HMM follows MSC and CMA CGM in moving to used containerships

Photo: Marius Steinke

High charter costs have prompted HMM to follow MSC and CMA CGM in buying used feeders.

A spokesperson for HMM told Container News that the company is currently in discussions to buy three feeders built in 2005. These are the 2,500-TEU AS Paola from MPC Container Ships and the 2,400-TEU Wanda Bhum and Xutra Bhum from Regional Container Lines.

An HMM 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 reported that HMM had purchased the vessels, estimated that each ship was sold for around $20 million.

Container charter rates have remained the same despite the adjustment in long-haul freight rates. In particular, the focus is now on smaller vessels as the larger vessels are almost fully booked.

Maersk recently chartered a 2,500-TEU vessel, the Julius-S, built in 2004, for $24,000 a day for two years.

Linerlytica analyst Tan Hua Joo told Container News that HMM is buying the vessels for its intra-Asia services.

“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 minimized.”

Source: Phaata.com (via Container-News)

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