Second-Hand Container Ship Sales Decline

Second-Hand Container Ship Sales Decline

In 2023, the second-hand sales of cellular container vessels experienced a notable decline for the second consecutive year, with a total of 285 ships, amounting to 934,523 TEU (Twenty-foot Equivalent Units), changing hands. This downturn follows a record-setting year in 2021, and industry analysts attribute the decline to various factors impacting demand.

One significant factor influencing the market is the substantial influx of newbuilding tonnage, which commenced in mid-2023. The surge in new capacity, combined with the implementation of the International Maritime Organization’s (IMO) Carbon Intensity Indicator (CII) regulation, has created challenges for potential buyers. The CII regulation is expected to make older, smaller, and less energy-efficient ships more expensive to operate, subsequently reducing their value and deployment potential.

The impact of these changes is evident in the demographic shift of sales in 2023. The total TEU sold dropped by over 10% compared to the previous year, with 324 ships of 1.07 million TEU changing hands in 2022. Both 2022 and 2023 figures fell significantly short of the 2021 record, where carriers sought to maximize available ships to capitalize on explosive rates, with 598 units of 2.04 million TEU changing hands.

The sale and purchase market, representing just 3.5% of the total fleet in 2023, witnessed a decline from 4.2% in 2022 and a significant drop from the 8.3% recorded in 2021. The second half of the year proved considerably weaker than the first, with average monthly sales dropping from 34 ships in the first half to 14 ships in the latter half of the year.

Sales of vessels aged 20 years and over surged in 2023, comprising nearly one-third (32%) of all transactions, a significant increase from the previous year’s 19%. Despite the CII regulations, sales involving vessels over 15 years of age reached 62%, up from 55% in 2022. Notably, MSC and CMA CGM collectively accounted for one-third of all purchases, with MSC alone acquiring a quarter of the units changing hands.

Vessel prices experienced a continuous decline throughout 2023, losing 20-30% of their value depending on the ship type. This correction prompted smaller shipping lines and Non-Operating Owners (NOOs) to re-enter the market, with carriers like Arkas, FESCO, Mahoney, Medkon, NPDL, and Transworld actively acquiring tonnage. On the NOO side, MPC Container Ships, GSL, Technomar, Cosmoship, Peter Doehle Schiffahrt/Ernst Russ AG, and Conbulk emerged as the most active buyers.

Looking ahead to 2024, uncertainties loom over second-hand vessel prices. The industry initially anticipated overcapacity, driven by a substantial influx of newbuildings. However, recent events in the Red Sea, necessitating extra tonnage to offset Cape of Good Hope re-routings, may alter the market dynamics. Despite a large order book, a potential rebound in demand, even for older ships, and a recovery in asset prices could become plausible, especially if the conflict in the Near East persists without a swift resolution.

Fuente: Alphaliner

Deja un comentario aquí:

This site uses Akismet to reduce spam. Learn how your comment data is processed.