Owners of smaller boxships — long the Cinderella of the container ship market — are cashing in on a big rise in vessel values.
A flurry of ship sales involving feeder-size boxships follows a rise of up to 80% in values this year.
The activity has been led by German owners, a country that remains a traditional haven for small container ship tonnage providers.
Managing owners Okee Maritime, Leonhardt & Blumberg, Vega Reederei, HS Schiffahrts and Reederei Horst Zeppenfeld are all selling smaller boxships.
They are hiving off vessels despite a booming charter market where a number are being forward-fixed.
Recent sales see Okee disposing of the 1,732-teu Okee Alicia (built 2007).
The vessel has been sold to Dubai-based Indian Ocean specialist carrier United Africa Feeder Line.
The price has not been disclosed but the ship is worth upwards of $12m, according to VesselsValue. That is around double what Okee is believed to have paid to acquire the boxship some five years ago.
Steady flow
Other sales by German owners suggest the price could be higher in the booming market.
Leonhardt & Blumberg is said to have sold the 1,732-teu Hansa Wolfsburg (built 2007) for a shade under $14m, having received seven offers, say brokers.
Demand is equally as strong for modern tonnage.
The 1,800-teu Vega Daytona (built 2023) is in the process of being sold to Chartworld Shipping of Greece for $32.7m, although a Vega spokesperson said nothing has been concluded yet.
The price is “a number well in excess of last done and one that will have a meaningful impact on the remaining modern-eco/resale opportunities in the segment”, says Clarksons in a monthly note.
Another German owner, HS Schiffahrts, has reportedly sold the 1,024-teu HS Busan (built 2006) just a year after acquiring the vessel.
The ship is reported sold to undisclosed interests for $7m.
That follows the sale of the 1,347-teu Algol (built 2006) to Element Shipmanagement of Greece.
The Algol was the last container vessel in the fleet of Reederei Horst Zeppenfeld and operates today in the Greek owner’s fleet of six boxships.
Rapid rise
Asset values for small container ships have risen since the start of the year as Red Sea diversions have driven up demand.
The most significant rise has been for 10-year-old feeder vessels of 2,750 teu.
Such ships have seen average values appreciate by 80% year to date, from $15m to $27m, according to Clarksons.
Significant rises have also been logged by smaller 1,000-teu feeder vessels.
These are up 61% year to date, from $9m to $14.5m.
That has flushed out sellers outside of Germany keen to make a profit.
Dubai-based Sea Sands Shipping is selling the 2,890-teu Palermo (built 1998) to Chinese interests at $11.9m, said brokers.
Sea Sands bought the former Conbulk-owned vessel in July 2023 for a reported $8.6m.
Separately, Greek owner Contships has divested the 966-teu Contship Eve (built 2008) for more than $8m.
The vessel is being sold to German owners against a 12-month charter to MSC Mediterranean Shipping Company at $9,000 per day.
More in the pipeline
Brokers expect more deals to emerge in the coming weeks as end users and asset players look to procure units in a rising charter market.
Clarksons’ Containership Secondhand Price Index has increased by 24% since the end of 2023.
Values have been underpinned by soaring charter market rates, which have again reached exceptional territory.
Clarksons’ Containership Basket Timecharter Rate Index stood at 172 points at the end of June, up 158% since December 2023.
That is the highest level for the charter index outside of the unprecedented Covid boom.
Increased chartering demand has been boosted as liner operators search for extra-loaders and feeders.
Indicative six to 12-month time-charter rates for a 4,400-teu vessel stood at $47,500 per day at the end of June.
That is around 180% up on mid-December.
It is close to the $50,000 per day seen during the 2004/2005 boom, according to Clarksons.
It is, however, still down on the Covid boom rate assessment, which reached $121,500 per day.
