Maersk Line has begun taking containerships from the charter market on long-term periods.
The move by the AP Moller-Maersk subsidiary, which is the world’s leading liner operator, has raised hopes of a fundamental shift in the direction of the container charter market away from short-term fixtures.
The Danish operator is committing to two-year to three-year charters on a number of vessels between 1,700 teu and 5,600 teu, said containership brokers. The identities of the ships have not been revealed.
So far, Maersk Line remains the only major operator to be adopting a longer-term strategy for part of its fleet.
However, there are reports that at least one other charterer has taken a vessel long term.
KMTC deal
South Korean operator Korea Marine Transport Co was linked with taking a Mitsubishi Heavy Industries-built vessel of 8,500 teu for three years at an undefined rate, brokers said. The ship is believed to be either the Seroja Tiga or Seroja Empat (both built 2010).
The move by Maersk Line is raising hopes that operators will need to hedge their charter positions at a time of tightening spot market supply.
Brokers added that recent fixtures are not scrubber related, and that Maersk Line is homing in on certain designs including high-reefer and ice-class designs.
Maersk must have felt this is the time when the only way is up for the market
Containership source
“Maersk must have felt this is the time when the only way is up for the market,” said a containership source.
Unusually high number
Some estimates suggest that of nearly 300 containership fixtures this year, an unusually high number of about 40 have been conducted for a minimum of 12 months.
Such developments are welcomed by tonnage providers.
Hanse Bereederung managing director Michael Zankl described recent market developments as “a good sign”, which suggests the container shipping market may have bottomed out.
This is not yet a full-blown recovery, as there are still some ships idle. But we sense there is some momentum underpinning the market right now
Clarksons
The Maersk Line fixtures come as the market has been rapidly improving for larger containerships.
One of the Northern J vessels in the Blue Net fleet, the 8,800-teu Northern Jasper (built 2009), was recently fixed for $24,000 per day on a 12-month charter to Israeli operator Zim.
The rate is about $2,500 per day higher than what a sistership obtained a month ago.
So far, that is the only segment that has risen significantly, and the period charters are understood to have been taken at relatively conservative market levels.
“This is not yet a full-blown recovery, as there are still some ships idle,” Clarksons said in its monthly report. “But we sense there is some momentum underpinning the market right now.”
Some reluctance
Some shipowners remain reluctant to fix longer term at today’s levels, in expectation of better rates later in the year.
One European broker conceded that the number of longer-term fixtures were index-linked or split at different rate levels over time.
There had also been a shift among Asian charterers who were also switching from fixing at one to three months to longer-term fixtures of 12 months, he said.
But he added that the question remains over whether the container market will improve at the end of the current peak season.
“I think the next couple of weeks will give us a better answer whether this was a big fight to lock down a few ships, or whether it is continuous demand that will continue throughout 2019.”
