HMM Joins MSC and CMA CGM in Opting for Pre-Owned Container Ships
2 months ago
HMM Joins MSC and CMA CGM in Opting for Pre-Owned Container Ships
Rising charter costs have prompted HMM to follow in the footsteps of major ocean carriers MSC and CMA CGM by acquiring older secondhand feeder ships.
HMM is reportedly negotiating the purchase of three 2005-built feeder ships: MPC Container Ships’ 2,500 TEU AS Paola and Regional Container Lines’ 2,400 TEU Wanda Bhum and Xutra Bhum.
An HMM spokesperson stated, “HMM is actively exploring opportunities for fleet expansion and diversification. We are considering the acquisition of second-hand boxships for strategic reasons. However, these discussions are still ongoing, and we cannot confirm any specifics at this time.”
According to VesselsValue, which has reported on the transactions, the estimated purchase price for each vessel is around US$20 million.
Despite a recent decline in long-haul freight rates, charter rates for container ships remain high, particularly for smaller vessels, as larger ships have largely been acquired. For example, Maersk recently chartered a 2004-built, 2,500 TEU vessel, Julius-S, at US$24,000 per day for two years.
Linerlytica analyst Tan Hua Joo explained that HMM is likely targeting these ships for its intra-Asia services. He noted, “Carriers often turn to the charter market for vessels of this size due to their availability compared to larger ships. However, with current high charter rates, some carriers, including HMM, are opting to buy second-hand vessels, which can be a more cost-effective option.”
The ships in question are all 19 years old, making them relatively inexpensive with minimized downside risks.
Source: ContainerNews