Tagged: Vancouver

Week 41 at a glance

2013, Week 41 – from October 6 to October 13


Fleet & Finance


NWA closes ‘PS1’ in slow-season downshift and starts transpacific fleet carousel

The upcoming winter slack season on the northern hemisphere’s east-west mainline trades has prompted the New World Alliance partners to implement a transpacific capacity reduction program and remove one service string from their portfolio.

In mid-October, Hyundai Merchant Marine, APL and Mitsui O.S.K. Lines will therefore shut down their ‘PS1’ Transpacific service.

The loop, which connects China and Korea to the Northern WCNA will close after the HYUNDAI LONG BEACH’s final departure from Yantian on 12 October.

The ‘PS1’ is operated by Hyundai (one ship) and APL (five ships), with MOL and Hamburg Süd as slot partners. It presently deploys a fleet of six ships in the size range of 5,514 teu to 6,350 teu. The loop turns in six weeks and calls at the following ports: Yantian (Shenzhen), Hong Kong, Xiamen, Busan, Seattle, Vancouver, Yokohama, Kaohsiung, Chiwan (Shenzhen), Yantian (Shenzhen).

Closing the loop will have a negative capacity impact of 5,758 teu per week and per direction.

In order to distribute this capacity reduction more evenly across the entire American West Coast, the New World Alliance will accompanying measures to the ‘PS1’ closure and alter the weekly capacities of other transpacific services.

In order to mitigate the capacity impact on Seattle and Vancouver, the alliance’s ‘PNW’ and ‘PCX’ services will swap their fleets. The 8,900 teu ships presently trading on the ‘PCX’ will be moved to the ‘PNW’ loop, which services the Pacific North West with calls at Tacoma, Seattle and Vancouver. On this loop, the ships replace a set of 6,800 teu vessels that move on to sail on the California service ‘PCX’, which serves Los Angeles and Oakland.

While the vessel swap as such does not affect overall transpacific volumes, it removes some 2,100 weekly slots from California and adds them to the northern ports.

Seaspan signs ‘commitment’ to order five 14,000 teu ships at CSBC

The Vancouver and Hong Kong based non operating owner Seaspan, which this week firmed up long-term charter deals for five Hyundai-built 14,000 teu ships with Yang Ming, said it planned to order another five vessels of similar design at CSBC Taiwan – also for Yang Ming.

Seaspan on Tuesday confirmed that it had entered into ‘commitments’ with CSBC Corporation Taiwan to have constructed and to acquire the five containerships for an aggregate purchase price of approximately USD 550 million.

Concurrently with this newbuilding commitment, Seaspan signed a binding letter of intent with Yang Ming to enter into long-term, fixed-rate time charter contracts for these ships. The company disclosed that it expected to complete definitive time charter contracts with Yang Ming and definitive shipbuilding contracts with CSBC shortly.

The vessels are to be built at CSBC’s Kaohsiung shipyard and they are scheduled for delivery in 2016.

Over the course of 2015 and 2016, Yang Ming is thus to receive no fewer than 15 container ships of 14,000 teu from Seaspan.

Yang Ming’s orderbook furthermore includes two 6,250 teu ships from Japan. Built at Imabari’s Koyo Shipyard and chartered from the Imabari Group’s Shoei Kisen, these ships are sisters of the recently delivered YM MOVEMENT.

Seaspan to charter five more 14,000 teu ships to Yang Ming

Seaspan on Tuesday announced that the five 14,000 teu container ships which the company ordered in late July at Hyundai Heavy Industries, will be chartered out to Yang Ming.

The Vancouver and Hong Kong based non operating owner said it recently signed long-term, fixed-rate time charter contracts with the Taiwanese carrier for all five ships.

Seaspan ordered the vessels for a unit price of USD 107 to 110 million, which translates into a per teu slot price of USD 7,643 to USD 7,857. The newbuildings are slated for delivery in the second half of 2015.

The five ships add to five similar vessels that Seaspan ordered in January, also for long-term charters to Yang Ming. Seapan paid a total of USD 600 million for these ships: USD 120 million per unit or USD 8,571 per teu slot. Compared to the initial five ships, Seaspan was thus able to obtain a notable discount from Hyundai.

Seaspan also announced that it entered negotiations with Taiwan’s CSBC Shipyard to order another five ships of 14,000 teu. Scheduled for delivery in 2016, these ships are also earmarked for Yang Ming.