Operators of multi-purpose vessels (MPV) are expecting a positive financial gain from firming rates in container shipping.
Since the financial crisis in 2008, the MPV segment has struggled with overcapacity, exacerbated by competition from container and dry bulk carriers as those segments also came under pressure.
Container rates are now at levels not seen since 2010, due to tight capacity and container shortages and carriers are competing less with MPV operators for multipurpose cargoes, as they re-focus on traditional cargoes in consumer goods.
Speaking to Container News, AAL Shipping’s managing director, Kyriacos Panayides, said, “We have even started to see increased inquiries for container transport on certain trade lanes where our transit times match container schedules. Furthermore, we also expect some steel shippers to move back to a ‘breakbulk’ mode of transport, which will be very welcomed.”
An executive at another MPV specialist, BBC Chartering, told Container News that the container segment’s improving health has spillover effects. “It’s been easier securing cargoes this year, as we fight less with container carriers,” said the source.
There has been talk of container carriers seeking out MPVs for charter, particularly vessels that have container capacity.
This month, Danish freight forwarder DSV chartered three MPVs, each capable of shipping 650TEU of containers, to launch a service between Denmark and China.
However, Panayides emphasised that container carriers are unlikely to be interested in MPVs that have insignificant container capacity.
He said, “’Container-friendly MPVs’ – the ones with significant cargo intake – are few and far between, with the majority already employed to cover existing multi-purpose carriers’ needs. Moreover, smaller MPVs – which make-up the lion’s share of the global fleet – are not container friendly and their TEU capacity is unattractive to container lines. In this sense, we do not expect that such activity will have a significant impact on current MPP business operations.”
Container consultancy Alphaliner noted that container carriers are targeting ships with good speeds and high container intakes.
In November, South Korean liner operator HMM chartered the MPV Thalia, which carries 1,888TEU of containers, for five to six months, assigning the vessel to a South Korea-Russian Far East service.
IMAGE: Kyriacos Panayides (Credit AAL Shipping)
Martina Li
Asia Correspondent
