alpha liner newsletter no 442010 full

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© Copyright Alphaliner 1999-2010

Chart of the week

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 do-

mestic and coastal trades which previously have not been included in most es-

timates of market volumes. An estimated 85% of the trade’s capacity is cur-

rently deployed on dedicated intra-Asia services, whereas the remainder is of-

fered 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 statis-

tics only include liftings data submitted by IADA’s 30 members and thus ex-

clude 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.

Alphaliner Weekly Newsletter is distributed every Monday. The newsletter is available upon subscription. Information is

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ALPHALINER Weekly Newsletter 26.10.2010 to 01.11.2010

Volume 2010 Issue 44

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

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

INSIDE THIS ISSUE:INSIDE THIS ISSUE:INSIDE THIS ISSUE:INSIDE THIS ISSUE:

IntraIntraIntraIntra----Asia MarketAsia MarketAsia MarketAsia Market 1111

Service UpdatesService UpdatesService UpdatesService Updates CKYH plans only 1 FE-N Eur

sailing omission for winter FAL 5/AE-8 to make double

calls at Rotterdam Grand Alliance changes Ger-

man 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 ser-

vices 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

3333

Corporate UpdatesCorporate UpdatesCorporate UpdatesCorporate 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 im-proved FY2Q results

8888

Delivery UpdatesDelivery UpdatesDelivery UpdatesDelivery Updates October deliveries

13131313

0 5 10 15

NE Asia-SE Asia

NE Asia only

SE Asia only

S China/Twn/Phil/Viet

China coastal services

Slots on E-W trunk routes

Slots on other trunk routes

Intra-Asia Annual Slot Capacity in TEU Millions

Intra-Asia Slots Coastal Slots Feeder/Relay Slots

© Alphaliner

• The intra-Asian trade’s an-

nual slot capacity (excluding the Middle East and Indian subcontinent) is estimated at about 70 Mteu.

• Thereof, an estimated 34

Mteu caters for intra-regional cargo, whereas 23 Mteu are of capacity are provided as part of feeder trades.

• Domestic and/or coastal

trades account for an addi-tional 13 Mteu. Thereof, China’s domestic services (excluding intra estuary shuttles) account for about 8 Mteu.

Dedicated intra-Asia Capacity

Inter-port capacity on trunk routes



ALPHALINER WeeklyWeeklyWeeklyWeekly 2010 Issue 44

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 intra-

Asia 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 esti-

mated to be as high as 23 Mteu per annum. The main feeder opera-

tors 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 vol-

ume, 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, Ever-

green, 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 de-

creased 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 estab-

lished intra-Asia carriers, the understanding of the market remains

very sketchy. In its recent IPO prospectus for example, SITC errone-

ously asserted that, based upon its own estimation of the intra-Asia

market size, it was the fourth largest intra-Asia operator with a mar-

ket 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 incor-

rect, 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 Con-

tainer 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.

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

The various individual definitions of the intra-Asia market render an assessment of actual volume figures difficult. In its commonly-accepted defini-tion, ‘intra-Asia’ is limited to the intra-East Asia sector and ex-cludes 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 dif-ferent carriers difficult. Feeder volumes need to be re-corded 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 sig-nificantly in recent years.

Carrier TEU %

1 Wan Hai/Interasia 103,700 7.5%

2 CSCL/Puhai 95,600 6.9%

3 COSCO 95,100 6.8%

4 Maersk/MCC 81,800 5.9%

5 Evergreen 71,700 5.2%

6 OOCL 52,700 3.8%

7 TS Lines 48,800 3.5%

8 APL 41,400 3.0%

9 KMTC 40,400 2.9%

10 RCL 38,700 2.8%

11 SITC 38,600 2.8%

12 CMA CGM/CNC 36,000 2.6%

13 Yang Ming 31,900 2.3%

14 Sinokor 26,700 1.9%

15 MOL 26,300 1.9%

16 STX Pan Ocean 25,500 1.8%

17 PIL/ACL 23,900 1.7%

18 K Line 22,600 1.6%

19 Grand China Logistics 22,300 1.6%

20 Samudera 22,100 1.6%

© Alphaliner




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

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 5 : (one void sailing ex Kwangyang on 1 Jan 2011)

The CKYH carriers also consider skipping departures on the Far East-

Med route and may even withdraw on their three Far East-

Mediterranean 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 ser-

vice to the Med from October 2009 until March 2010. The an-

nounced single omission of the NE-5 in January (HANJIN BREMER-

HAVEN - 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 holi-

day season adjustments and do not constitute a winter deployment

plan.

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.

SERVICE UPDATES

FAL 5/AE-8

Vessels Deployed:

10 x 11,400 - 14,000 teu

Port Rotation

Le Havre, Rotterdam, Hamburg, Rotter-

dam, Zeebrugge, Port Kelang, Singapore,

Ningbo, Shanghai, Yantian, Tanjung Pe-

lepas, Port Kelang, Le Havre

(Rotterdam import call added from Nov)

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

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 pe-riod, will have a negligible (0.2%) impact on total capacity. The withdrawal of Maersk’s AE-9 and the alternate sailing with-drawals on the Grand Alliance’s Loop D, both announced earlier, will have a much larger impact, taking out 4.6% of the total ca-pacity on the FE-Europe route (excluding the capacities on FE-Med loops). Other carriers have yet to an-nounce their winter capacity programme.




MSC adds Valencia-Montreal feeder shuttle

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

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, espe-

cially in Brazil, thus reducing the need for local Brazil inter-port shuf-

fling. 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 pat-

tern of the Loop 2 has yet to be advertised.

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

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'.

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, Ita-

guai and Pecem removed in Nov)

Med-Las Palmas-ECSA service - Loop 1 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

MSC : Cheetah Service Details

South China Express

Vessels Deployed:

3 x 3,000-4,000 teu

Port Rotation

Valencia, Montreal, Valencia

MSC : Valencia - Montreal Shuttle Service Details




Maersk revises West Africa services - Adds an Angola loop

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 fort-

nightly 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 ser-

vices in August, when port rotations were swapped amongst its nine

WAF services.

Maersk Line to launch a direct Morocco-Russia service

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 cit-

rus 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 SUD-

EROOG 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 Morocco-

North Europe KNSM service, ensured with three ships of 860 teu.

This service connects Casablanca and Agadir to Rotterdam, Bremer-

haven 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.

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 : WAF 10 Service Details

Korea-Ningbo-Shanghai service

Vessels Deployed:

3 x 900-1,300 teu

Port Rotation

St Petersburg, Casablanca, Agadir, St Pe-

tersburg

Maersk : Marus Express Service Details




PIL expands Asia-Africa services

PIL continues to develop its Asia-Africa services and has taken sev-

eral steps in this respect, including :

⇒ The extension of its Far East-South and West Africa SWS ser-

vice 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-Mauritius-

East Africa trade (focusing on Port Louis, Mombasa and

Nacala) (EA 2) adding to the IOM loop and to the Asia-East Af-

rica service (EAS). Consequently, Port Louis and Nacala are

removed from the IOM, a service which was launched in Febru-

ary.

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 Dur-

ban 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 partner-

ships with MOL and Hapag-Lloyd.

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-be-

launched Japan-China-Malaysia service (JCM).

Interasia is an affiliate of Wan Hai. Although its commercial opera-

tions are run autonomously, its operations and equipment manage-

ment are coordinated with those of Wan Hai.

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

West Africa Explorer

Vessels Deployed:

4 x 1,800 teu

Port Rotation

Durban, Abidjan, Tema, Cotonou, Lagos,

Durban

CSAV : West Africa Explorer Service Details

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)




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, Istan-

bul, Jeddah, Bandar Abbas, Singapore, Xiamen, Shanghai, Ningbo,

Chiwan, Laem Chabang, Singapore, Port Kelang, Bandar Abbas, Jed-

dah, Damietta.

The rotation is simultaneously stretched from eight weeks to approxi-

mately 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 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, Istanbul-

Marport.

Secil Maritima introduces containership on Angola service

Angolan carrier Secil Maritima is to deploy a cellular ship with break-

bulk 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.

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 : AMEL Service Details

Turkey service

Vessels Deployed:

2 x 1,100 teu

Port Rotation

Istanbul-Marport, Gemlik, Izmir, Fama-

gusta, Mersin, Izmir, Gemlik, Novorossisk,

Istanbul-Marport

Arkas : Turkey cabotage Service Details




COSCO Holdings 3Q profits surge to $312M

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 pe-

riod 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 in-

creased 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

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 Asia-

Europe 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.

CORPORATE UPDATES

China COSCO Financial Highlights 3Q 2010

RMB M 3Q 2010 % rise YTD % rise

Revenue 21,550 34.2% 59,743 52.1%

Net Profit 2,113 Nm 5,639 Nm

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

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China COSCO Share Price

2009-2010 HK$

52 week High/Low : HK$11.56/7.39

COSCON Liftings by Trade : 3Q 2010 vs 2009

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

3Q2010 3Q2009 %

Transpacific 426,895 320,501 33%

Asia-Europe 367,119 366,807 0%

Intra-Asia 409,330 319,524 28%

Others 60,032 47,204 27%

PRC Domestic 393,028 372,610 5%

Total 1,656,404 1,426,646 16%

3Q2010 3Q2009 %

Transpacific 1,604 886 81%

Asia-Europe 1,456 772 89%

Intra-Asia 695 633 10%

Others 1,051 607 73%

PRC Domestic 272 267 2%

Total 1,010 629 61%




CSCL 3Q net profits soar to $318M

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

Evergreen reallocates orders 8,000 teu orders

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 Inter-

national 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 Ever-

green Marine (UK) (formerly known as Hatsu Marine until 30 April

2007) and one contract to Greenmarine Compass SA, a Panama-

based 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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CSCL Share Price 2009-2010

HK$

52 week High/Low : HK$3.67/2.30

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

Subsidiary Units

Evergreen Marine Corp. 9

Evergreen International SA 7

Evergreen Marine (UK) 3

Greencompass Marine SA 1

Total 20




CSAV posts record 3Q profits of $149M

CSAV has reported a net profit of $149M for the third quarter to Sep-

tember, 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

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 ex-

pand 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 possi-

ble to expect that the (quarterly) volume will not grow at the same

pace of the previous one, or may even show some decrease com-

pared to recent months. This will likely result in lower prices and re-

duced 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.

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CSAV Share Price 2009-2010

Chilean Peso

52 week High/Low : 684/347

CSAV Financial Highlights 3Q 2010

US$ M 3Q 2010 % rise YTD % rise

Revenue 1,614 133% 4,092 86%

Net Profit 149 n.m. 180 n.m.

“For the coming months we do not expect a demand that may fully absorb the current capacity and the new vessels being deliv-ered by the shipyards. The effect on freight rates will depend on the reaction of carriers to these market conditions, which is un-certain.”

CSAV Market Update October 2010

16 16 16 16

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CSAV : Rise in Capacity Operated 2009-2010




NYK posts FY2Q net profit of $255M

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

Ordinary Income Comparison by Carrier

Meanwhile, as announced earlier, NYK’s intra-Asia operating arm

TSK Line (Tokyo Senpaku Kaisha Ltd) ceased operations on 1 No-

vember, following the transfer of its intra-Asia liner business to NYK

Line (Japan) Ltd. All NYK liner activities, including the deep sea ser-

vices so far operated by NYK Line (Japan) Ltd, come henceforth un-

der the umbrella of 'NYK Container Line Ltd'.

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 semi-liner 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 c o n v e n t i o n a l s e r v i c e s w e r 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.

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NYK Share Price 2009-2010

JP¥

52 week High/Low : JPY 419/259

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K Line MOL NYK




MOL FY2Q net profits soar to $327M

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 pe-

riod 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 reve-

nue 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 effi-

ciency 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.

K Line FY2Q net profit rises to $126M

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 lift-

ings 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. Over-

all volumes on its North American routes declined by 10%. Its Asia-

Europe 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.

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MOL Share Price 2009-2010

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KLine Share Price 2009-2010

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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 MATA-

QUITO (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.

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 Pa-

nama for her maiden trip. She follows the JPO TUCANA delivered in

September.

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 fol-

lows 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 re-

named 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.

DELIVERY UPDATES

October 2010 Deliveries (Cellular vessels only)

Name Teu Operator

MSC GAIA 13,798 MSC

SANTA CLARA 7,100 Hamburg Süd

LEGUAN 1,085 KMTC

STAR EXPRESS 1,043 Namsung

MIRIAM BORCHARD 803 Borchard

CMA CGM LA SCALA 8,465 CMA CGM

CMA CGM AFRICA

FOUR 3,650 CMA CGM

HANJIN VERSAILLES 3,398 Hanjin Shg

SFL AVON 1,732 MCC

PAUL RUSS 1,338 APL

AS FRISIA 1,036 Containerships

PHOENIX J. 1,036 Containerships

MSC LA SPEZIA 14,000 MSC

COSCO THAILAND 8,495 COSCO

HYUNDAI VANCOU-

VER 6,350 HMM

BROTONNE BRIDGE 4,520 K Line

ALBERTA

(MATAQUITO) 6,589 CSAV

HAMMONIA VENETIA

(VALPARAISO EX-

PRESS)

4,178 Hapag-Lloyd

TILLY RUSS 1,338 MCC Transport

MAERSK VISBY 1,802 Maersk




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

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 ship-

yard 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, con-

necting 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, pro-

ject cargoes and other breakbulk cargoes. These ships are excluded

from the Alphaliner container fleet statistics as are many other con-

tainer 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, HYUN-

DAI 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

Cellular Containership Deliveries by month 2008 to 2010 (Oct)

37

38

44

42

34

41

47

26

36

41

31

28

28

23

27

2722

25

16

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21

20

23

18

30

13

27

26

33

29

34

21

17

20

2008 Jan

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Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2009 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2010 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

TEU delivered

alpha liner newsletter no 442010 full

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