07-09-2021, 11:43 AM
(06-09-2021, 02:07 PM)opmi Wrote: [ -> ]I thought higher charter-in rates is bad for Samudera? For some of their ships, they hire whole ships long and sell freight on spot, right?
Higher charter rates are good for ship leasing company like Seaspan.
Is high charter-in bad?
Ship owners has been enjoying elevating charter rate, which trailed skyrocketed freight rate charged by shipping lines (carriers).
Unlike other carriers that own a portion of their fleet and charter the rest, ZIM charters its entire fleet. ZIM has been adding fleet capacity, capitalising on the extreme high spot rate.
The below link offers some good insight on this matter
https://hk.finance.yahoo.com/news/supply...18390.html
A forward-looking question on ZIM's strategy: What happens when spot freight rates eventually fall and the company continues to face very expensive lease obligations from multiyear charters signed at the market peak? ZIM has outperformed larger players in 2021 by trading increasingly longer-term lease obligations for higher near-term spot-rate exposure, but ship charters don't just drive current earnings, they drive future liabilities that must be paid for with future freight-rate income.
Samudera
Demand is higher than supply. How to increase capacity? a) Improved turnaround ie trips b) add vessels via buy (new built or used) c) add vessels via charter
a) Not much traction in spite of better planning and co-ordination due to port congestion.
b) New built take time about 2-3 years waiting. Used vessel may not be operational efficient. More importantly the buying price is very high.
c) Samudera is opting for charter-in with a combination of short and long term charter period
Samudera fleet capacity is 72% chartered. It has to continue its charter or else lose capacity. Highly unlikely for carriers to reduce capacity at such time - The worst times for shippers and the best times for shipping lines
High market price for used vessel
https://splash247.com/lauritzen-bulkers-...fic-basin/
A poorly condition 9 years old bulker was sold at a very firm $20m. The ship has doubled in value in a year. This article is on a bulker, but I believed the same situation pretty much apply to containership.