In some positive economic news the shipbroker Braemar Shipping reported that China’s economy, which saw a severe decline in the first quarter, returned to growth in the second three-month period.
Figures released last week show China’s economy grew 3.2% in the first three months of the year, with the country’s industrial production increased 4.8% year-on-year in June 2020, “the largest increase in six months,” said the broker.
While the latest figures from Beijing do not mean that the economic stagnation is over they could be an indication that the Covid-19 tide is finally turning.
Braemar, also pointed to the increase in enquiries for vessels as prospective buyers judge that “asset values have hit a bottom, certainly in the larger sectors with charter rates firming slowly”.
According to the broker Costamare has secured “further Japanese built 6,300TEU vessels from Shoei Kisen in an off-market deal”.
However, feedership, asset prices “are still feeling the squeeze” as low charter rates coupled with short and flexible periods remain the norm.
The 2,450TEU gearless Port Adelaide, built in 2007 at Naikai Zosen has invited offers, and Braemar says “it will be interesting to see what levels she sees this time around”. The Unisky, a 1,011TEU gearless vessel, built in 2009 at the Sainty Shipyard, has been sold to Jens & Waller on private terms, “presumably to enter a Maersk charter”, says Braemar. While the gearless, 987TEU AS Lauretta, built in 2008 at Daesun Shipbuilding has been sold on private terms to German buyers.
Further signs that the market is beginning to move has come with news that lines are returning cancelled sailings to service, although the levels are low and for some it is an indication that the lines cut too much capacity rather than a significant return of demand.
“The fewer new blank sailings does not mean that demand has come back to normal, as it dropped -15.9% year-on-year in April and -11.4% year-on-year in May – but rather that the carriers seem to believe that their current blank sailings programme is adequate – aggressive even, considering that a host of blank sailings have been re-instated in recent weeks,” wrote Alan Murphy from Sea-Intelligence.
Even so during the week of 13-19 July carriers announced three new blank sailings on the Transpacific and two more on the Asia-Europe trades, reports Sea-Intelligence.
The Danish consultancy added, “On top of that, 2M continues to suspend the AE2/Swan and AE20/Dragon on Asia-Europe, while THE Alliance have also extended the suspension of their FE4 service.
Although, Hapag-Lloyd announced today, 21 July, that the Far East 4 (FE4) loop will see an extra vessel, “In conjunction to the adjusted demand during this Covid-19 pandemic period, “We will extend our weekly extra loader programme for another six weeks [from mid-August to the end of September] week 34 until week 39.”
The port rotation is: Busan – Shanghai – Ningbo –Yantian – Singapore – (Suez Canal) – Southampton – Hamburg – Antwerp – Rotterdam – (Suez Canal) – Singapore – Hong Kong – Yantian – Busan.
