We are downgrading Danaos to Neutral from Outperform, and Seaspan to Underperform from Neutral. – Credit Suisse
Despite both Danaos’ (ticker: DAC) and Seaspan’s (SSW) solid contact coverage in 2012, we are downgrading both names under a backdrop of capacity rationalization by their customers. The liner industry (customers) is trying to figure out how to make money and capacity reductions seem to be doing the job.
Idle ship capacity stands at 5% of the fleet, and we expect more not less as new ships are delivered this year. This should keep charter rates (already around cash costs) at depressed levels into 2013 and drag down asset values along the way.
Rationalization and ton-mile contraction is not good for ship owners. Last year was another tough year for the liner industry with the major liner companies returning to their losing ways. This has driven many shippers to rationalize their services, which has included increased vessel-sharing arrangements (think better-utilized vessels but less of them). Additionally, while we expect strength in regional trades such as Intra-Asia and Far East-Middle East, we expect slower growth on the Far East-Europe trade and the transpacific trade to drive ton-mile contraction. In other words we are not expecting the container trade to be a two times multiple of global growth.
Fleet growth is slowing, but still a lot on the way. We expect containership fleet growth of roughly 9% in both 2012 and 2013 versus our containership demand growth estimates of 5% in 2012 and 7% in 2013 — this still points to a supply demand mismatch. Barring a surge in global container trade, we expect charter rates to remain at depressed levels in 2012 and below midcycle levels in 2013.
– Gregory Lewis and Anthony Sibilia, Barrons Online
The cargo ship Vezhen did damage a subsea cable linking Sweden and Latvia last month but it was an accident, not sabotage, a Swedish prosecutor said on Monday, adding that the Maltese-flagged vessel had been released.
WASHINGTON, Jan 30 (Reuters) – When Marco Rubio arrives in Latin America this weekend on his first foreign trip as Donald Trump’s secretary of state, he’ll find a region reeling from the new administration’s...
US President Donald Trump has raised the stakes for a meeting of an OPEC+ ministerial panel next month, with his call for the group to lower oil prices.
January 24, 2025
Total Views: 1330
Sign Up Now for gCaptain Daily
We’ve got your daily industry news related to the global maritime and offshore industries.
JOIN OUR CREW
Maritime and offshore news trusted by our 108,989 members delivered daily straight to your inbox.
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.