AP Moller-Maersk appears to be planning to grow its feeder boxship fleet despite last week ruling out investment in big containership newbuildings anytime soon.
Maersk is believed to be at an “advanced stage” of newbuilding discussions with China’s Jiangnan Shipyard for up to 10 feeder containerships of 2,200 teu, according to shipbuilding sources.
Newbuilding stampede
If confirmed, the world’s largest liner operator would be joining something of a shipping company stampede to renew and expand feeder tonnage.
“The deal is for five firm vessels plus five options,” one shipbuilding player said. “There is a possibility Maersk and Jiangnan may be able to conclude the deal before the year ends.”
A Jiangnan official declined to comment on the shipyard’s activities, citing contract confidentiality.
Maersk said it did not comment on market speculation. A spokesman added: "As a global operator of more than 750 vessels we are continuously reviewing our fleet composition to ensure it meets our operational needs now and in the future.
"This includes reviewing the market for container vessels – large and small, chartered, new and secondhand."
The world’s largest liner operator has been keeping a tight grip on spending given its strategic shift from a conglomerate to a container and logistics specialist, which it has undertaken with a stated aim of retaining its investment grade.
However, with Maersk Oil and Maersk Tankers now separated, and Maersk Drilling set to be spun-off with a listing next year, the group has a far clearer view of its future balance sheet.
During the company’s third-quarter earnings presentation last week, Maersk chief executive Soren Skou said the group was “not planning to order any large ships before at the earliest 2020”.
But he confirmed the group has earmarked about $400m to fund ships it has on order for delivery in 2019 and had committed $80m to install scrubbers on selected ships.
News of Maersk’s interest in a feeder containership order was first reported in TradeWinds in August. At that time, the company was said to be seeking 1,900-teu ships and had approached shipyards in Japan and China.
Yard prices
No price has been disclosed for the possible 2,200-teu newbuildings at Jiangnan, but shipbuilding players say the cost per ship would be in the high $20m range.
Shipbuilding prices have increased steadily in the past 12 months due to rising material costs and a strengthening US dollar.
TradeWinds understands the price for each proposed 1,900-teu newbuilding was in the low $20m range in January, but shipyards are now asking about $27m per vessel.
Larger 2,800-teu ships were costing $37m a piece, but have now risen to more than $40m each.
Last week, Taiwan’s Evergreen Marine disclosed it had booked four 2,500-teu newbuildings at Jiangnan Shipyard through its wholly owned subsidiary Evergreen Marine (Hong Kong).
It said the cost would be between $124m and $140m for the quartet, meaning each vessel is costing between $31m and $35m.
Delivery is slated for the second half of 2020.
Demand for feeder containership newbuildings has been strong this year.
Feeder stampede
According to Clarkson’s Shipping Intelligence Network, more than 110 feeder containerships of between 700 teu and 2,800 teu have been ordered.
Japan’s Imabari Shipbuilding, Hyundai Mipo Dockyard of South Korea and Chinese state-owned Huangpu Wenchong Shipbuilding are the top three yards to have won orders.
Shipping lines that booked the vessels include Wan Hai Lines, Cape Shipping, China Navigation Co, Evergreen Marine, Nissen Kaiun and XT Group.
