The renewed entrance of MSC Mediterranean Shipping Company into the secondhand market for feeder vessels is underpinning small boxship asset values.

The liner operator is purchasing a pair of smaller Wenchong-type feeder vessels despite the doubling of values since the start of the year.

The vessels being sold matching the description of the ships include the 1,740-teu Hansa Harburg (built 2008).

That is the latest in a string of older container ships being sold by Germany’s Leonhardt & Blumberg and is valued at around $14.5m, according to Vesselsvalue.

The other ship of the Wenchong design being hived off is the 1,740-teu Green Ace (built 2005).

That is the smallest ship in the fleet of New York-listed owner SFL Corp and is reported sold for around $11.5m.

The sale of the two Chinese-built ships comes as strong demand for charter vessels is placing upward pressure on asset values.

That has mainly benefited the larger container ships in the year to date, but the latest deals suggest smaller tonnage is getting its share of the spoils.

Charter boom

Charter rates this year have reached their highest levels in 15 years, aside from the record highs seen during the Covid era.

Six to 12-month charter rates for 1,700-teu feeders stand at $22,000 per day, slightly below the July peak, according to Clarksons data.

Some liner operators have resorted to taking vessels for longer periods next year to keep rates low.

This approach has seen limited success, as demonstrated by Chinese liner giant Cosco’s recent fixture of two smaller feeder vessels.

Cosco has taken the 1,930-teu Kanway Lucky (built 2022) and 1,781-teu Celandine (built 2023) for between 18 and 24 months at close to $20,000 per day.

Some tonnage providers have opted for shorter terms in expectation of a continued strong market in early 2025, say brokers.

That has pushed up rates for small feeders such as the 1,019-teu Rotterdam Trader (built 2003), which is reportedly taken for up to nine months at a daily rate of $15,500 with X-Press Feeders.

Some owners are cashing in on the mini-boom by selling smaller ships that are nearly 20 years old.

The 1,118-teu Lila Canada (built 2006) has been sold by Lila Global, the Dubai-based shipowner affiliate of cash buyer GMS, for a price of over $6m.

The charter market remains on a roll with rates in some sectors at their highest in two years.

The dwindling supply is forcing owners to pay a premium for short, prompt charters.

In the larger sector, some vessels are even being forward-fixed a year in advance.

Forward fixtures

Cosco has again been active taking two classic panamax-sized ships from Greek owner Costamare.

The 5,624-teu Glen Canyon (built 2006) has been taken for three years with delivery in the third quarter of 2025 at $36,000 per day.

Costamare has also fixed the 4,255-teu Norfolk (built 2009) at $35,000 per day starting next May.

More prompt charters are getting a premium over that rate. Greece’s Chartworld Shipping has fixed the 4,250-teu Shekou Star and Vancouver Star (both built 2007) with Germany’s Hapag-Lloyd for three years at $37,000 per day, say brokers.

“Owners are likely to leverage the current momentum to push rates above the last agreed levels, though operators may face difficulties obtaining approvals for these rates,” said shipbroker Braemar.

“This could lead to an interesting race towards year-end — an unusual trend for this time of year.”

Download the TradeWinds news app
The news app offers you more control over your TradeWinds reading experience than any other platform.