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ALPHALINER

Weekly Newsletter

Web: www.alphaliner.com | E-mail: [email protected]

Volume 2010 Issue 44 26.10.2010 to 01.11.2010

| Sales: [email protected]

Alphaliner Weekly Newsletter is distributed every Monday. The newsletter is available upon subscription. Information is given in good faith but without guarantee. Please send your feedback, comments and questions to [email protected]

Chart of the week

·

The intra-Asian trade's annual slot capacity (excluding the Middle East and Indian subcontinent) is estimated at about 70 Mteu. Thereof, an estimated 34 Mteu caters for intraregional cargo, whereas 23 Mteu are of capacity are provided as part of feeder trades. Domestic and/or coastal trades account for an additional 13 Mteu. Thereof, China's domestic services (excluding intra estuary shuttles) account for about 8 Mteu.

Intra-Asia Trade : Annualised Trade Capacity (Estimate as at 1 Nov 2010)

Intra-Asia Annual Slot Capacity in TEU Millions 0 5 10

Dedicated intra-Asia Capacity

15

·

NE Asia-SE Asia NE Asia only SE Asia only S China/Twn/Phil/Viet China coastal services

Inter-port capacity on trunk routes

·

Slots on E-W trunk routes

INSIDE THIS ISSUE:

IntraIntra-Asia Market 1

Slots on other trunk routes

© Alphaliner

Service Updates 3 CKYH plans only 1 FE-N Eur sailing omission for winter FAL 5/AE-8 to make double calls at Rotterdam Grand Alliance changes German call on Loop C MSC adds Valencia-Montreal feeder shuttle MSC alters Med-ECSA services MSC introduces 8,000 teu ships to S Africa /Mauritius Maersk revises W Africa svcs Adds an Angola loop Maersk Line to launch a direct Morocco-Russia service PIL expands Asia-Africa services CSAV to re-enter West Africa with Durban relay Interasia adds two loops through slots on WHL/YM HDS Lines adds Iran calls on its FE-Med service Secil Maritima introduces containership on Angola svc Corporate Updates COSCO Holdings 3Q profits surge to $312M CSCL 3Q net profits soar to $318M Evergreen reallocates orders 8,000 teu orders CSAV posts record 3Q profits of $149M Japanese carriers post improved FY2Q results Delivery Updates October deliveries 8

Intra-Asia Slots

Coastal Slots

Feeder/Relay Slots

Understanding the intra-Asia market

Carriers turn to the intra-Asia market as the container shipping industry's new focal point, as the trade's growth is expected to outpace that of the Asia-Europe and Transpacific markets. However, the actual size of the intra-Asia market remains poorly understood and current estimates of its size range from 14 Mteu to 26 Mteu per year. Alphaliner's analysis of the trade's capacity suggests that total slots deployed on the intra-Asia sector amount to about 70 Mteu per year. Thereof 34 Mteu are estimated to be used for intra-regional cargo and 23 Mteu for feeder trades. Additionally, there are about 13 Mteu of slot capacity deployed on domestic and coastal trades which previously have not been included in most estimates of market volumes. An estimated 85% of the trade's capacity is currently deployed on dedicated intra-Asia services, whereas the remainder is offered through inter-port slots on main line operators' trunk routes Statistics compiled by the Intra-Asia Discussion Agreement (IADA) suggest that the intra-Asia trade volumes will reach 14 Mteu this year. However, these statistics only include liftings data submitted by IADA's 30 members and thus exclude several major carriers, notably MOL, Sinotrans, STX Pan Ocean, Grand China Logistics, MISC Bhd and MSC. Alphaliner's capacity survey shows that over 100 carriers are involved in the intra-Asia trades and IADA carriers only account for about 60% of the total capacity deployed on the intra-Asia trades.

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ALPHALINER Weekly

2010 Issue 44

The various individual definitions of the intra-Asia market render an assessment of actual volume figures difficult. In its commonly-accepted definition, `intra-Asia' is limited to the intra-East Asia sector and excludes Middle East and Indian subcontinent trades which are considered long-haul routes, distinct from the short-sea market. Some carriers however do treat these routes as part of their intra-Asia trade, thus making direct comparisons between different carriers difficult. Feeder volumes need to be recorded separately in order to avoid the double counting of transhipment containers. Domestic and coastal trades need to be included, as the relative importance of volumes handled in these sectors has grown significantly in recent years.

IADA statistics also exclude coastal volumes, of which the China coastal volumes represent the largest segment. Indonesia, Malaysia, Vietnam and Philippines domestic and inter-island trades are also growing in significance. The largest ships currently active in the intraAsia trades are in fact employed in the Chinese coastal trade, where vessels of between 4,000 and 5,100 teu are trading for COSCO and CSCL, serveing the domestic market. The two Chinese carriers alone are expected to record 4.8 Mteu in domestic volumes in 2010, which would mark an annual growth of about 20% compared to 2009. Another cargo segment not included in IADA statistics consists of the significant feeder market volumes. Intra-Asia feeder volumes are estimated to be as high as 23 Mteu per annum. The main feeder operators are those covering the Southeast Asia region, the world's largest feeder market. The three biggest independent feeder operators, RCL, Samudera and ACL, which carry around 10% of the total feeder volume, are facing increased competition from most of the large main line operators (MLOs) which also deploy their own dedicated feeder capacity. The largest MLO-associated feeder operator is MCC Transport, the intra-Asia arm of the APM-Maersk group. Meanwhile however, most major carriers have developed their own dedicated intra-Asia feeder capacity - including CMA CGM and its intra-Asia arm CNC, MSC, Evergreen, APL, CSCL, COSCO, OOCL and Hanjin. Of the Top 10 carriers, only Hapag-Lloyd and CSAV have not yet developed any significant intra-Asia feeder capabilities of their own. Additionally, a significant share of the intra-Asia capacity is handled through MLO slots on trunk routes, which fluctuate depending on slot availability and season. The share of inter-port trunk route slots decreased over the last few years, as more dedicated capacity has been deployed, spurred by the rapid growth of intra-Asia volumes. The fragmented nature of the intra-Asia market renders an accurate assessment the actual market size difficult. Even amongst the established intra-Asia carriers, the understanding of the market remains very sketchy. In its recent IPO prospectus for example, SITC erroneously asserted that, based upon its own estimation of the intra-Asia market size, it was the fourth largest intra-Asia operator with a market share of 5%. This was derived from an estimate which put the 2009 market total at 23 Mteu. SITC also suggested that PIL and RCL were amongst the three largest intra-Asia operators, which is incorrect, as it fails to take into account feeder volumes (which represent 47% of RCL's total liftings and which also make up a significant share of PIL's volumes, through its feeder arm, ACL - Advance Container Lines) as well as out-of-scope cargo in the case of PIL, where a significant share of the 2.6 Mteu credited as PIL's intra-Asia liftings are actually related to the Africa and South America markets.

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Top 20 Intra-Asia carriers Based on dedicated capacity deployed (includes coastal and feeder capacity, excludes slots on trunk routes)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Carrier Wan Hai/Interasia CSCL/Puhai COSCO Maersk/MCC Evergreen OOCL TS Lines APL KMTC RCL SITC CMA CGM/CNC Yang Ming Sinokor MOL STX Pan Ocean PIL/ACL K Line Grand China Logistics Samudera TEU 103,700 95,600 95,100 81,800 71,700 52,700 48,800 41,400 40,400 38,700 38,600 36,000 31,900 26,700 26,300 25,500 23,900 22,600 22,300 22,100 % 7.5% 6.9% 6.8% 5.9% 5.2% 3.8% 3.5% 3.0% 2.9% 2.8% 2.8% 2.6% 2.3% 1.9% 1.9% 1.8% 1.7% 1.6% 1.6% 1.6%

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ALPHALINER Weekly SERVICE UPDATES

2010 Issue 44

CKYH plans only 1 FE-N Europe sailing omission for the winter

The CKYH winter deployment programme, which so far only involves a single void sailing on its FE-N Europe services over the November to January period, will have a negligible (0.2%) impact on total capacity. The withdrawal of Maersk's AE9 and the alternate sailing withdrawals on the Grand Alliance's Loop D, both announced earlier, will have a much larger impact, taking out 4.6% of the total capacity on the FE-Europe route (excluding the capacities on FE -Med loops). Other carriers have yet to announce their winter capacity programme.

The CKYH carriers have announced the implementation of a limited capacity adjustment programme for the winter season and the post Chinese New Year period on the Far East-North Europe route through blank sailings on several loops. This concerns the four CKYH carriers as well as co-loader UASC. The following FE-North Europe loops are involved : NE 1 : (one void sailing after the Chinese New Year - TBD) NE 2 : (one void sailing after the Chinese New Year - TBD) NE 3 : (one void sailing after the Chinese New Year - TBD) NE 4 : (one void sailing after the Chinese New Year - TBD) NE 5 : (one void sailing ex Kwangyang on 1 Jan 2011) The CKYH carriers also consider skipping departures on the Far EastMed route and may even withdraw on their three Far EastMediterranean loops, if demand slackens. The CKYH winter programme is negligible compared to last year, when the alliance withdrew one service to North Europe and one service to the Med from October 2009 until March 2010. The announced single omission of the NE-5 in January (HANJIN BREMERHAVEN - 6,655 teu removed) will only represent 1.2% of the group's total capacity to North Europe in the November to January period. Sailing omissions after the Chinese New Year period are normal holiday season adjustments and do not constitute a winter deployment plan.

CMA CGM/Maersk : FAL 5/AE-8 Service Details

FAL 5/AE-8 Vessels Deployed: 10 x 11,400 - 14,000 teu Port Rotation Le Havre, Rotterdam, Hamburg, Rotterdam, Zeebrugge, Port Kelang, Singapore, Ningbo, Shanghai, Yantian, Tanjung Pelepas, Port Kelang, Le Havre (Rotterdam import call added from Nov)

FAL 5 / AE-8 to make double calls at Rotterdam

CMA CGM and Maersk Line are to add a second Rotterdam call on their joint Far East Europe FAL 5 / AE-8 loop, run with 10 ships of 11,000-13,800 teu. The added call will be an import call (first call planned on 6 November). The European northern range port rotation thus stands as follows : Le Havre, Rotterdam, Hamburg, Rotterdam, Zeebrugge. The service will also be accelerated in the westbound direction, with transit times between Port Kelang and Le Havre to be reduced from 19 to 17 days.

Grand Alliance changes German call on Loop C

Grand Alliance (Hapag-Lloyd + OOCL + NYK) is to shift its German call from Hamburg (HHLA Terminal) to Bremerhaven (Eurogate Terminal) on its FE-Europe Loop C service, effective from February 2011. The Alliance will maintain its Hamburg calls on its three remaining FE -North Europe services - Loop A, B and D.

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ALPHALINER Weekly

2010 Issue 44

MSC adds Valencia-Montreal feeder shuttle

MSC : Valencia - Montreal Shuttle Service Details

South China Express Vessels Deployed: 3 x 3,000-4,000 teu Port Rotation Valencia, Montreal, Valencia

MSC has introduced a new Valencia-Montreal shuttle service, adding to its 'Med Canada Express' which connects Valencia, Naples, Livorno, Genoa, Valencia and Casablanca to Montreal. MSC is will therefore offer two weekly sailings between Valencia and Montreal. The new loop is ensured with three ships of 3,000-4,000 teu. These Valencia-Montreal connections allow MSC to connect the eastern Canada sector and North US to the whole Mediterranean basin, to Asia and to Africa. Valencia is MSC's western Med hub and lies at the confluence of numerous MSC services.

MSC alters Med-ECSA services

Med-Las Palmas-ECSA service Loop 1 Service Details

Med-Las Palmas-ECSA service - Loop 1 Vessels Deployed: 8 x 5,000-6,000 teu Port Rotation Valencia, Gioia Tauro, Genoa, Livorno, Fos, Barcelona, Valencia, Las Palmas, Santos, Buenos Aires, Rio Grande, Navegantes, Santos, Las Palmas, Valencia (Calls at Suape, Sao Francisco do Sul, Itaguai and Pecem removed in Nov)

MSC is to alter its Med-ECSA services (Med-Las Palmas-ECSA service - Loop 1 and Loop 2). The two slings act both as direct Med-ECSA connections as well as relay services for Asian and African cargoes. Cross transhipments between both services are also organized at Las Palmas in order to offer a wider range of port connections, especially in Brazil, thus reducing the need for local Brazil inter-port shuffling. Both loops are run on a weekly basis with a total of 13 ships of 4,800 to 6,000 teu, for a global weekly capacity reaching 10,800 teu acting both as Med-ECSA and as relays. Maersk Line has a slot allocation on the Loop 1, that it brands 'Apollo'. Suape, Sao Francisco do Sul, Itaguai and Pecem are to be removed. The revised Loop 1 will call at Valencia, Gioia Tauro, Genoa, Livorno, Fos, Barcelona, Valencia, Las Palmas, Santos, Buenos Aires, Rio Grande, Navegantes, Santos, Las Palmas, Valencia. The new pattern of the Loop 2 has yet to be advertised.

MSC introduces 8,000 teu ships to S Africa /Mauritius

MSC : Cheetah Service Details

Andes Vessels Deployed: 7 x 4,500-8,000 teu Port Rotation Xiamen, Kaohsiung, Hong Kong, Chiwan, Singapore, Port Louis, Durban, Port Louis, Reunion, Singapore, Hong Kong, Xiamen

South Africa and Mauritius are to handle their first-ever 8,000 teu ships, MSC MAEVA and MSC LUCY, who have both joined MSC's Far East-South Africa service (Cheetah) in the last two weeks. The ships will call at Port Louis and Durban, breaking the previous record also established by MSC with 6,700 teu ships. These 8,000 teu ships have been displaced from MSC's East-West loops through cascading triggered by the deliveries of MSC's 14,000 teu-class units, of which 16 have already been delivered. It is not yet known if these 8,000 teu assignments are only temporary or whether they are part of a long term plan. MSC used to deploy ships of 4,000-6,000 teu on 'Cheetah'.

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ALPHALINER Weekly

2010 Issue 44

Maersk revises West Africa services - Adds an Angola loop

Maersk : WAF 10 Service Details

West Africa Loop 10 Vessels Deployed: 3 x 1,700 Port Rotation Tangier, Algeciras, Luanda, Lobito, Malaga, Tangier (Fortnightly frequency - New from Nov 2010)

Maersk Line and its sister company Safmarine have revised three of their Algeciras/Tangier-West Africa relay services (WAF 1, WAF 2 and WAF 3) and added a tenth feeder service to West Africa centered on the Algeciras and Tangier hubs. The additional loop (WAF 10) is dedicated to the Angola market and serves Tangier, Algeciras, Luanda, Lobito, Malaga, Tangier on a fortnightly basis, using three ships of 1,700 teu. It complements the WAF 5, which offers a direct Portugal-Angola connection on top of a Gibraltar hubs feeder connection - serving the Portugal and Angola markets. The two countries have strong historic links. Maersk Line and Safmarine had already revised their WAF relay services in August, when port rotations were swapped amongst its nine WAF services.

Maersk Line to launch a direct Morocco-Russia service

Maersk : Marus Express Service Details

Korea-Ningbo-Shanghai service Vessels Deployed: 3 x 900-1,300 teu Port Rotation St Petersburg, Casablanca, Agadir, St Petersburg

Maersk Line is to launch a direct Morocco-Russia service coinciding with the begin of the citrus crop season. The new service, branded 'Marus Express' (Maroc-Russia Express) will connect Casablanca and Agadir to St Petersburg (Agadir is the main gateway for Morocco citrus exports). The new service will turn in three weeks with three ships of 868 teu, the RUTH, MISTRAL and HELMUT (although the 1,368 teu SUDEROOG will be used temporarily at launch). This is the first time that a direct container service connects Morocco to Russia, according to Alphaliner records (presently, the Morocco-Russia trade is only served by transhipment). The first sailing is planned from Agadir on 6 November. The 'Marus Express' will add to Maersk's long-established MoroccoNorth Europe KNSM service, ensured with three ships of 860 teu. This service connects Casablanca and Agadir to Rotterdam, Bremerhaven and Helsingborg (Rotterdam, which was dropped in June, is to be reinstated in November). The KNSM brand is inherited from P&O Nedlloyd, that APM-Maersk acquired in August 2005. The name KNSM itself dates back to the Nedlloyd era. It stands for 'Koninklijke Nederlandsche Scheepvaart Maatschapij' (Royal Netherlands Steamship Co), a Dutch company founded in 1856 and integrated within Nedlloyd Linjen in 1981. Among its coverage featured the Morocco-Europe trade.

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ALPHALINER Weekly

2010 Issue 44

PIL : East Asia - South and West Africa (SWS) Service Details

SWS Vessels Deployed: 11 x 1,500-2,200 teu Port Rotation Xingang, Inchon, Kwangyang, Shanghai, Ningbo, Singapore, Cape Town, Tema, Cotonou, Lagos-Apapa, Douala, Durban, Pasir Gudang, Singapore, Xingang (Xingang, Inchon, Kwangyang, Shanghai, Ningbo calls added end October)

PIL expands Asia-Africa services

PIL continues to develop its Asia-Africa services and has taken several steps in this respect, including :

The extension of its Far East-South and West Africa SWS service east of Singapore to cover NE Asia : Xingang, Inchon, Kwangyang, Shanghai and Ningbo. Service remains weekly with 11 ships now deployed. Another FE-Africa service launched in April (SW 2), already covers the south China and Taiwan sector. Creation of an additional loop covering the Far East-MauritiusEast Africa trade (focusing on Port Louis, Mombasa and Nacala) (EA 2) adding to the IOM loop and to the Asia-East Africa service (EAS). Consequently, Port Louis and Nacala are removed from the IOM, a service which was launched in February.

PIL : Asia-Mauritius-East Africa (EA2) Service Details

EA 2 Vessels Deployed: 7 x 1,500-2,100 teu Port Rotation Hong Kong, Huangpu, Nansha, Shekou, Singapore, Port Louis, Mombasa, Nacala, Singapore, Hong Kong (New from October)

CSAV to re-enter West Africa with Durban relay

CSAV is to re-enter the West Africa market with the launch of a weekly feeder service branded 'West Africa Explorer' connecting Durban to Abidjan, Tema, Cotonou and Lagos. The new service will allow CSAV to connect West Africa with the Far East, India, Middle East and ECSA markets through connections at Durban with CSAV's Asia-South Africa service (New Discovery) and ECSA-South Africa-Middle East service (Marco Polo). The 'West Africa Explorer' will be ensured with four ships of 1,800 teu. The first sailing is planned from Durban on 12 December with the 1,841 teu SAN ADRIANO. CSAV had previously served West Africa between September 2002 and December 2006, through a Europe-West Africa-ECSA link, not involving Asian connections. This connection was offered together with CSAV's Uruguayan affiliate Montemar, with temporary partnerships with MOL and Hapag-Lloyd.

CSAV : West Africa Explorer Service Details

West Africa Explorer Vessels Deployed: 4 x 1,800 teu Port Rotation Durban, Abidjan, Tema, Cotonou, Lagos, Durban

Interasia adds two loops through slots on WHL/Yang Ming

Interasia Lines has added a Japan-Taiwan-Vietnam service through slots on Wan Hai's JSV service and on Yang Ming's the soon-to-belaunched Japan-China-Malaysia service (JCM). Interasia is an affiliate of Wan Hai. Although its commercial operations are run autonomously, its operations and equipment management are coordinated with those of Wan Hai.

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ALPHALINER Weekly

2010 Issue 44

HDS Lines : AMEL Service Details

AMEL Vessels Deployed: 7 x 2,700-5,000 teu (irregular frequency on 9 week rotation) Port Rotation Damietta, Marsaxlokk, Gemlik, Istanbul, Jeddah, Bandar Abbas, Singapore, Xiamen, Shanghai, Ningbo, Chiwan, Laem Chabang, Singapore, Port Kelang, Bandar Abbas, Jeddah, Damietta

HDS Lines adds Iran calls on its FE-Med service

HDS Lines has added Bandar Abbas calls in both directions and a new westbound call at Port Kelang to its Far East-Med service (AMEL). The AMEL now calls at Damietta, Marsaxlokk, Gemlik, Istanbul, Jeddah, Bandar Abbas, Singapore, Xiamen, Shanghai, Ningbo, Chiwan, Laem Chabang, Singapore, Port Kelang, Bandar Abbas, Jeddah, Damietta. The rotation is simultaneously stretched from eight weeks to approximately nine weeks as a result of the diversion to Iran. The service is currently run with an incomplete set of seven ships (up from six ships), following the arrest on September of 2 of the 5,125 teu ships chartered from IRISL that were previously deployed on this service.

Arkas : Turkey cabotage Service Details

Turkey service Vessels Deployed: 2 x 1,100 teu Port Rotation Istanbul-Marport, Gemlik, Izmir, Famagusta, Mersin, Izmir, Gemlik, Novorossisk, Istanbul-Marport

Arkas doubles capacity of Turkey cabotage service

Arkas Group (Turkey) has doubled the capacity of its weekly Turkey cabotage service also including Famagusta, the main city in the Northern Cyprus territory claimed by Turkey. The Arkas-owned 1,139 teu NATALIA A. and MARTINA A. have replaced the 569 teu TEOMAN A. and JAK A. This service was launched in June 2010 and is the first full container service covering Famagusta. It connects Istanbul-Marport, Gemlik, Izmir, Famagusta, Mersin, Izmir, Gemlik, Novorossisk, IstanbulMarport.

Secil Maritima introduces containership on Angola service

Angolan carrier Secil Maritima is to deploy a cellular ship with breakbulk facilities to its Portugal-Angola service, usually ensured with cargo vessels. Secil connects various European ports on inducement basis and Portugal and Luanda, Lobito, Cabinda and Malongo. The Cape Verde Islands (Porto Praia) are also served on inducement. Secil has chartered the 1,118 teu HUDSON RIVER (CV 1100), which will join the service this week in Portugal.

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ALPHALINER Weekly CORPORATE UPDATES

2010 Issue 44

COSCO Holdings 3Q profits surge to $312M

China COSCO Financial Highlights 3Q 2010

RMB M Revenue Net Profit 3Q 2010 % rise 21,550 2,113 YTD % rise 34.2% 59,743 52.1% Nm 5,639 Nm

China COSCO Holdings, the parent company of COSCO Container Lines, has reported a net profit of RMB 2.11Bn ($312M) for the third quarter compared to a loss of RMB 0.71Bn ($104M) in the same period last year. Total revenue increased by 34% to RMB21.55Bn, led by the significantly-improved performance of its container shipping operations. For the first nine months of the year, its consolidated revenue rose by 52% to RMB 59.74Bn while net profits rose to RMB 5.64Bn. In the same period last year, the company posted a net loss of RMB 5.36Bn. COSCO's container shipping business recorded liftings of 1,656,404 teu in the third quarter, an increase of 16.1% over the same period last year, and total revenue of the container shipping business increased by 84.7% to RMB 11.55Bn ($1.70Bn). For the first three quarters of 2010, container shipping volumes reached 4,606,524 teu, representing an increase of 21.8% over the same period last year. Total revenue of the container shipping business increased by 89.6% to RMB 28,99Bn ($4.25Bn).

COSCO Container Lines - Liftings and Average Revenue by Trade

Average Freight $/TEU Thousands

1,800 1,600 1,400 1,200 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 PRC Trans-Atlantic+Others Intra-Asia Asia-Europe Trans-Pacific Trans-Pacific Asia-Europe Intra-Asia Trans-Atlantic PRC

China COSCO Share Price 2009-2010 HK$

14

52 week High/Low : HK$11.56/7.39

12 10 8 6 4 2 0

Apr-09

Apr-10

Oct-09

COSCON Liftings by Trade : 3Q 2010 vs 2009

3Q2010 Transpacific Asia-Europe Intra-Asia Others PRC Domestic Total 426,895 367,119 409,330 60,032 393,028 1,656,404 3Q2009 320,501 366,807 319,524 47,204 372,610 1,426,646 % 33% 0% 28% 27% 5% 16%

Oct-10

Jan-09

Jul-09

Jan-10

Jul-10

Liftings in TEU

1,000 800 600 400 200 0

COSCON Average Rev/Teu by trade : 3Q 2010 vs 2009

3Q2010 Transpacific Asia-Europe Intra-Asia Others PRC Domestic Total 1,604 1,456 695 1,051 272 1,010 3Q2009 886 772 633 607 267 629 % 81% 89% 10% 73% 2% 61%

Revenue increased across all of COSCO's tradelanes, with the largest increases recorded in the Transpacific trade where volumes rose by 33% while average freight rates increased by 81%. Average freight rates for COSCO's transpacific cargo have reached $1,604/teu and surpassed their previous peak in 2007. Average rates on its AsiaEurope sector have also firmed in the third quarter to $1,456/teu. China COSCO did not reveal the operating profit breakdown between its different business units. Apart of its container shipping business which accounts for 49% of its turnover, China COSCO also operates 443 bulk carriers, and operates container terminals in China, Greece, Egypt, Belgium and Singapore.

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1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

ALPHALINER Weekly

2010 Issue 44

CSCL 3Q net profits soar to $318M

CSCL Share Price 2009-2010 HK$

4 3.5 3 2.5 2 1.5 1 0.5 0

Apr-09 Apr-10 Oct-09 Oct-10 Jan-09 Jul-09 Jan-10 Jul-10

52 week High/Low : HK$3.67/2.30

China Shipping Container Lines (CSCL) has reported a net profit of RMB 2.15Bn ($318M) for the third quarter, compared to the net loss of RMB 1.94Bn ($283M) in the same period last year. For the first nine months of the year, the company's net profits have soared to RMB 3.33Bn ($488M) compared to a net loss of RMB 5.35Bn ($782M) for the first nine months of 2009. CSCL does not provide revenue and tradelane breakdown details in its quarterly updates and will only release full details in its year-end results announcement.

CSCL Net Profit by Quarter 2008-2010

Millions Net Profit in RMB

2,500 2,000 1,500 1,000 500 0

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

-500 -1,000 -1,500 -2,000 -2,500

Evergreen reallocates orders 8,000 teu orders

Evergreen Group Samsung 8,000 teu series Breakdown by subsidiary:

Subsidiary Evergreen Marine Corp. Evergreen International SA Evergreen Marine (UK) Greencompass Marine SA Total Units 9 7 3 1 20

Evergreen Maritime Corp. (EMC), the listed arm of the Evergreen Group, has reallocated four of the six 8,000 teu ships it ordered at Samsung in July, part of a 10-ship contract involving Evergreen International SA (EMC's major shareholder), which ordered four of the ten ships. EMC will retain two ships while the four other units are reallocated to two Evergreen subsidiaries : three contracts are transferred to Evergreen Marine (UK) (formerly known as Hatsu Marine until 30 April 2007) and one contract to Greenmarine Compass SA, a Panamabased affiliate. The second batch of 10 similar ships announced in September (7 for EMC and 3 for Evergreen International SA) is not affected by the move. Although officially advertised with a capacity of 8,000 teu, these 20 ships are believed to stow closer to 8,800-9,000 teu. Each of these ships was contracted for $103M and will be delivered over 2012-2014.

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3Q10

ALPHALINER Weekly

2010 Issue 44

CSAV posts record 3Q profits of $149M

CSAV Financial Highlights 3Q 2010

US$ M Revenue Net Profit 3Q 2010 % rise 1,614 149 133% n.m. YTD 4,092 180 % rise 86% n.m.

CSAV has reported a net profit of $149M for the third quarter to September, its most profitable quarter in history. In the same quarter last year, the Chilean carrier had posted a net loss of $147M. Net profits for the first nine months of this year reached $$180M compared to a net loss of $550M in the same period last year. For the whole of last year, the company posted a full year net loss of $656M.

CSAV Net Profits by Quarter 2007-2010

CSAV Share Price 2009-2010 Chilean Peso

700 600 500 400 300 200 100 0

Oct-09 Apr-09 Apr-10 Oct-10 Jan-09 Jul-09 Jan-10 Jul-10

52 week High/Low : 684/347

Net Profit in US$ Millions

800

200 150 100 50 0

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

-50 -100 -150 -200

"For the coming months we do not expect a demand that may fully absorb the current capacity and the new vessels being delivered by the shipyards. The effect on freight rates will depend on the reaction of carriers to these market conditions, which is uncertain." CSAV Market Update October 2010 CSAV : Rise in Capacity Operated 2009-2010

-250 -300

The company said that its revenue rose by 133% or $921M for the quarter compared to last year. This was due mainly to the significant increase in volumes which rose by 74% while average freight rates are 24% higher. The record profits come amidst an aggressive expansion programme undertaken by the Chilean carrier, which has seen the line's market share double over the last 18 months. CSAV is currently the seventh largest carrier and it could soon enter the Top 5 if it continues to expand at the current pace. However, the company warned that liftings in the fourth quarter are lower than those observed for the third quarter and that "it is possible to expect that the (quarterly) volume will not grow at the same pace of the previous one, or may even show some decrease compared to recent months. This will likely result in lower prices and reduced margins for the fourth quarter when compared to the previous quarter." CSAV's market expansion however continues unabated - it plans to re -enter the West Africa trades in December as it strives to continue to further penetrate markets where it has limited presence.

Thousands

700 600 500 400 300 200 100 0

TEU Rank 8 10 13 16 16 16 16 7 7

TEU Operated

Page 10

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 Nov 2010

© Copyright Alphaliner 1999-2010

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3Q10

ALPHALINER Weekly

2010 Issue 44

NYK posts FY2Q net profit of $255M

NYK Share Price 2009-2010 JP¥

700

52 week High/Low : JPY 419/259

NYK has reported a net income of JPY 21.3Bn ($255M) in its fiscal second quarter ended September, an improvement from the net loss of JPY 10.4Bn in the same quarter last year. NYK's container shipping business enjoyed a strong recovery with revenue increasing by 37% to JPY 127.5Bn ($1.52 Bn) in the second quarter, while operating income increased to JPY 17.1Bn ($188M) compared to a loss of JPY 17.6Bn in the same quarter last year. It said that cargo volumes on all routes have increased year-on-year, particularly on its North American routes.

NYK Main Linehaul Liftings by Month 2009-2010

600 500 400 300 200 100 0

Jul-09 Oct-09 Jul-10 Apr-09 Apr-10 Oct-10 Jan-09 Jan-10

70 60

N America (EB) Europe (WB)

Liftings TEU '000

50 40 30 20 10 0 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10

Recurring (Ordinary) Profit/Loss JP¥ Billions

TSK Line adds to the shipping brands now consigned to history, after 61 year of existence. It was established in Tokyo in July 1949, taking over the assets of the Nanyo Kaiun Kisen Kaisha, and was listed on the Tokyo Stock Exchange the following September. It set up liner and semiliner services in East Asia, linking Japan to Indonesia (1950) and to China (1954). In April 1964, a reorganisation of Japan's shipping industry led TSK into the hands of NYK, which took 39% of TSK's shares and made it its intra-Asia liner arm. In October 1988, TSK took over the Shofuku Line Co Ltd., integrating its tramp services and full container services. In January 2001, operations of TSK's conventional services wer e transferred to Hinode Kisen Co Ltd (a company which had just become a wholly-owned subsidiary of NYK), so that TSK remained involved only in container shipping activities. NYK took over the whole TSK stock in August 2002. TSK was then de-listed. NYK then assigned all its remaining intra-Asia services to TSK. Most of the TSK ships are recognizable by their ACX prefix (meaning 'Asia Container Express'), which will be a reminder of the TSK era, at least until this prefix is replaced by NYK.

Ordinary Income Comparison by Carrier

20 15 10 5 0 -5 -10 -15 -20 -25 -30 K Line MOL NYK 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Meanwhile, as announced earlier, NYK's intra-Asia operating arm TSK Line (Tokyo Senpaku Kaisha Ltd) ceased operations on 1 November, following the transfer of its intra-Asia liner business to NYK Line (Japan) Ltd. All NYK liner activities, including the deep sea services so far operated by NYK Line (Japan) Ltd, come henceforth under the umbrella of 'NYK Container Line Ltd'.

Page 11

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ALPHALINER Weekly

2010 Issue 44

MOL FY2Q net profits soar to $327M

MOL Share Price 2009-2010 JP¥

900 800 700 600 500 400 300 200 100 0

52 week High/Low : JPY 716/455

MOL's fiscal second-quarter results showed an eight-fold jump in net profits to JPY 27.4Bn ($327M), from only JPY 3.1Bn in the same period last year. Total consolidated revenue rose by 24% to JPY 405.9Bn ($4.84Bn) in the quarter. MOL's container shipping activities recorded a 45% increase in revenue to JPY 162.4Bn ($1.94Bn) as the strong recovery in freight rates and volumes helped the Japanese carrier turn in a positive operating (recurring) profit of JPY 17.3Bn ($206M) compared to a loss of JPY 17.5Bn ($185M) in the same quarter last year. MOL's container shipping results were the best amongst the three Japanese carriers. The company said that it has "continued effecting various measures such as cutting costs through fuel savings by slow steaming as well as reducing other cargo expenses, improving efficiency through the optimization of our organization and staff both in Japan and overseas...". In line with the rest of its competitors, MOL increased its transpacific liftings to the US by 40% during the period. The carrier also reported a strong 37% increase in liftings on its Asia-Europe routes.

Oct-09

Apr-09

Apr-10

Oct-10

Jan-09

Jul-09

Jan-10

Jul-10

K Line FY2Q net profit rises to $126M

KLine Share Price 2009-2010 JP¥

600

52 week High/Low : JPY 408/238

500 400 300 200 100 0 Apr-09 Apr-10 Jan-09 Jul-09 Oct-09 Jan-10 Jul-10 Oct-10

K Line has reported a net profit of JPY 10.5Bn ($126M) on the back of strong results from its container shipping operations. Consolidated revenue rose by 28% to JPY 266.6Bn ($3.18Bn) with the container shipping segment contributing 48% of the company's total revenue. Container shipping revenue increased by 39% to JPY 128.5Bn ($1.53Bn) and recurring operating income jumped to JPY 16.7Bn ($199M) due to freight rate increases and cost reduction measures undertaken since last year. The improved performance came despite an overall reduction in liftings as K Line has undertaken a structural reform initiative to reduce its exposure to the container shipping sector and has cut its operated tonnage by 10% compared to the same period last year. As a result, its liftings on the Asia-US transpacific sector fell by 2% on the eastbound leg and by 24% on the backhaul westbound leg. Overall volumes on its North American routes declined by 10%. Its AsiaEurope routes also increased by only 2% during the period, due mainly to a 9% reduction on the westbound leg. Combined volumes on its North-South and intra-Asia routes also fell by 2% overall.

Page 12

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ALPHALINER Weekly DELIVERY UPDATES

2010 Issue 44

The ALBERTA (6,589 teu) is delivered - Joins CSAV

German owner Peter Döhle has received last week the ALBERTA, fifth of six 6,589 teu ships ordered jointly by Peter Döhle and CSAV at CSBC, Taiwan, in April 2006 (three are owned by CSAV and three are owned by Peter Döhle). The ALBERTA sailed from the yard as MATAQUITO (CSAV naming) and will join this week CSAV's Far East-West Med 'Mare Nostrum Service' (MNS). The ALBERTA follows the MAIPO, delivered in August.

October 2010 Deliveries (Cellular vessels only)

Name MSC LA SPEZIA MSC GAIA COSCO THAILAND CMA CGM LA SCALA SANTA CLARA ALBERTA (MATAQUITO) HYUNDAI VANCOUVER BROTONNE BRIDGE Teu Operator 14,000 MSC 13,798 MSC 8,495 8,465 7,100 6,589 6,350 4,520 COSCO CMA CGM Hamburg Süd CSAV HMM K Line Hapag-Lloyd

The HAMMONIA VENETIA (4,178 teu) joins Hapag-Lloyd

German owner Hammonia Reederei has received last week the HAMMONIA VENETIA, fifth of six 4,178 teu ships ordered in April-May 2006 at CSBC (Taiwan) by Peter Döhle, Hammonia Reederei and JP Oltmann. The HAMMONIA VENETIA is chartered by Hapag-Lloyd, which renamed her VALPARAISO EXPRESS. She is to proceed to Panama for her maiden trip. She follows the JPO TUCANA delivered in September.

HAMMONIA VENETIA (VALPARAISO EX4,178 PRESS) CMA CGM AFRICA FOUR HANJIN VERSAILLES MAERSK VISBY SFL AVON PAUL RUSS TILLY RUSS LEGUAN STAR EXPRESS PHOENIX J. AS FRISIA MIRIAM BORCHARD 3,650 3,398 1,802 1,732 1,338 1,338 1,085 1,043 1,036 1,036 803

CMA CGM Hanjin Shg Maersk MCC APL MCC Transport KMTC Namsung Containerships Containerships Borchard

The MAERSK VISBY (1,802 teu) is delivered

A.P. Möller Singapore has received the MAERSK VISBY, second of four units of 1,802 teu ordered at the Dalian shipyard in August 2006. She is expected to join the Maersk-Safmarine Safari 3 loop. Twelve ships have already been delivered in this series, of which ten joined PIL, which still is to receive one further unit. The MAERSK VISBY is the 13th ship produced in this series and follows the KOTA NEBULA, delivered in July. The first Maersk unit in this series, the MAERSK VILNIUS was delivered in March.

The TILLY RUSS (1,338 teu) joins MCC Transport

German owner Ernst Russ has received last week the 1,338 teu TILLY RUSS, second of two 'MRC 1100-II' units ordered in July 2007 by this owner at the Jiangsu Yangzijiang shipyard. She is the 18th unit built in the 'MRC 1100-II' design. She has been chartered by MCC Transport, the intra-Asia arm of APM-Maersk, which has renamed her MCC DAVAO for assignment to its intra Asia IA-9 loop, that she is to join on 10 November. The TILLY RUSS follows the PAUL RUSS in the MRC 1100-II series, delivered a fortnight ago.

Page 13

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ALPHALINER Weekly

2010 Issue 44

The HYUNDAI MASAN (multipurpose - 1,888 teu) is delivered

Cellular Containership Deliveries by month 2008 to 2010 (Oct)

Oct Sep Aug Jul Jun May Apr Mar Feb 2010 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 2009 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 2008 Jan 20 17 21 34 29 33 26 27 13 30 18 23 20 21 20 16 25 22 27 27 23 28 28 31 41 36 26 47 41 34 42 44 38 37

Hyundai M.M. (HMM) has taken in charge the HYUNDAI MASAN, first of four multpurpose cargo vessels of 30,000 tdw with a teu intake of up to 1,888 teu, which it long term charteres from German owner Rickmers Reederei. These ships are built in China at the Jinling shipyard and they belong to the 'Superflex MPC' series, of which 24 units have been built during the past ten years (with different handling gear). The HYUNDAI MASAN is fitted with two heavy-lift cranes of 320 tons combinable to lift up to 640 tons, as well as a 100 ton crane and a 50 ton one. She is expected to join the HMM breabulk services, connecting Korea to the rest of Asia, including the Middle East. Despite their high container intake, these ships are not aimed at carrying containers but are destined to the transport of steel, machinery, project cargoes and other breakbulk cargoes. These ships are excluded from the Alphaliner container fleet statistics as are many other container capable breakbulk ships which are not directly involved with container trades, in order to not distort actual liner figures). The HYUNDAI MASAN will be followed by the HYUNDAI ULSAN, HYUNDAI DUBAI and HYUNDAI ANTWERP. These four ships are part of a six multipurpose ship chartering programme (periods of 5 to 8 years), which also includes two more vessels of 10,000 tdw / 604 teu to be delivered in the coming months by the Kouan shipyard to German owners (HYUNDAI PHOENIX and HYUNDAI PEGASUS). These two ships are fitted with two heavy-lift cranes of 450 tons combinable to lift up to 900 tons. HMM already operates two chartered 'Superflex' of 30,000 tdw, the HYUNDAI JUMBO and HYUNDAI RHINO, chartered from German owner NSC Schiffahrt. These two 'Superflex' are however fitted with a lighter handing gear than the HYUNDAI MASAN series, as the two main cranes are rated at 200 tons, combinable to 400 tons, instead of two 320 tons cranes on the new series.

Superflex Heavy MPC Series

TEU delivered

Page 14

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