AXS-Alphaliner Newsl..

ALPHALINER Weekly Newsletter 2009-Week 17
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> MSC XIAN – alias CMA CGM DON PASCUALE (24-30 m – Redelivered to CMA
CGM around 05 April)
> MSC BENGAL – alias CMA CGM FAUST (24-30 m – Redelivered to CMA CGM
around 25 April)
> MSC BALTIC – alias CSCL AMERICA (24 m – Expiring this summer)
> MSC BELGIUM – alias CSCL OCEANIA (24 m – Expiring this summer)
As for the reported $10,000 daily rate negotiated with MSC for the 8,400
teu NRS ships, the owners will be taking a big hit as breakeven rates would
need to be in excess of $35,000/day. As a comparison, similar ships
ordered by Seaspan at HHI in May 2007 at a cost of $132.5 M per vessel
were fixed on 12-year charters to COSCO at $42,900/day.
Assuming that NRS can operate the ships on a running cost of $7,000 per
day, the reported $10,000 rate leaves a differential of $3,000 to repay
capital and financial costs. It is not much as these latter costs can be
estimated at around $27,000-28,000 for these ships, but it is still a better
option than sending them into lay-up, explaining perhaps why NRS
accepted such a deal.
So, MSC saves some $25,000 per day on total daily costs, had it ordered
these ships itself. MSC profits of a 12-24 months opportunity window for
these ships, and should it redeliver them at expiry of the charter, it will
have benefitted during that time of ship costs 70% lower than the best
costs its competitors could normally obtain (assuming the contract is a
straight time charter contract with no other conditions attached).
During the 12 months firm period, MSC will benefit of a daily cost of around
$1.2 per teu slot instead of the $4 per teu slot expected for such ships
(excluding fuel expenses, port dues, canal tolls and other voyage related
expenses).
Separately, MSC has also fixed five ships of 5,000 teu :
>NYK PROCYON – 48 mths - delivered last week as MSC SOCOTRA
>BELLAVIA – 12 mths – delivery early May
>OCTAVIA – 12 mths – delivery early May
>HS LIVINGSTON – 12 mths – delivery Q3 2009 (date unclear)
>HS HUMBOLDT – 12 mths – delivery Q3 2009 (date unclear)
MSC continues to build up market share while the entire industry is
grappling with an overcapacity challenge. It has defied the trend and
continues to add capacity at a time when most other carriers are trying to
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