The latest reported container ship sale provides a stark illustration of how much asset values have fallen in weaker markets.

MPC Container Ships (MPCC)’s 2,824-teu AS Carinthia (built 2003) was worth $54m at the peak of record markets last April, according to VesselsValue.

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Now rumours have linked the vessel to a sale to Chinese interests for around $7.5m, with a dry-docking and special survey due.

Alphaliner said: “This price clearly shows how much secondhand prices have fallen in the past weeks and months.”

Last June, a slightly younger vessel was sold for $45m, the consultancy said.

The AS Carinthia is chartered to Asian operator RCL, a deal that is expected to end in April.

The German owner bought the former Wilhelmsen Ahrenkiel Ship Management unit in 2017 for $5.1m in a bank sale.

VesselsValue has a value of $12.05m on the ship now.

MPCC told TradeWinds it “aims to maintain timely, precise and transparent communications with regards to its ongoing business, including S&P and chartering activity, but has a policy of not commenting on external reports relating to these topics”.

The container feeder ship owner said the AS Carinthia is one of three vessels remaining in its fleet that are owned 50% through a joint venture with Bluewater.

This number has been cut from eight since 2021.

The vessel is also one of the oldest in the fleet.

Strong coverage from asset values

Fearnley Securities said the deal will net $3.75m for MPCC — less than the $5.8m it had modelled for a disposal.

But Fearnley analysts said the Oslo-listed tonnage provider still has strong residual value coverage.

Assuming scrap values of $350 per ldt, and discounting contracted Ebitda, the investment bank calculates the market cap is covered 1.4 times by residual ship values.

At the end of 2022, TradeWinds reported that MPCC had bucked a sharp fall in its share price to emerge as the highest dividend-yielding company on the Oslo Stock Exchange.

Distributions to shareholders were NOK 4.2bn ($440m), amounting to a 38.3% dividend yield — the highest for the year in Oslo.