SIMIC

LEADING shipping companies are engaged in fierce competition for a diminishing pool of pre-owned containerships, as highlighted by recent research from Alphaliner.

The study reveals a lack of new orders but a surge in acquisitions within the feeder-size range of 700 to 999 TEU, reports London's Loadstar.



According to Alphaliner, major carriers have been acquiring second-hand vessels from non-operating owners, with a total of 675 such acquisitions recorded over the past three years.



One player displaying significant interest in feeder tonnage is MSC, which has made an unprecedented move by acquiring 306 vessels this year alone, including 20 within the 700-999 TEU range.



However, the availability of feeder ships are dwindling due to owners' reluctance to invest in smaller vessels, leading to a scarcity in supply.



In 2021, amid the ongoing pandemic, there was a remarkable occurrence involving smaller-sized vessels owned by non-operating owners (NOOs).



These vessels secured charters at extraordinarily high rates, with some surpassing $100,000 per day.



This development sparked a buying frenzy among carriers, as these vessels proved to be highly profitable investments, often yielding substantial returns within a few months.



However, observers have raised concerns about the potential impact of the UN's International Maritime Organisation's (IMO) new Carbon Intensity Indicator (CII) regulations on feeder trades.



Feeder vessels typically operate on schedules that necessitate longer port stays and faster voyage times.



This contradicts the prevailing industry consensus favouring a slow-steaming approach as the preferred strategy for addressing CII in the short term.