MSC Mediterranean Shipping Company is continuing its boxship buying spree.
The Geneva-based organisation has purchased the 6,750-teu Northern Magnitude (built 2003) from its German owners for a knock-down price.
According to brokers, the 20-year-old vessel is sold for prompt delivery to the Swiss liner giant at a reported $17m.
On paper, the German-owned boxship has an estimated value of closer to $24m, according to VesselsValue.
But the V.Ships-managed container ship is due for a special survey and requires substantial investment, according to shipbroker Braemar.
MSC already operates nine units of the Daewoo 6,750-type vessels in its fleet.
The company is estimated to have bought 325 secondhand boxships since it embarked on an unprecedented purchase campaign in August 2020.
MSC continues to buy despite charter rates for midsize and larger vessels losing their resilience.
That has resulted in more relets as lines seek to adapt to lower demand and volumes.
According to brokers, south Korean operator HMM has relet the 6,800-teu Hyundai Singapore (built 2006) to rival liner operator Orient Overseas Container Line, commonly known as OOCL.
The vessel is reported to be fixed to the Hong Kong-based carrier for six months at a rate of $28,500 per day.
In a separate deal, Greek owner Costamare Inc is understood to have sold the 4,890-teu Oakland (built 2000) following the expiration of its charter with France’s CMA CGM.
The vessel is reportedly committed to China-based buyers at a price below $12m.
Shorter fixtures
Rates for traditional panamax-sized boxships are also dropping, with fixtures below $20,000 per day being reflected more widely.
The Zodiac Maritime-owned, 4,300-teu Xiamen (built 2006) is reported fixed to Japan’s Ocean Network Express (ONE) for 11 to 14 months at $18,000 per day.
That is a similar rate to what vessels may have obtained some three years ago.
Time-charter rates for container vessels are at their lowest level since November 2020, according to indices produced by Clarksons Research.
The weaker market is also reflected in shorter fixtures.
Clarksons noted in its monthly review that average periods in August were seven months, down from 17 months in June.
“Charter rates are expected to continue to soften as supply growth continues to build [2023 forecast: 8%] and more charter vessels redeliver,” the shipbroker said.
The analyst added some 14 container vessels were sold in August, which marked the second-lowest tally this year.
“Most liners and tonnage providers seem to share the view that further downward movement in asset values is likely in the coming months and have consequently adopted a ‘wait-and-see’ approach,” the shipbroker said.
