High charter costs have made HMM join two giant ocean carriers MSC and CMA CGM in buying elderly secondhand feeder ships.
HMM’s spokesperson told Container News that the company is currently in discussions to buy three 2005-built feeder ships. These are MPC Container Ships’ 2,500 TEU AS Paola and Regional Container Lines’ 2,400 TEU Wanda Bhum and Xutra Bhum.
HMM’s spokesperson said, “HMM actively seeks fleet expansion and diversification possibilities. We are considering second-hand boxships for strategic reasons. However, the matter referred to is still under review and we are not able to confirm any details at this time.”
VesselsValue, which has reported that HMM has bought the ships, estimates that each vessel was sold in the region of US$20 million.
Charter rates for container ships have been holding up despite the correction in long-haul freight rates. Particularly, the focus is now on smaller ships as larger vessels have almost been snapped up.
Maersk recently chartered a 2004-built, 2,500 TEU vessel, Julius-S, for US$24,000/day for two years.
Linerlytica analyst Tan Hua Joo told Container News that HMM is buying these ships for its intra-Asia services.
He commented, “It is common practice for carriers to rely on the charter market for ships of this size as these candidates are more readily available compared to the larger sizes. But with current high charter rates, some carriers, including HMM are buying second hand tonnage in this case as it may work out cheaper for them.
“The ships purchased by HMM are all 19 years old so they are comparatively cheap and downside risks are minimised.”
Martina Li
Asia Correspondent
