stream should be swiftly absorbed by the transportation demand during the coming months, while a return to a balanced supply-demand ratio could occur in 2006. This should mark a turning point in box rates and charter rates.

The situation in 2007 and beyond is another matter. Some forecasters say that the world economic and trade growths are to remain sustained for the remaining years of the decade, although not at 2004 levels as a softening is expected. The question is: what amplitude will take this softening ? The supply-demand balance for 2007 is thus difficult to assess. Trade growth should remain however higher than the historical average and it is a reasonable bet.

As for 2008-2009, the orderbook has yet to be filled in. So, orders of containerships for these two years may flow in the coming months. Assuming that a 6 % growth in trade is maintained, almost 1.3 million teu should be delivered in 2008 and 1.45 million teu in 2009 only to maintain the equilibrium.

If the omens for the second half of the decade are good, a number of worries must not be overlooked, which could affect the container shipping market. They are :

  • the weakness of the US dollar and uncertainties on exchange rates,
  • a possible hard landing of the Chinese economy,
  • a slowdown in the US consumption of imported products due to a weak dollar combined with possible interest rate increases.

More immediate and foreseeable, problems will affect container shipping in 2005 :

  • the shortage of cellular ships,
  • congestion in ports, leading to delays, accentuating the ship shortage,
  • strain on inland transportation networks.
Charter fortunes

Operators are living a strange paradox as they are rivalling to fix ships at peak rates for periods of three or four years, without knowing what the future has in store. Actually, the charter market is not led by demand alone as far as long term expectations are concerned. It is also propelled by skilled operators who play the shortage game, locking up charterers for years against discounts on rates. These discounts remain somewhat limited when one considers the progression of charter rates over the past two years.

With ships sometimes hired at twice their total operating costs (including repayment of capital), owners enjoy an unprecedented situation since container ships started to be offered for charter, some 35 years ago.

Owners of containerships derive profits which are reminiscent of those accumulated by oil tanker owners in the early 1970s (Onassis, Niarchos, YK Pao, CY Tung and a crowd of other more or less known names).

Indeed, a B-170 locked for three years at $ 27,000 per day will raise enough profit to order a brand new ship of the same size!

With this in mind, it is not surprising that charterers look at buying ships. But with exceptional returns expected on hires, sellers' conditions defy gravity and buyers think twice before taking the plunge. Over the last 12 months, prices of second-hand ships have roughly doubled!

Only a few operators have taken steps in order to be less dependent on chartered ships. It concerned mostly MSC and, to lesser extent, CMA CGM. Both have bought second-hand ships as well as existing newbuilding contracts. Far behind, PIL and Simatech have also bought second-hand tonnage. In another deal, Zodiac Maritime has bought eight Panamax containership contracts for assignment to the associated company Zim (which has sold ships as well).

Although there is a trend among operators to order tonnage in their name, they still rely heavily upon non operating owners, which have relentlessly continued to book ships all along the year.

There has been indeed a significant regular drop in the share of chartered ships in the cellular ship orderbook, from 63 % in January 2004 to 52 % January 2005. The lion's share of this reduction concerns the VLCS orderbook: their chartered component has shrunk from 58 % to 36 % (thanks, for a great part, to MSC buying or exercising purchase options on chartered units).

Conversely, existing ships have been sold to non operating owners. P&O Nedlloyd has sold en bloc 14 Panamax, while Zim has sold five 3,000 teu units and Hanjin five 4,000 teu ones. All these ships were sold with charters back to the sellers. However, these deals have more to do with financial engineering than with market play.

These diverging moves led actually to a slight increase in the chartered component of the existing cellular fleet, which stands at 47.4 %, against 47.0 % one year ago. German owners continues to dominate the charter scene, as they control 63 % of the chartered fleet, dwarfing Greek owners (11.5 %) and Japanese owners (7.2 %).

A few operators are however taking advantage of peak charter rates. As strange as it seems, they have been accepting, if not actually welcoming, ever increasing rates for longer and longer periods throughout the year. Maersk Sealand, MSC and CMA CGM have been keen rivals in this race to land as many possible ships, at the expense of others, who are either hesitant or simply do not have a sufficiently strong financial base to follow.

These three carriers have swooped on as much ships as they could (not to mention their unceasing order waves of newbuildings) and are thus in a position to strongly improve their market share.

Actually, with these peak charter rates, we are on the eve of a new era of precipitating the concentration of the fleet in a few hands with a new sort of natural selection. This may explain why there has been no hurry in attempts to take control of other operators last year.


 

The charter market

We had speculated in our last annual report that the highest rates observed in 2003 could well represent the average rate for 2004. Not only they did, but they went much higher!

With ships as rare as ever, charter rates have exploded to levels which are 50-60 % above the historical highs observed during the summer 2000. Besides record rates, the year 2004 has been characterised by a lengthening of charter periods and by fixing ships six or twelve months in advance.

These two latter trends have dried up the pool of large ships (both existing and newbuildings) available in 2005. Charterers are now eating into the 2006 available fleet, and a market for sublets has started to emerge.

The rally on the charter market continues and owners are reaping the benefits of the shortage of tonnage. The lack of adequate tonnage to launch new intercontinental loops has thwarted the plans of several carriers.

In December 2004-January 2005, 4,000 teu ships were hired at $ 40-45,000 per day for 12 months period while 2,500 teu ships were valued at $ 35-37,000. Ships of 1,700 teu peaked at $ 27,000 for 4 years periods. 1,000 teu ships were negotiated at $ 18,000 for 6-12 months.

The tonnage scarcity and the high demand on regional and feeder trades have sent rates soaring for smaller ships as well. Cellular ships of 800-850 teu are not cheap, as they reach now the $ 15,000 mark for 12 months (against $ 8,000 end 2003). Modern ships of 500 teu ended the year at $ 9,000 for 12 months (against $ 4,400-4,800 during the three years pre-2004, and for periods of 3 to 6 months).

If top rates are good news for owners, carriers relying only upon chartered tonnage do not share the same enthusiasm. Among them are several niche regional carriers and feeder operators. They use small ships (under 1,500 teu), which until early 2004 could still be hired at fair rates, but have since reached such levels that services will have to be reviewed or cut.
 

Slot charters follow the trend

A little spoken aspect of the container trades concern slot charter rates. As ship charter rates have soared, so have slot charters. Some slot chartering agreements are referring to charter market conditions, and the slot charter rates are reviewed at regular intervals. Other ones are fixed for the duration of the agreement which is usually not more than two years.

Slot charter rates can be indexed on ship charter rates as well as other operational costs, such as voyage costs, including cost of bunkers, canal tolls or port dues. As the ship charter rates item is the heaviest one, it is then not surprising that slot charter hires have risen strongly, leading even to the non-renewal of some agreements.

In this period of tonnage scarcity, those who run the ships may find quite profitable to fill them at full capacity and may not wish to offer their precious earning space to others (which are after all rivals), unless they pay the price.

Operators are now very careful when it comes to enter slot exchange agreements with other lines, as they evaluate risks of failure of partners, especially in the case of small operators whose financial standing may not be strong enough to survive the high charter hires.

There has been during the past year a number of changes in partnerships and slot buyer participation, which may have been caused by tensions created by space shortage on a background of ship shortage and of peak charter rates. On the other side, several operators are teaming up to launch new services with chartered ships, thus sharing the burden of expensive charter hires while being able to offer the needed weekly frequency. Such a way of doing business is of course not new, but it is exacerbated by current market conditions.
 

 
Long term charters dominate the market

Periods of four years and more for 4,000-5,000 teu ships accounted for 86 % of the reported fixtures in 2004, against 49 % in 2003 and 17 % in 2002, according to a BRS-Alphaliner analysis. Smaller ships have also been fixed for much longer periods than the usual 12 months. Periods of 24 to 40 months for 1,500-2,000 teu ships accounted for 46 % of the reported fixtures in 2004, against 7 % in 2003 and only 2 % in 2002. The accompanying table details how the duration of charter periods evolved from 2002 to 2004.
 

 


 

The fleet

At 1st January 2005, the cellular fleet reached 3,362 ships for 7.29 million teu, in progression of 9.8 % on 12 months, a relatively modest increase as the average annual progression during the past 10 years has reached 10.7 %. The cellular fleet accounts for 89 % of the total fleet deployed on liner trades in teu terms.

The containership fleet counts 49 units of more than 7,500 teu and there are 165 more of these giants on order, some of them reaching the 10,000 teu mark. By the end of 2007, there will be enough of these leviathans to run 15 Asia-Europe and 15 Asia-US loops.


 

2004 deliveries stood at 175 ships for 645,000 teu (against 177 ships for 575,000 teu in 2003). Orders stood at 464 ships for 1,692,000 teu, which is significantly less than the record 520 ships for 2,123,000 teu ordered in 2003.

The total value of cellular ships ordered in 2004 reached almost $ 22.2 billion (using conversion rates at time of order), a figure similar to 2003, reflecting the steep rise in newbuilding prices ($ 13,150 per teu instead of $ 10,350 per teu in 2003 - raw figures unadjusted for capacity).

The total orderbook reaches 3.9 million teu in early 2005, representing 53 % of the existing fleet. It is dominated by large ships, with ships over 4,000 teu accounting for 74 % of the total orderbook. As for deletions, only five ships for 2,450 teu were sold for scrap last year.

The teu capacity which will enter the market during the three years 2005, 2006 and 2007 corresponds to 47 % of the existing fleet. In other terms, the fleet is to rise by almost 14 % per year, well above the 10 % average observed during the past 15 years. The cellular fleet is expected to reach 10.8 million teu in January 2008 (assuming no scrapping)


 

The operators

From 1st January 2004 to 1st January 2005, the combined fleet of the Top 25 carriers has grown from 5,955,000 teu to 6,640,000 teu (+11.5 %). Its share of the world fleet deployed on liner trades has risen from 79.6 % to 81.3 % in teu terms, confirming the concentration trend.

The five largest carriers alone operate 39 % of the capacity effectively deployed on liner trades.

The total teu capacity deployed on liner trades has grown by 9.1 % in 2004, reaching 8,168,000 teu st at 1st January 2005, against 7,485,000 teu one year earlier. In deadweight terms, the figure stands at 7.5 %, with 120 million dwt at 1st January 2005 against 111.5 million dwt one year earlier.

These figures take into account all the types of ships deployed on liner trades (cellular, multipurpose, ro-ro). The cellular fleet itself amounts to 7,290,000 teu (it represents 89.2 % of the total teu figure deployed on liner trades).

The two largest carriers, APM-Maersk and MSC contributed to 29 % of the fleet growth in teu terms, with 197,000 teu out of the 683,000 teu added (+101,000 teu for MSC and + 96,000 teu for APM-Maersk).

APM-Maersk became last December the first teu millionaire, as its fleet reached 1,016,000 teu on 1st January 2005. APM-Maersk controls Maersk Sealand, Safmarine, Norfolkline and APMSS-MCC. MSC comes at the second position with 637,000 teu.

These two leaders are however not among the top teu gainers in relative terms. MSC grew by 18.9 % and APM-Maersk by 10.4 %. They are distanced by four carriers (within the Top 25) which have logged growths of 28-33 %: CSAV, CSCL, Yang Ming and CMA CGM. Outside the Top 25, the emergence of two Chinese regional companies is worth noting: SYMS (+24.4 %) and SITC (+20.2 %).

On the mergers & acquisition side, no large mergers or takeovers occurred between rival carriers. The most significant one has been the buying by Costa Container Line of its compatriot Gilnavi. It appears that aggressive carriers (read: potential buyers) have found ways to increase market share in securing as many ships as they can, leaving conservative ones with what is left, i.e. not much choice and pricey.

On the other side, some potential targets have protected themselves from raiders, such as NOL-APL or TUI-Hapag-Lloyd, in steering clear of market listing. Despite this, there is still a choice of first class carriers which remain potential targets: CP Ships, Royal P&O Nedlloyd, Hanjin-Senator and Hyundai M.M.

There has been however important initiatives on the corporate side, such as Temasek Holdings, the Singapore state investment vehicle, taking control of NOL, parent company of APL, in what can be seen as a move to keep at home the Singapore historical carrier, until then listed on the local Stock Exchange. Other large deals concerned the purchase by Royal Nedlloyd of the whole stock of P&O Nedlloyd and the takeover of Zim by the Ofer Group.

CSCL made the news with its listing on the Hong Kong Stock Exchange in June, while intentions to list Hapag-Lloyd faded away as parent company TUI changed its mind and preferred to keep the full control of its Hamburg jewel.

There has been numerous smaller deals, which are summed up in the accompanying table.
 

Operators : transactions and significant moves in 2004

Straight sales & mergers

  • Temasek Holdings (Singapore) has taken full control of NOL, parent company of APL.
  • Royal Nedlloyd B.V. (Netherlands) has taken 100% control of P&O Nedlloyd Containers Ltd (UK) through the purchase of the 50 % stake held by the Peninsular and Oriental Steam Navigation Co (i.e. P&O Group). The resulting company, Royal P&O Nedlloyd Ltd, is listed on the Amsterdam Stock Exchange.
  • The Ofer Group (Israel) has taken control of Zim Navigation, since renamed Zim Integrated Shipping Services Ltd.
  • Costa Container Line took over the deep sea liner trades of Gilnavi srl di Navigazione, the liner arm of the Grimaldi-Genoa branch.
  • The Carlyle Group has sold Horizon Lines to private equity firm Castle Harlan. - STX Corp. (Korea) has bought 67 % of Pan Ocean Shipping Co (Korea).
  • Neptune Orient Lines (NOL - APL parent company), Singapore, agreed to sell its 28.7 % stake in Lorenzo Shipping Corp to National Marine Corp. (both Philippines).
  • Neptune Orient Lines Ltd (NOL) has sold Neptune Associated Shipping Pte Ltd (NAS) (tankers & bunkering).
  • Eimskip (Iceland) and Faroe Ship (Faeroe Islands) have merged.
  • Euro Container Line AS (ECL) (Norwegian company co-owned by Eimskip and Wilson Line) took over Norwegian operator CoNor Line.
  • Rickmers Reederei GmbH & Cie KG (Bertram Rickmers Group), has taken over all of the shares in CCNI GmbH (Deutschland) from Compa''a Chilena de Navegaci'n Interoce'nica SA (Santiago).
  • Egyptian company MISR Shipping has been absorbed by its compatriot National Navigation Co (NNC).
  • Trailer Bridge Inc. (USA) bought 100 % of Kadampanattu Corp. (K. Corp.) from the Estate of Malcom P. McLean (USA)

Transfers and moves within operating groups

  • NYK and its affiliate TSK have decided to spin off their respective domestic liner service operations and related businesses, to set up NYK Line Japan Ltd (effective April 2005).
  • China Shipping Container Lines (CSCL) boosted its share in the Shanghai Puhai Shipping Co, Ltd (SPS) from 50 % to 90 % held by other China Shipping units.
  • Hamburg-S'd abandoned its trade name Ellerman Line.

New operators of liner services

  • Manson Shipping (Taiwan) - services Taiwan-Hong Kong-Vietnam-Philippines.
  • Winland Shipping Co, Ltd (China) - services Weihai-Japan.
  • Dalian Beiliang Logistics Containers (China) - service Dalian-Weihai-Japan.
  • HAL Shipping (Halship) (Canada) - service Halifax-USEC.
  • Delphis NV (Belgium) is incorporated (intra Europe services).
  • AC Forwarding (ACF) and Hudig Veder & Dammers (HVD) form AC Ireland Line.
  • Black Sea Container Shipping Co launches intra Black Sea service.

Cessations of activity in liner shipping

  • CT Navigation (Taiwan) closed its services (Taiwan-Hong Kong-Vietnam-Philippines).
  • Hong Kong Ming Wah (HKMW) has closed its only service (Hong Kong-North China), marketed under the Chiu Lun Transportation name.
  • SPM Shipping (St Pierre & Miquelon) ceased its activity- service Halifax-USEC.
  • Armada Line closes its North Europe-Med service.
  • Blue Container Line (Greece) closed its services (Intra Med and Black Sea).

Significant other moves

  • China Shipping Container Lines (CSCL) has been listed on Hong Kong Stock Exchange.
  • Norwegian shipowner John Fredriksen has bought stakes of 3 to 10% in Hanjin Shipping, Hyundai Merchant Marine, Royal P&O Nedlloyd and NOL.
  • EOX Group Bhd has been renamed HubLine Berhad.
  • The liner division of Unicorn Lines has been renamed Ocean Africa Container Line (OACL).
  • TECO Lines is created by Samskip and Estonian Shipping Co.
  • DAL left the West Africa trades.
  • Steamers Maritime (Singapore - Keppel Group) has sold its whole fleet of ten containerships.
 
CMA CGM Hugo
100,400 dwt, delivered in 2004 by Hyundai, owned by Conti Reederei, operated by CMA CGM
(Copyright CMA CGM)
 
The second-hand market for containerships in 2004
2004, an exceptional vintage! This is certainly true for almost all shipping markets. The year 2004, with no less than 265 sales of pure containerships (of which 44 resales of ships under construction or ordered) and 126 other ro-ro and multipurpose ships, compared to respectively 181 and 104 ships last year. Nonetheless this leaves a feeling of frustration for a number of buyers who were not able to achieve all their intended investments.

This frustration is caused by the evident lack of tonnage for sale, even at very high prices. Many owners, due to lack of prompt yard slot availability, preferred to go on the charter market for periods sometimes as much as 3, 4 or 5 years, but who can blame them'

A simple example illustrates the mood that reigned throughout the second half of the year: the owner of the m/v 'Lissy Schulte' (B170 - 1,730 teu, built in 1995) refused an offer of no less than $ 30 million and has finally been fixed firm to P&O for 48 months at level of $ 26,500 per day! According to our calculations the result of this charter is equivalent to about $ 35 million. We now understand why this ship has not been sold even at such a price level.

The other specificity of the second-hand market for containerships in 2004 is, without any doubt, the number of sales in the 500 to 2,000 teu size range, and more precisely from 800 to 1,200 teu. There were no less than 15 to 20 potential buyers who found themselves chasing the rare units being put on the market. There was again this year an outright winner in the person of Mr Aponte (MSC, Geneva), with a total of some thirty ships bought in 2004, to which should be added the purchase of some ten newbuilding contracts initially ordered by German owners.

German owners bought some sixty ships. It is interesting to note in this respect that it is virtually impossible to compete with a German buyer on a modern ship offered on the market when it is controlled by German interests. A good lesson in self-protection!

Also, whilst in the past ships already under long-term charter were gaining popularity amongst buyers, this year ships that were "time-charter free" were by far the most sought after. In the absence of charter free tonnage in 2004, a large number of buyers went after containerships still employed up until the end of 2005.

Despite the high prices paid, buyers had to be patient for several months before they were able to benefit from a chartering market for which they hope it will stay at least as good as today's levels. As to liner operators, purchases of this kind proved to be essential once they had to ensure operating the necessary tonnage on their regular services.

The principal "en-bloc" sales which can be reported this year are:

  • 5 x 3,500 teu and 9 x 4,200 teu (14 ships) built in 1991, 92, 93, 94 and 95 from P&O Nedlloyd to MPC Capital for a total of $ 660 million.
  • 4 x 2,824 teu Hyundai contracts for delivery between 2005 and 2006 resold by Erck Rickers to CMA CGM for $ 44 million each.
  • 8 x 4,250 teu Dalian New contracts for delivery between 2006 and 2007 resold by Bertram Rickmers to Zodiac.
  • 7 x 1,538 / 1,658 teu built between 1998 and 2000 by Jiangnan and HDW, from clients of Silver Line (who bought the entire fleet in 2001 for $ 100 million) to MSC for $ 130 million.
  • 10 ships of 369 to 1,012 teu, sold by Keppel Group (Steamers) to Interorient for $ 91 million. 
  • 4 x 5,050 teu, Hanjin shipyard contracts for delivery in 2006, resold by Rickmers to MSC for $ 63.5 million each.
  • 5 x 3,039 teu built between 1990 and 1992 by HDW, sold by Zim to Torvald Klaveness and Icon Capital for $ 35 to $ 38 million each, with a bare-boat charter back to Zim.
  • 4 x 2,394 teu (20 knots) built in 1994 in Spain, sold by Zodiac Maritime to MSC for just over $ 30 million each.
  • 4 x 2,524 teu built by Kvaerner in 2003 and 2004, sold by an Andreas Ugland-associated company to the bare-boat charterer of the ships, Hamburg-Sud, for $ 35 million each.
Number of pure containerships sold by size:
Less than 900 teu: 82 
From 900 to 2,000 teu: 83
From 2,000 to 3,000 teu: 42 
Over 3,000 teu: 58 (of which 28 contract resales)
Total number of ships sold in 2004: 265
Total capacity of ships sold in 2004:  500,145 teu

  Containerships under 900 teu

Together with the normal flow of activity this year, we have seen a search by certain buyers for ships smaller than what they originally needed. Prices for some ships have occasionally doubled between mid-2003 and end 2004. Even ships that can hardly been classified as "suitable" on this market, such as a slow-speed vessels or those with gears unable to perform a standard loading/unloading rate, have found buyers at more than favourable conditions for their owners.

Buyers based in the Far East, Germany and Greece were, in this order, the most active within this size category.

Interorient's deal of buying the feeder fleet of the Keppel Group for $ 91 million fairly well reflects the mood of the market this year. A fleet which has been on the market throughout the whole year 2003 and which was finally sold at the beginning of 2004. Since then, one can estimate the theoretical gain in the value of each ship to be at about 50 to 60 %.

Containerships of 900 to 2,000 teu

This has been by far the most active sector of the second-hand containership market! A cascade of sales, dozens of buyers, ships sometimes for sale, sometimes withdrawn, escalating negotiations with the seller rising his price at each stage of the negotiation'.. in short a happy shambles within the context of euphoric freight rates and second-hand prices.

This situation is particularly true since the summer of 2004. At that time buyers were struggling with the steady disappearance of charter-free ships. The few units still available in 2004 and 2005 will become targets for owners such as MSC, Zim or CMA CGM'

Containerships of 2,000 to 3,000 teu

This sector saw only a small progression this year with some fifteen more ships sold compared to last year. At the end of the year owners of newbuilding contracts for delivery in 2005 did not hesitate to ask for ' 45 million ($ 60 million) for a gearless ship of 2,700 teu. In short, the lack of tonnage explains some excess in ship's valuations.

Containerships of 3,000 teu and more

Fifty percent of the 58 deals done this year were newbuilding contract resales. This segment of the market was dominated by Zodiac, MSC and above all the German KGs, always very keen about ships of this size, which combine several favourable factors to investors: 

  • a market predominately stable and secure,
  • a popular size and already well-known in Germany, thus a relatively good market knowledge by investors,
  • a satisfactory "liquidity" of the assets and reliable charterers.

One of the rare pure second-hand operation done this year was the one involving the 3 ships of 3,187 teu controlled by Talcar, Israel, built respectively in 1986, 1986, and 1988 at a price of $ 80 million en-bloc with delivery in 2005 to MSC.
 

Demolition

Out of the 52 ships demolished in this category, only 5 were pure containerships, the latter totalling a mere 2,450 teu. The others were either multipurpose or conventional cargo ships. This low scrapping level is a direct consequence of the firmness in the freight market. Scrap metal price levels have been hovering in the region of $ 400 per lightweight ton
 

Conclusion

The world cellular fleet has increased this year by 9.8 % to reach 3,362 ships (7,290,000 teu). This evolution is in line with the annual average growth of the past 15 years. However we already know by now that the shipyards will deliver a capacity of 47 % of the existing fleet in the course of the next 3 years. This represents a growth of about 14 % per year!

The demolition market usually hits ships of 27 years or more on average, which in the best case will only shrink the world fleet by 3.2 % of its current capacity.

The question is therefore: will Asia, and especially China whose strong export industry has continued to expand, be able to absorb this additional tonnage? A large number of players, both on the industrial as well as the shipping side, believe that it will. It is however a very complex exercise to predict the strength of such a market. As we all know, to simply maintain it at its present levels, it depends upon China and its neighbours, whose growth in turn seems to be in their own hands.
 

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HMM closed the first quarter with a net profit growth of +52.5%
HMM closed the first quarter with a net profit growth of +52.5%
Seoul
The South Korean company's fleet transported 930,629 containers (+4.2%)
In the first quarter, Hapag-Lloyd's revenues increased by +18.6% and net profit by +49.6%.
In the first quarter, Hapag-Lloyd's revenues increased by +18.6% and net profit by +49.6%.
Hamburg
The company's fleet transported 3.3 million containers (+8.8%)
Evergreen, Yang Ming and WHL's quarterly earnings growth eases
Keelung/Taipei
The second company recorded a decline in profits
In the first three months of 2025, cruise traffic at GPH terminals increased by +30%
Istanbul
In the period, 1,568 ships (+53%) called at them
In the first quarter of 2025, ship traffic in the Suez Canal decreased by -17.1%
In the first quarter of 2025, ship traffic in the Suez Canal decreased by -17.1%
Cairo
Growth of +16.4% in the value of transit rights paid by ships
This morning the ceremony of laying the first stone of the Darsena Europa in the port of Livorno
This morning the ceremony of laying the first stone of the Darsena Europa in the port of Livorno
Leghorn
Five years of work and an investment of 550 million euros are expected
Russia to invest $6 billion over the next six years to develop shipbuilding
Fly
Over 1,600 Civilian Ships Planned to Be Built by 2036
US, China agree to suspend tariffs for 90 days, cut by 115 percentage points
Beijing/Washington
They will drop to 30% and 10% respectively from the current 145% and 125%
In the first quarter, cargo traffic in Tunisian ports decreased by -2.6%
In the first three months of 2025, freight traffic in the port of Ravenna increased by +8.9%
Ravenna
Increase in dry bulk, containerized and conventional cargo
The port of Ancona closed the first quarter with a traffic of 2.1 million tons of goods (+4%)
Ancona
At the Ortona airport a decrease of -9% was recorded and at the Vasto airport a growth of +14%
In the first quarter, Costamare's revenues decreased by -6.1%
Monk
Costamare Bulkers Spin-Off Completed
The western dock of the port of Gioia Tauro has become operational
Joy Taurus
Container ship "MSC Bridge" docks
Maersk Group posts positive quarterly financial results
Maersk Group posts positive quarterly financial results
Copenhagen
Container volumes transported by the fleet remain stable. Traffic growth of +8.4% in port terminals
European Commission approves Italy's request to reintroduce the International Registry
Brussels
It will be in force until the end of 2033
In the port of Trieste, bulk cargo decreases and miscellaneous goods increase
Trieste
In the first quarter, a decrease of -4.3% was recorded. In Monfalcone, traffic increased by +54.9%
In the first quarter, goods handled by the port of Venice increased by +4.3%
Venice
Solid bulk and containerized cargoes on the rise. Liquid bulk drops by -6.1%
GNV orders four more ro-pax vessels from Guangzhou Shipyard International
Genoa
Deliveries of the 71,300 GRT units will begin in early 2028
The agreement between the Region and the extraordinary commissioner gives the go-ahead to the construction of the Darsena Europa in the port of Livorno
Florence
Giani: work can finally start
Filt, Fit and Uilt support Ciane's activity in Genoa and Savona, which would be put in danger by Petromar's competition
Genoa
Hupac will focus on combined transport on the North-South axis, focusing on high-volume connections
Zurich
DFDS Quarterly Revenues Up 7.5% With Ekol Acquisition
Copenhagen
The volumes of goods transported by the fleet are stable. Passengers drop by -27.5%
At the end of 2025, RAlpin will suspend the rolling highway rail service between Fribourg and Novara
Olten
The company denounces the numerous and unexpected restrictions on the railway network
Terminal operator ICTSI closes a record first quarter
Manila
Historic peak in financial results and container freight volumes handled
Premuda, management buy-out operation on the entire share capital of the company
Genoa
It was implemented with the strategic and financial support of Pillarstone
In the first quarter of this year, ship transits through the Panama Canal increased by +35.9%
In the first quarter of this year, ship transits through the Panama Canal increased by +35.9%
Panama
Ships carried 60.0 million tons of cargo (+40.1%)
In the first quarter of 2025, maritime traffic in the Bosphorus Strait decreased by -7.5%
In the first quarter of 2025, maritime traffic in the Bosphorus Strait decreased by -7.5%
Ankara
A total of 9,351 ships passed through
Tender for the expansion and technological modernization of Gate IV of the Port of Trieste
Trieste
It is related to the technical and economic feasibility design of the project
Mediterranean Emission Control Area for Sulphur Oxides Comes Into Force Tomorrow
Brussels
Vessels will have to use fuel with a maximum sulphur content of 0.1%.
Norwegian Cruise Line Holdings Reports Quarterly Net Loss of -$40.3 Million
Norwegian Cruise Line Holdings Reports Quarterly Net Loss of -$40.3 Million
Miami
In the first three months of this year, revenues fell by -2.9%
DSV Completes Acquisition of Schenker
Hedehouse
In the first three months of this year, the Danish logistics group's operating result increased by +17.5%
Hapag-Lloyd expects to close the first quarter with very positive performance
Hamburg
ONE closed fiscal year 2024 with net income of $4.2 billion (+336%)
ONE closed fiscal year 2024 with net income of $4.2 billion (+336%)
Singapore
In the period the container fleet transported 3.1 million TEU (+2.3%)
In the first quarter, the revenues of the Chinese shipping group COSCO grew by +20.1%
In the first quarter, the revenues of the Chinese shipping group COSCO grew by +20.1%
Shanghai
The fleet transported 6.5 million containers (+7.5%)
In the last quarter of 2024, Eurokai port terminals handled over 3.2 million containers (+9.4%)
Hamburg
In Germany, traffic was 1.9 million TEU (+14.0%) and in Italy 443 thousand TEU (+7.9%)
OOIL orders 14 new 18,500 teu containerships
Hong Kong
Dalian, Nantong shipyards win $3.1 billion contract
Orient Overseas (International) Limited (OOIL), the subsidiary of the Chinese shipping group COSCO Shipping Holdings that operates containerized maritime transport services with ...
Chinese ports set new cargo throughput record for January-March quarter
Chinese ports set new cargo throughput record for January-March quarter
Beijing
In the period, seaports handled 73.1 million containers (+8.3%)
Passenger terminal completed at Rizzo dock in Messina port
Messina
Work begins on remodeling the seabed of the port of Reggio Calabria
Le Aziende informano
Il retrofit ibrido-elettrico di ABB guida i traghetti dei laghi italiani verso un futuro più sostenibile
UPS closed the first quarter with a net profit of 1.2 billion dollars (+6.6%)
Atlanta
Revenues down slightly following sale of Coyote Logistics
Second Large Cruise Ship Built in China Launched
Shanghai
It will join the Adora Cruises fleet at the end of 2026
Uiltrasporti underlines the need to keep Italian ports under public control
Rome
The liner shipping industry contributes substantially to the U.S. economy.
Washington
This is highlighted by an analysis carried out by S&P Global Market Intelligence on behalf of WSC and PMSA
Toll worsens from explosion in Iranian port of Shahid Rajaee
Tehran
It caused 46 deaths and injured over 1,200 people
Tender for concession of container terminal at Ukrainian port of Chornomorsk to be announced by mid-year
Kiev
The management will include the general cargo terminal
Wärtsilä's first quarter is positive
Helsinki
New orders value growth slows
CEVA Logistics (CMA CGM group) will buy the Turkish Borusan Lojistik
ESPO: The EU Parliament's Budget Committee's request for more funding for transport, energy and infrastructure is welcome
Brussels
The importance of financing TEN-T networks to enable their adaptation for both military and civilian dual-use purposes was highlighted
Solidarity contribution for the families of port workers who are victims of accidents at work
Rome
It was established by the National Bilateral Port Authority
Bureau Veritas Marine & Offshore Division Reports Record Quarterly Revenue
Neuilly-sur-Seine
New historical peak also for the classified fleet
PSA reportedly considering selling its 20% stake in Hutchison Ports
Singapore
This is according to "Reuters", which had already floated this hypothesis at the end of 2022
DP World to operate multipurpose terminal at Syrian port of Tartous
Damascus
An investment of 800 million dollars is planned
Mercitalia Logistics - Logtainer Agreement
Rome
The aim is to develop intermodal maritime transport services in Italy and Europe.
Port of Long Beach Sets New Container Traffic Record for April
Long Beach/Hong Kong
Hong Kong port handled 1.2 million containers (+6.0%)
RINA closes 2024 with revenues once again at a record level
Genoa
In the first quarter, turnover increased by +12% and new orders by +16%
The fourth edition of the national conference "Interporti al centro" will be held on May 23rd
Rome
Organized by UIR, it is scheduled at the Interporto Rivers in Venice
In the UK, express delivery company Evri and DHL's e-commerce division merge
London
Another 20 tractors coming for Contship Group's Hannibal
The Spice
They will be taken into delivery between the end of this year and the first months of 2026.
In April, the port of Singapore handled over 3.6 million containers (+7.1%)
Singapore
In terms of weight, containerized traffic decreased by -2.5%
Assagenti suggests the priorities that will have to be addressed by the next president of the port of Genoa
Genoa
Danaos Corporation's Quarterly Revenues Steady
Athens
Net profit down -23.5%
Cargo traffic in Montenegro ports stable in first quarter
Podgorica
Growth of +73.9% in volumes to and from Italy
Prysmian inaugurates the new cable-laying vessel Prysmian Monna Lisa
Milan
Finnish plant producing high-voltage submarine cables expanded
Second container terminal inaugurated at Cameroonian port of Kribi
Yaounde
It has a quay of 715 linear meters and a seabed depth of -16 meters
Eurogate Intermodal has bought the Deisser trucking company
Hamburg/Stuttgart
The Stuttgart-based company specializes in the container segment
Discount announced on transit fee for large container ships in Suez Canal
Ismailia
15% reduction for ships of at least 130,000 SCNT tons
The Simplified Logistics Zone of the Port and hinterland of La Spezia is ready to be made operational
Genoa/La Spezia
Regional councilor Piana made this known
Port of Genoa, the TAR for Lazio has annulled the Ignazio Messina-Terminal San Giorgio merger
Rome
Grimaldi Euromed's appeal accepted
Fincantieri closes first quarter with record new orders
Trieste
Strong growth in revenue and EBITDA
Stop, other Regions should follow Abruzzo's example by introducing the regional ferrobonus
Rome
The laying of the first pillar of the logistics park under construction in Tortona was celebrated
Tortona
The project is scheduled for completion in May 2026.
The Customs Free Zone enclosed in Genoa as an opportunity to mitigate the impact of duties
Genoa
Spediporto highlights it
Taiwan's Evergreen and Yang Ming saw revenue decline in April
Keelung/Taipei
Compatriot Wan Hai Lines' turnover grows
In the first three months of 2025, RCL containerships transported 658,000 TEU (+8.9%)
Bangkok
Revenues up +37.6%
The preparation process for the Port Regulatory Plan of Ancona has begun
Ancona
Preliminary verification of the Strategic Environmental Assessment has begun
d'Amico International Shipping reports quarterly revenue and earnings decline
Luxembourg
Balestra di Mottola: We do not expect any impact on us from any port tariffs applied in the US for ships built in China
Towards the final approval of the nomination of Francesco Benevolo as president of the port of Ravenna
Rome
The MIT has forwarded the proposal to the Transport Commission of the Chamber
The decline in vehicle volumes transported by the Wallenius Wilhelmsen fleet continues
Lysaker
The first three months of 2025 were closed with revenues of 1.3 billion dollars (+3.4%)
Shipping agents, customs agents and freight forwarders of La Spezia applaud Pisano's appointment
The Spice
For the presidency of the AdSP - they rejoice - "one of us" has been chosen
MIT appoints Bruno Pisano as president of the AdSP of the Eastern Ligurian Sea
Rome
DHL Buys IDS Fulfillment
Westerville/Indianapolis
Strengthening the e-commerce segment
V.Ships created V.Yachts to provide its services to large yachts
London
It will be based in Monaco
Mercitalia Rail transports scrap iron from Pomezia to steel mills in Northern Italy
Milan
Finnlines revenues increased by +2.3% in the first quarter
Helsinki
The volumes transported by the fleet are increasing, with the exception of cars
NYK to build third car terminal at Barcelona port
Barcelona
Work begins on the electrification of the MSC Crociere terminal
SAILING LIST
Visual Sailing List
Departure ports
Arrival ports by:
- alphabetical order
- country
- geographical areas
The Verdane investment fund sells Danelec to the GTT group
Paris
Danish company develops technologies for digitalization of maritime transport
Israeli forces attacked the port of Hodeyda
Jerusalem
IDF, measures taken to limit damage to ships
Vard signs new contract with Dong Fang Offshore for OSCV vessel
Trieste
It will be delivered in the first quarter of 2028
Collaboration protocol between the Federation of the Sea and WSense
Rome
Among the aims, to promote intelligent and sustainable management of marine resources
A conference on maritime engineering works and climate change in Rome on Wednesday
Rome
It will be held at the Auditorium Fondazione MAXXI
The 2024 general financial statement of the Eastern Adriatic Sea Port Authority has been approved
Trieste
It records a general administrative surplus of almost 283 million euros
Accelleron Industries Announces Further Investments in Italy
Baden
The aim is to strengthen technological leadership in fuel injection systems for the decarbonisation of the maritime sector.
UAE's AD Ports continues to invest in Egypt
Cairo/Abu Dhabi
Usufruct contract to develop and manage a logistics and industrial park near the port of Port Said
The 2024 final budget of the Central Adriatic Sea Port System Authority has been approved
Ancona
Green light from the Management Committee
RFI, tender awarded for maintenance and telecommunications enhancement works
Rome
Program worth approximately 180 million euros
Contract signed assigning CMA CGM the management of the container terminal at the port of Latakia
Damascus
Investments of 230 million euros expected in the first four years
Rizzo appointed extraordinary commissioner of the Strait Port System Authority
Messina
DHL Group revenues increased by +2.8% in the first three months of 2025
Bonn
Net profit of 830 million euros (+3.9%)
Purchase of area for new cruise terminal in Marghera completed
Venice
It is expected to become operational in the 2028 cruise season.
CMA CGM Completes Acquisition of Air Belgium
Marseille/Mont-Saint-Guibert
Mazaudier: Strengthen our air capacity with immediate effect
In the first three months of 2025, freight traffic in Albanian ports decreased by -1.8%
Tirana
Passengers also decreasing (-1.6%)
In 2024, 94.4 million tonnes of goods were transported on the Austrian rail network (+2.2%)
Vienna
31.8% of the total volume was achieved on routes longer than 300 kilometres
The final budget and the annual report 2024 of the AdSP of Sardinia have been approved
Cagliari
Pilot project for the unified issuing of port access permits for haulers
Interporto Padova's 2024 financial statements unanimously approved
Padua
Revenues up +7.3%
Redevelopment works underway at the agri-food hub of the port of Livorno
Leghorn
Works worth six million euros
Bluferries is ready to put the new ro-pax Athena into service in the Strait of Messina
Messina
It can carry up to 22 trucks or 125 cars and 393 people
Approved the financial statement for the financial year 2024 of the AdSP of the Ionian Sea
Taranto
424.8 million port works completed in the last decade
Kalmar reports lower quarterly revenue, higher new orders
Helsinki
In the first three months of 2025, net profit was 34.1 million euros (+2%)
Antonio Ranieri is the new maritime director of Liguria
Genoa
He takes over from Admiral Piero Pellizzari who was discharged from the service upon reaching the age limit
In the first quarter of 2025, China's CIMC recorded a 12.7% increase in container sales
Hong Kong
Revenues grew by +11.0%
PORTS
Italian Ports:
Ancona Genoa Ravenna
Augusta Gioia Tauro Salerno
Bari La Spezia Savona
Brindisi Leghorn Taranto
Cagliari Naples Trapani
Carrara Palermo Trieste
Civitavecchia Piombino Venice
Italian Interports: list World Ports: map
DATABASE
ShipownersShipbuilding and Shiprepairing Yards
ForwardersShip Suppliers
Shipping AgentsTruckers
MEETINGS
The fourth edition of the national conference "Interporti al centro" will be held on May 23rd
Rome
Organized by UIR, it is scheduled at the Interporto Rivers in Venice
A conference on maritime engineering works and climate change in Rome on Wednesday
Rome
It will be held at the Auditorium Fondazione MAXXI
››› Meetings File
PRESS REVIEW
Proposed 30% increase for port tariffs to be in phases, says Loke
(Free Malaysia Today)
Damen Mangalia Unionists Protest Friday Against Possible Closure
(The Romania Journal)
››› Press Review File
FORUM of Shipping
and Logistics
Relazione del presidente Nicola Zaccheo
Roma, 18 settembre 2024
››› File
Last year, the revenues of the Chinese group CMPort increased by +3.1%
Hong Kong
In the first three months of 2025, port terminals handled 36.4 million containers (+5.6%)
The financial statements of the AdSP of Western Liguria and the Central-Northern Tyrrhenian Sea have been approved
Genoa/Civitavecchia
Konecranes revenues increased by +7.7% in the first three months of 2025
Helsinki
343 million euros of new orders for port vehicles (+37.5%)
Kuehne+Nagel posts first quarter of growth
Schindellegi
The logistics group's net sales amounted to 6.33 billion Swiss francs (+14.9%)
Application by TDT (Grimaldi group) for the construction and management of 50% of the Terminal Darsena Europa in Livorno
Leghorn
The company has requested an extension of the duration of the current concession
In 2024, 58 million invested in the modernization of the ports of Livorno, Piombino and the island of Elba
Leghorn
The final budget and the annual report of the AdSP have been approved
EIB advice to strengthen climate resilience of the ports of Volos, Alexandroupolis and Patras
Luxembourg
It will assist port authorities in identifying and managing climate risks
In the first quarter the port of Valencia handled 1.3 million containers (+3.4%)
Valencia
Transhipment traffic decline
The Management Committee of the Central Tyrrhenian Sea Port Authority has unanimously approved the 2024 financial statement
Naples
SOS LOGistica will acquire the qualification of Third Sector Entity
Milan
The association currently has 74 members
In the first three months of 2025, freight traffic in the ports of Barcelona and Algeciras decreased
Barcelona/Algeciras
Hupac transfers intermodal service with Padua to Novara
Noise
Until now the other terminal was the one in Busto Arsizio
PSA SECH has operated the first 400-meter train at Parco Ferroviario Rugna
Genoa
Capacity up to 20 pairs of trains per day
The 2024 financial statement of the Eastern Liguria Port Authority was unanimously approved
The Spice
The war clearance preparatory to the expansion of the Ravano Terminal in La Spezia is nearing completion
The Spice
The AdSP has invested over 600 thousand euros in it
Francesco Rizzo appointed president of the AdSP of the Strait
Rome
He has repeatedly denounced the uselessness of the construction of the bridge over the Strait
US aircraft attack Yemeni port of Ras Isa
Tampa/Beirut
38 dead and over a hundred injured
In 2025 Stazioni Marittime predicts an increase in ferry and cruise traffic in the port of Genoa
MIT Mobility Report Highlights Rising Demand for Both Passengers and Freight
Rome
In the first quarter, cargo traffic in Russian ports decreased by -5.6%
St. Petersburg
Both dry goods (-5.3%) and liquid bulk (-5.8%) are decreasing
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