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Race to the top with second hand vessels

second hand vessels

Second hand vessels proved to be more popular with top carrier

Mediterranean Shipping Company (MSC) has been acquiring second hand vessels. Some industry observers speculated these investments are MSC’s attempts to overtake Maersk as the world’s largest carrier.

Tight competition between top 2 carriers
The fleet operating difference between Maersk and MSC is only 0.4 per cent. Maersk stands at 16.9 per cent while MSC is at 16.5 as at 21 June 2021. This is after the latter reportedly invested in 60 second hand ships across just 10 months. Media reports noted MSC’s 60-vessel purchase have a combined capacity of 257,000 teu and their fleet recently passed the 4m slot mark. In terms of current fleet trading, MSC is now just 120,000 slots behind 2m partner Maersk at the top of the liner rankings.

On MSC’s strategy to buy rather than charter vessels, an analyst, Alphaliner observed: “Although the value of second hand assets surged, the economics of buying rather than chartering still appear to make sense in the face of the continuously rising charter rates and the multi-year commitments that Non-operating owners (NOO) impose on charterers to fix their ships.”

Shipbroker, Clarksons reported that MSC bought Borealis Maritime’s 2005-built 2,474 teu Bomar Resolve for an undisclosed price, and Temas Line’s 2002-built 2,475 teu boxship Spring Mas for $29 million. The broker also reported in early June 2021 that MSC snapped up Reederei Nord Klaus E Oldendorff’s 2003-built 2,478 teu Nordbaltic, Awilco’s 2010-built 4,250 teu Alabama, as well as Borealis Maritime’s 2010-built 4,431 teu Schubert.

Brokers also confirmed MSC acquired the 5,018 teu Kowloon Bay boxship for $42.5 million. Alphaliner’s data added MSC’s other purchases include the 3,534 teu Songa Haydn, the 2,564 teu City of Hong Kong and the 2,492 teu Oregon Trader. The analyst highlighted MSC’s string of investments as unprecedented given no carriers have pursued the second hand vessel market in this scale.

Shipowners looking to expand their fleet with second hand vessels are encouraged to leverage Marine Online’s extensive network of various makes for purchase. Marine Online also has a team of experienced brokers who keep a close pulse on market movements. Both buyers and sellers are welcomed to tap onto Marine Online’s expertise for the best possible vessel transactions.

 

 

Marine Online News Team
Please email us at marketing@marineonline.com to contact the author for this article.

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