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Containership charter market shows signs of firming

GREEK shipowner Danaos has chartered one 10,100-TEU containership to Yang Ming and two 10,100-TEU ships to OOCL, which were previously on long-term charter to Hanjin Shipping when the South Korean shipping line entered into receivership last August.

One broker source, however, said the fixed rate hire is "only in the low teens", compared with Hanjin's US$54,000 per day.

Danaos said during its results conference recently that it had submitted an unsecured claim to the Seoul Bankruptcy Court of $598 million to cover unpaid charter hire and compensation for the early termination of the charter party contracts on the three ships, together with five 3,400-TEU vessels also on charter to Hanjin, reports London's Loadstar.

Despite the substantial decline in revenue, Danaos is more upbeat now that the vessels are re-chartered, and the market is showing signs of firming as a result of a new wave of enquiries by carriers.

According to Alphaliner, the increased activity has reduced the number of available 7,500-11,000 TEU ships, down from 17 to eight in the past two weeks, driving rates up and improving fixture conditions for owners.

However, the panamax market remains in a slump, with 54 ships of 4,000-5,300 TEU still idle, according to the latest data, with some 34 vessels in hot or cold lay-up.

Scrapping rates are continuing to improve as the price of steel goes up around the world, with current rates at around $350/LDT, and are expected to rise further.

Analysts predict that the final amount of cellular tonnage sent to breakers' yards this year will exceed 700,000 TEU, beating the record of 658,000 TEU set last year.