map of the weekfiles.irwebpage.com/reports/shipping/egco28qa1l...cai mep-thi vai, located 90...

P a g e | 1 © Copyright Alphaliner 1999-2009

ALPHALINER Weekly Newsletter

05.05.2009 to 11.05.2009 Volume 2009 Issue 20

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

Alphaliner Weekly Newsletter is the premier liner shipping news summary, compiled and 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]

IN S I D E TH I S I S S U E 1 Chart of the Week

Spotlight on Vietnam

3 Service Updates

APL revamps PS-1, adds Vietnam call MOL also adds Vietnam call on PSX CMA CGM routes PEX 3 via Suez Maersk TP-6 to focus only on LA Maersk joins MSC on Eur-ECSA Maersk joins CMA CMA’s FAL 3 MSC to resume FE-E Med Tiger svc MSC revise N Eur-Greece-Turkey svc CSAV/Maruba upgrade Eur-ECSA svc YML to launch own Bangladesh feeder Other services news

9 Corporate Updates

Maersk in $559M first quarter loss NOL 1Q loss hits $245M Eimskip dispose Containership shares MISC suffers large liner loss – exits

Europe trade

14 Delivery Updates

May deliveries

0.00

1.00

2.00

3.00

4.00

5.00

6.00

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

TEU

Mill

ion

s

Map of the Week

Country Spotlight: Vietnam With cargo growth declining significantly around the world, the spotlight has shifted to Vietnam, where container volumes had grown by 20% annually over the past decade. This week, the New World Alliance carriers (APL, HMM and MOL) have announced the opening of two mainline services starting next month that will connect Vietnam directly to North America for the first time. Prior to this, the country had to rely on transhipment services using feeder vessels as none of Vietnam’s existing ports were able to accommodate ships larger than 2,500 teu. With the planned opening of several deepwater container terminals in Cai Mep-Thi Vai, located 90 kilometres from Ho Chi Minh City in south Vietnam, the landscape is about to change dramatically.

Vietnam container volume

growth 1998-2008

Map of Ho Chi Minh City and surrounding provinces

showing location of main container terminals.© Liner Research Services 2009

Vietnam Intl Contr Tml

(APL)

Open: 1998

Vol: 0.54 Mteu

SNP-Cat Lai

(Saigon New Port )

Open: 2002

Vol: 2.02 Mteu

Saigon Premier Contr Tml

(DPW)

Open: end 2009

SP-PSA Intl Port

(PSA)

Open: mid 2009

SNP-Cai Mep

(SNP w/HJS,MOL,WHL)

Open: mid 2009

Cai Mep Intl Tml

(APMT)

Open: ~2010

Japan ODA port

(BOT Tender)

Open: ~2012

SP-SSA Intl Tml

(SSA)

Open: ~2011

Gemalink Tml

(CMA CGM)Open: ~2012

Saigon Intl Tmls

(HPH)

Open: ~2010

Vinalines-CMHI

(China Merchants)

Open: ~2012

Terminal Name

(Primary shareholder)

Operations start date

Volume (2008 Actual)

Legend

North

Ho Chi Minh City

(Saigon)

Cai Mep-Thi Vai


ALPHALINER Weekly Newsletter 2009-Week 20axs-alphaliner.com – the worldwide reference in liner shipping

Haiphong

Danang

Quinhon

Ho Chi Minh

City

Vietnam’s cargo growth in recent years have been driven by a growing industrial sector dominated by apparel, footwear, furniture and electronics exports and the increased imports required to support both domestic consumption as well as to provide raw materials and equipment for its export industries. Container cargo in the country grew from only 855,000 teu in 1998 to over 5.4 Mteu in 2008, with about 65% of the volume concentrated in Ho Chi Minh City and its surrounding provinces. The first dedicated container terminal in the country, Vietnam International Container Terminal (VICT) was opened in 1998 by a consortium led by NOL-APL. Together with the navy owned-Saigon New Port’s Cat Lai terminal (opened in 2002), these two terminals account for the majority of the container throughput in southern Vietnam. However, these terminals are shallow draft facilities limited to 10 m depth, restricting access to containerships of 1,000-1,500 teu. The largest containership calling at Ho Chi Minh City currently is the MSC PEGGY (2,433 teu), recently introduced by MSC in its Singapore-Ho Chi Minh City service. However, with a fully laden draft of 12 m, it will not be able to take a full load of cargo. The situation will change in June when two new terminals open in Cai Mep-Thi Vai. The first terminal, SP-PSA International Port, is a joint-venture between Saigon Port, Vinalines and PSA. The second terminal is the navy-owned Saigon New Port’s Cai Mep terminal (of which a planned second phase will include participation by Hanjin Shipping, MOL and Wan Hai). Both of these terminals will have a draft of up to 14 m, allowing ships of 5,000-6,000 teu to call in Vietnam for the first time. The two terminals are the first of a series of terminals that is expected to open within the next 3 years. By 2013, the landscape in Ho Chi Minh City’s ports will be transformed with 11 dedicated container terminals expected to be in operation. Apart from PSA, almost all the major international container terminal operators are planning to start their own rival facilities in Cai Mep-Thi Vai. The other newcomers include Hutchison Port Holdings, APM Terminals, China Merchants, SSA and Terminal Link (CMA CGM subsidiary). DP World will also open a competing terminal in Hiep Phuoc later this year, although that terminal is currently unable to serve vessels of more than 10 m draft. The new terminals would add over 10 Mteu of total handling capacity. The two new linehaul services to North America (APL’s PS1 and MOL’s PSX) will make their inaugural calls in early June (see related news). Although both services are part of the New World Alliance offering, they will be calling at different terminals at Cai Mep. The fragmented terminals situation in the HCMC-Cai Mep region could result in excessive competition amongst the rival operators, especially if growth stalls. Many of the terminal operators had rushed to sign joint venture agreements with local Vietnamese partners in the last three years, when Vietnam’s volume growth was expected to remain one of the highest in the world.

Port TEU Share

HCMC 3,530,000 65%

Haiphong 1,600,000 29%

Quinhon 72,000 1%

Danang 62,000 1%

Others 200,000 4%

Total 5,464,000 100%

Vietnam container volume

by port (2008 est)

Up to 11 different

terminals in HCMC-Cai

Mep region by 2013

“Vietnam is one of the few countries in Asia projecting solid export growth in 2009. The majority of that trade expansion will be with North America, which is Vietnam’s largest export market.”

APL Press Release

May 2009



APL revamps PS-1, direct Vietnam call added APL is to launch the first direct Vietnam to US West Coast service with the addition of a call at the newly opened Saigon Port-PSA (SP-PSA) terminal in Cai Mep-Thi Vai, located about 90 km from Ho Chi Minh City, on its revamped PS-1 service. New World Alliance partners, HMM and MOL also have slots on this service. In addition to the new Vietnam call, the revamped PS-1 will see Port Kelang added to the rotation. A Shanghai call was added on the eastbound leg earlier on 31 March. There will also be double calls at Laem Chabang and Singapore with both ports now served on the eastbound and westbound direction. This will enable the service to serve as a Singapore-Thailand and Singapore-Malaysia feeder loop at the western end. The revised rotation of the PS-1 starts from May 28 when the first Port Kelang call is made with the APL DENVER. The same vessel will make its first sailing from Vietnam on June 4. Transit time from Ho Chi Minh City to Seattle on the new direct service is 15 days. APL used to advertise a 13 day HCMC-Seattle service via relay at Hong Kong in the past. A seventh ship will be deployed on the PS-1, making it longest Far East-US West Coast service rotation currently. Most FE-USWC services deploy 4-6 vessels and it is unusual to see an extended deployment on this sector. The seven ships deployed will be APL DENVER, APL LOS ANGELES, APL EXPERIENCE, APL NEW YORK, APL ATLANTA, APL EARNEST and APL UNITY (former HYUNDAI UNITY, recently transferred to APL).

MOL also adds Vietnam call on PSX Apart from APL, MOL has separately announced plans to offer a direct service from Vietnam to the US West Coast. The carrier’s Pacific Southwest Express (PSX) service, which is also part of the New World Alliance offering involving APL and HMM, will begin calling next month at the Tan Cang (Saigon New Port) - Cai Mep terminal. The first sailing will be ensured with the 6,350 teu MOL PREMIUM, departing Cai Mep on June 4. The modified PSX will be run with six ships of 5,900-6,350 teu, instead of five previously, with the additional ship (MOL PREMIUM) recalled from the MOL idle vessel pool. Apart from the Cai Mep addition, the other change concerns the removal of the first call at Oakland, connecting to Los Angeles directly on the eastbound leg. MOL advertises a transit time of 16 days from Cai Mep to Los Angeles. MOL is expected to relay Cambodia cargo using barges from Phnom Penh to Cai Mep to connect to the new PSX service.

SERVICE UPDATES

PS-1 (New World Alliance)

Vessels Deployed:

7 ships of 4,700-5,000 teu

Port Rotation:

Port Kelang, Singapore, Laem

Chabang, Cai Mep (Ho Chi Minh

City), Yantian, Hong Kong,

Shanghai, Seattle, Vancouver,

Yokohama, Kobe, Kaohsiung,

Chiwan, Laem Chabang,

Singapore, Port Kelang.

Revamped PS-1

Service Detail

Revamped PSX

Service Detail

PSX (New World Alliance)

Vessels Deployed:

6 ships of 5,900-6,350 teu

Port Rotation:

Xiamen, Dachan Bay, Cai Mep

(Ho Chi Minh City), Hong Kong,

Yantian, Los Angeles, Oakland,

Tokyo, Xiamen



CMA CGM to route US-FE 'PEX 3' service via Suez CMA CGM is to convert its China-US Gulf-US East Coast service (PEX 3) - currently transiting Panama both directions - into a Round the World eastbound operation transiting via Panama and Suez. The revised PEX 3 will call successively in China, US Gulf, USEC, Tangier (Med hub), Jebel Ali (Middle East hub) and back directly to China. The rotation is as follows: Shanghai, Xiamen, Chiwan, Hong Kong, Houston-Bayport, Miami, Jacksonville, Savannah, Charleston, Norfolk, Tangier, Jebel Ali, Shanghai. The eastbound Tangier call will allow connections from the US to the Med basin and to West Africa by transhipment. This Tangier call was initially planned on the new 'Columbus' pendulum service, launched jointly with Maersk Line this month but was not implemented on that service as it is currently rounding the Cape of Good Hope instead of transiting via the Med and Suez. The revised PEX 3 service will employ nine ships of 5,000 teu, against eight ships with the current rotation involving the transit via Panama both ways and a call at Los Angeles. The revised PEX 3 will no longer call in California (Los Angeles), served already with the PRX. It is currently unclear if slot buyer CSCL (slotting on the existing PEX 3 under label AAE 4), will go on with the new pattern. Interestingly, MSC has recently opted for an FE-USEC service via Panama and Suez in the westbound direction for its 'Golden Gate' service without any Middle East or Med calls

Maersk Line TP-6 to focus on Los Angeles only

Maersk Line is to remove the Tacoma and Vancouver calls from its transpacific TP-6 service (currently part of joint AE-6/TP-6 Pendulum), which will then be limited to a single North America call at Los Angeles. With this change, the entire cargoload of the 9,500-10,000 teu vessels deployed on the service will be handled at the single port in the US West Coast (it will take about 3 days to complete the discharge and load operations at LA). The Far East-Vancouver route is now covered with the new TP 9 loop (string of the TP-3 / TP-9 service - ensured jointly with CMA CGM). For time being, there will be no direct Far East-Tacoma connections.

New “PEX 3”

Service Detail

PEX (CMA CGM)

Vessels Deployed:

9 ships of 5,000 teu

Port Rotation:

Shanghai, Xiamen, Chiwan,

Hong Kong, Houston-Bayport,

Miami, Jacksonville,

Savannah, Charleston,

Norfolk, Tangier, Jebel Ali,

Shanghai

New TP-6

Service Detail

TP-6/AE-6 (Maersk Line)

Vessels Deployed:

14 ships of 9,500-10,000 teu

Port Rotation:

(Eur)...Tanjung Pelepas, Yantian,

Hong Kong, Los Angeles,

Yokohama, Nagoya, Shanghai,

Ningbo, Xiamen, Hong Kong,

Yantian, Tanjung Pelepas...(Eur)



Maersk joins MSC on Europe-ECSA services Maersk Line is to develop its Europe-ECSA services through an additional North Europe-ECSA service and a new direct West Med-ECSA service, both through slot buying on MSC services, effective from July. On the North Europe-ECSA trade, Maersk is to buy slots on the MSC's North Europe-ECSA service, adding to the carrier's core Europe-ECSA 'L-Class' service. Maersk will brand the service 'SAMEX'. Maersk actually joins four other slot buyers on this service : Maruba, CSCL, K Line and Evergreen. It is not yet known if Maersk will maintain its slot charter on the Hamburg Süd 'River Plate Express' service. On the Med-ECSA route, Maersk is to buy slots on the MSC's Med-ECSA Loop 1, allowing it to connect directly western Med ports (Valencia, Gioia Tauro, Genoa, Livorno, Fos, Barcelona) to Brazil and Argentina. Maersk will brand the service 'Apollo'. Maersk currently offers Med-ECSA services through transhipment at Algeciras and Tangier between Med feeders and both its core Europe-ECSA 'L-Class' service and its current SAMEX relay service. This latter service, launched a few weeks ago, is to be closed.

Maersk joins CMA CGM on FAL 3 Beginning in June, Maersk Line is to team up with CMA CGM on the Asia-Europe FAL 3 service, which will be branded AE-23 by Maersk. Nine CMA CGM ships of 8,500-9,600 teu are currently deployed. Maersk will provide one ship, the 9,600 teu MAERSK ALGOL, now deployed on the Asia-Europe FAL 1/AE-21 service. Xiamen will be removed under the new rotation.

MSC to resume FE-Black Sea ‘Tiger’ Service MSC is to resume next week its direct Asia-Black Sea 'Tiger' service. This service was suspended in December last year in response to deteriorating market conditions. The new ‘Tiger’ rotation will be slightly different from the previous service, with additional calls at Odessa and Ilichevsk on top of Istanbul and Constantza. The new 'Tiger' also covers Beirut. The full port rotation of the new ‘Tiger’ service has not been announced. It will be ensured with ships of 6,700 teu shifted from the 'Phoenix' service, which is to be replaced. The 'Phoenix' serves the FE-Red Sea-East Med trade with the following rotation Beirut, Istanbul, Trieste, Mersin, Beirut, Jeddah, Colombo, Singapore, Qingdao, Busan, Shanghai, Ningbo, Yantian, Hong Kong, Singapore, Jeddah, Beirut. Separately, MSC will modify two other Asia-Europe loops :

� Asia-Europe 'Lion' service : addition of a westbound call at Jeddah. � Asia-Med 'Dragon' service : Gioia Tauro dropped and Piraeus added.



MSC revise N Eur-Greece-Turkey services MSC is to add Hamburg to its NW Europe-Eastern Med Loop 3 while removing Thessaloniki. This latter port will be henceforth covered with the Loop 4. The Loop 3 now focuses on the Turkish market, with transhipment possibilities to the Black Sea. Hamburg-based Hapag-Lloyd is involved in these changes as it buys slots on these two loops, which it brands EEX 1 and EEX 2. These two loops are served by a total of seven ships of 2,400 to 3,500 teu. Interestingly, this move occurs a fortnight after CMA CGM announced the launch of a new weekly service linking North Europe, Greece and Turkey, branded 'French Europe Med Express' (FEMEX), which is to begin in two weeks. The FEMEX includes a call at Hamburg, as well as calls at Felixstowe, Antwerp and Le Havre. MSC is also to adjust its North Sea & Liverpool Relay service, which connects Antwerp, Liverpool, Le Havre, Antwerp, Bremerhaven and Hamburg.

CSAV and Maruba upgrades Europe-ECSA service CSAV has announced the introduction of a new version of its Europe-ECSA service (EUROATLAN), which will use seven ships of 4,000 teu fitted with 500-700 reefer plugs, instead of six ships currently. Six of these vessels are operated by CSAV and one by its partner Maruba. The injection of the 4,000 teu ships started a few weeks ago and are progressively replacing the remaining 3,000-3,500 teu ships. The key changes are the addition of Tilbury, Le Have and Rio de Janeiro. The new rotation covers Rotterdam, Tilbury, Hamburg, Antwerp, Le Havre, Rio de Janeiro, Santos, Buenos Aires, Montevideo, Rio Grande, Paranagua, Itajai, Santos, Rio del Janeiro, Salvador, Rotterdam. Slot buyers K Line and Hanjin Shipping are expected to continue their current arrangements. The new rotation will be inaugurated with the sailings of the LOA from Rotterdam on 22 May and of the MARUBA CRISTINA from Buenos Aires on 21 May.

Yang Ming to launch own Bangladesh feeder Yang Ming Line is to launch a Singapore-Port Kelang-Bangladesh (Chittagong) weekly shuttle in co-operation with Orient Express Lines (SCS), using the 1,803 teu YM INAUGURATION and the 860 teu OEL FREEDOM. The YM INAUGURATION will be one of the largest ships calling at Chittagong. She is one of three YML ships to be made redundant by the capacity upgrade of the YML-OOCL ‘China Pakistan Express’ service (CPX). Yang Ming Line already offers Straits-Chittagong feeder services through slot buying on services run by Hanjin, CMA CGM and CSCL.



Other services news Evergreen, Wan Hai and Hapag-Lloyd are to boost the capacity of their joint 'China-India Express' (CIX) with the replacement of the four 1,500-1,800 teu ships by larger units of 2,600-3,300 teu, including the OSLO EXPRESS (3,322 teu), ITAL ORIENTE (2,824 teu), WAN HAI 315 (2,646 teu) and a fourth as yet unnamed ship. CIX connects Kaohsiung, Hong Kong, Shekou, Singapore, Port Kelang, Colombo, Mumbai-Nhava Sheva, Port Kelang, Singapore, Kaohsiung. +++++ Evergreen Line has organized a North China-Korea-Hong Kong weekly service connecting Xingang, Dalian, Busan and Hong Kong (KHK - [beg=service]83103[mid1]83101[end]), employing the 2,868 teu GATHER and GENTLE. It encompasses some connections cover by the former Hua Bei-Hong Kong service (HBH - [beg=service]83101[mid1]83101[end]), which was ensured with two ships of 1,600 teu.<br><br>(Source : Correspondent / Alphaliner) +++++ Evergreen Line has closed its Adriatic feeder service connecting Taranto (hub) to Ancona, Ploce, Bar and Durres, launched one year ago (ADS ex ADF). It was ensured with the 974 teu IRIS BOLTEN, redelivered at expiry of her charter. Ploce, Bar and Durres, will continue to be covered through the extension of two Taranto-Greece feeder loops (GF 1/GF 2). These services are operated under the Evergreen Line brand by the company's Italian subsidiary Italia Marittima. It is recalled that Evergreen has launched in March a high volume Adriatic feeder loop connecting Taranto, Koper, Trieste and Venice (ADF) consecutively to the closure of its Far East-Med 'Adriatic Express' service (ADR). The ADF is to be harmonised soon with two 2,800 teu ships, with the ITAL ONESTA to replace the 2,741 teu STADT WISMAR, whose charter expires in July. +++++ Hamburg Süd is to assign 5,900 teu 'RIO'class ships to its Europe-ECSA maim loop ('River Plate Express'), replacing shorter units of 5,560 teu. The two sizes of ships will actually be swapped between the 'River Plate Express' and the FE-ECSA service jointly run with Maersk (ASAS / NGX). A first attempt one year ago to assign 5,900 teu ships to the 'River Plate Express' did not materialize due to stagnating volumes.

Evergreen alters Adriatic

feeder services

Hamburg Sud to assign

5,900 teu ships to Eur-

ECSA

Evergreen organizes

North China – Korea –

Hong Kong service

Evergreen, WHL and HL

in China-India service

upgrade



+++++ APL has extended its Singapore-Hong Kong-Philippines 'Mindanao Express' (MDX) to Dalian and Busan. The MDX now connects Singapore, Cagayan de Oro, Davao, Dalian, Busan, Hong Kong, Bugo, Davao, Singapore. The rotation takes an extra week, with a fourth vessel added to maintain weekly sailings. Four ships of 1,300-2,500 teu are deployed on this run. +++++ Mercosul Line, the Brazilian arm of the APM-Maersk group, has fully developed its Brasil domestic and feeder service with the injection of the 2,478 teu MERCOSUL SANTOS and MERCOSUL SUAPE, adding to the smaller NEDLLOYD DE LIEFDE (1,055 teu), which was until recently the only ship assigned. This service now connects Santos, Paranagua, Imbituba, Suape, Pecem, Manaus, Pecem, Suape and Salvador on a weekly basis. The three ship employed fly the Brazilian flag. Of note, the MAERSK SUAPE was delivered as MAERSK NEWBURY, while the MERCOSUL MANAUS, initially intended to join the Mercosul Line, is actually deployed on the Maersk Line - Hamburg Süd 'Scan Med' service under the Liberian flag. +++++

Grimaldi has launched the 'Lisbon Express', a roro service focusing on the Portugal-Angola market. The new service will connect Leixoes and Lisbon to Luanda, with intermediate calls at Dakar on some sailings. Medium size roros of 15,000 tdw and 2,000-2,500 m of roll are to be used, including the VEGALAND, THEBELAND and EUROCARGO SALERNO.

APL extends ‘Mindanao

Express’ to North Asia

Mercosul develops Brazil

cabotage services

Grimaldi launches

Portugal-Angola service



Maersk in $559M first quarter loss The grim outlook for the industry has been affirmed by the latest first quarter financial results announced by the main liner operators. The container shipping activities of the AP MØller-Maersk Group recorded a net loss of $559 M in the first quarter, compared to a profit of $80 M in the first quarter of 2008. Last year’s results were boosted by a $141 M gain on sale of ships, which had shrunk to only $12 M in the first quarter this year as asset values have plunged. The AP MØller-Maersk Group’s overall results was a loss of $345 M, its worst ever quarterly performance, dragged down by the poor liner performance. Apart from its shipyard unit, the group’s other main business segments - comprising of the APM Terminals business; tankers and offshore unit; oil and gas activities; and retail activities – were all profitable in the first quarter. Revenue of the shipping activities of the group, which comprises the activities of Maersk Line and Safmarine, dropped by 28% to $4.9 Bn. Most worrying for the carrier is the negative EBITDA of $19 M, representing a shift to negative cashflow for the quarter, a reversal from the positive EBITDA of $330 M from the same period last year. AP MØller-Maersk - Container shipping activities highlights 1Q09

In US$ 1Q09 1Q08 % Change

Revenue 4,906 6,794 -28%

EBITDA -19 330 -106%

Operating Profit -436 -72 506%

Net Profit -559 80 -799%

Volume in Mteu

Maersk (est) 2.6 3.0 -14%

Safmarine 0.336 0.328 2%

Total 2.936 3.338 -12%

The combined liftings of the group dropped by 12% in total, mainly due to the 14% drop of liftings by Maersk Line with drops seen across the board on all the tradelanes that it operates in. The only growth was seen in Safmarine’s liftings, which increased by 2% to 336,000 teu. Safmarine operates primarily in the African trades. Rates declined by 24% overall but the conditions on the Asia-Europe trades were the most dire, falling by 44% compared to the same period last year. Maersk stated in its results announcement that “the result for (the Asia-Europe) market is considerably lower than for other trades and only significant rate increases can change this situation.”

Carriers with 1Q09 net

profit/loss announcements

COSCO -$490M

CSAV -$265M (est)

CSCL -$177M

EMC -$83M

Hanjin -$194M

Hapag Ll -$325M (est)

HMM -$62M

Maersk -$559M

NOL -$245M

YML -$93M

Carriers Negative

Scorecard

CORPORATE UPDATES

Trade Volume Rates

Asia-Europe -8% -44%

Transpacific -14% -5%

Latin America -25% -15%

Transatlantic -21% 0%

Africa -17% -12%

Safmarine 2% -25%

Maersk/Safmarine

Volume/Rate Developments

% Change - 1Q09 vs 1Q08



-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

US

$M

Meanwhile, Maersk stated that it had achieved “reasonable volume cover” for the new transpacific contract season that began on 1 May. However, it added that this was achieved at “considerably lower rates.” It said it achieved “minor increases” on the Asia-Europe trades and it be “a tough fight to compensate” for the losses expected from the Transpacific. Maersk said that it has put 18 vessels representaing 6% or about 110,000 teu of capacity on lay up, but was still unable to prevent a fall in utilisation rates. It said that it was fortunate to have a small orderbook due for delivery in 2009 and 2010, although there will be a larger number of vessels due in 2011 and 2012. The company said it is in close contact with the yards and are “not trying to cancel any orders” but is trying to see if they can reschedule some of its orders. It had also cut total staff levels by 800 in the first quarter. The line has reduced its headcount by over 5,000 people over the last 15 months, representing 20% of its headcount. Following the announcement, Maersk had also informed its customers that it will be cutting the number of regions in Europe from four to two, with North and Central Europe merged into one region and the East Mediterranean and France, Iberia, Magreb regions also to be combined into a single Mediterranean region.

NOL 1Q loss hits $245 M

NOL has announce a net loss for the first quarter of $245 M, coming in slightly worse than its earlier profit warning that it could lose $240 M. This came as total group revenue declined by 36% to $1.546 Bn. As is the case with a number of major carriers, the group suffered from a negative cash flow position in the first quarter, with EBITDA of -$144 M. All of its three business segments, comprising of the liner shipping activities of APL, the logistics business under APL Logistics and the container terminals unit, suffered revenue declines. The container shipping segment made an operating loss of $237 M, while its logistics and terminal arms were marginally profitable. NOL Group 1Q 2009 vs 1Q 2008 – Highlights by business units

APL APL Logistics APL Terminals

$ M 1Q09 1Q08 % 1Q09 1Q08 % 1Q09 1Q08 %

Revenue 1,294 2,019 -36% 241 363 -34% 112 145 -23%

Operating Income -237 90 NA 14 17 -18% 4 12 -67%

The company blamed the “acute deterioration in trading conditions” for the loss despite taking steps to reduce capacity and cut costs. Utilisation levels in the first quarter was 80%, the worst performance on record. This came despite a 15% reduction in average capacity during the period.

Ships Delivery

Owned

16 x 7,450 teu 2011/2

22 x 4,500 teu 2011/2

4 x 3,200 teu 2009

4 x 1,802 teu 2009

Chartered

8 x 13,092 teu 2010/1

4 x 2,556 teu 2009/10

5 x 1,713 teu 2010

Maersk/Safmarine

Newbuilding

DeliverySchedule

NOL Group

Quarterly Net Profit/Loss

2007-2009



-200

400

600 800

1,000

1,200 1,400

1,600

1,800 2,000

$/

teu

1Q08 1Q09

-32%

-35%

7%

APL’s lifting volumes fell by 27% overall, with the largest falls registered on the Transpacific trade. However, it achieved an increase in average rates in the Transpacific due to higher rates on the backhaul westbound sector from the US to Asia. APL Liftings 1Q2009 vs 1Q2008

Meanwhile, rates on both the Asia-Europe and Intra-Asia trades fell by over 30% compared to the first quarter of last year. Of particular concern for APL is drop in Intra-Asia rates, as it is now the largest tradelane for the carrier. The carrier said that the rate deterioration was particularly severe in the long-haul Asia to Middle East segment, which was due to “excess supply as well as cascading of tonnage from other trades.”

Eimskip to sell Containerships shares

As part of its financial restructuring program, Icelandic company Eimskip has signed an agreement to sell 65% of its shares in the Finnish shipping company Containerships Oy to the privately-owned Container Finance Ltd Oy, which is the current minority owner. Eimskip acquired this share in October 2006 and Containerships has since been affiliated to the Eimskip group. After the sale, Containerships and Eimskip will continue their co-operation in Denmark and Finland. Eimskip Denmark will remain the agent for Containerships in Denmark and Containerships will remain the agent for Eimskip in Finland. The sale of Containerships is part of the financial restructuring of Eimskip. With the sale of Containerships Eimskip’s debts will decrease by ISK 11 Bn ($87 M) , but it will record a loss from the sale of ISK 3.9 Bn ($31 M). The sale is also a part of Eimskip’s strategy to focus on the North Atlantic and reefer forwarding worldwide and to sell assets that are not part of its core business. Eimskip will continue its restructuring work as has been announced. Eimskip is still working on the sales process of the cold store companies in North America. Eimskip says that its restructuring will be finalized before the end of June 2009.

Liftings (teu)

Trade 1Q2009 1Q2008 Change

Trans-Pacific 302,000 464,000 -35%

Asia/Europe 168,000 236,000 -29%

Transatlantic 56,000 82,000 -32%

Intra-Asia 358,000 440,000 -19%

Latin America 78,000 104,000 -25%

Total 962,000 1,326,000 -27%

APL change in average rates

1Q09 vs 1Q08

Containerships currently

operate 15 ships of

between 250-1,000 teu

deployed in the North

European and East

Mediterranean trades.

The company has

- 500 employees

- 17 offices in 14

countries

Volumes handled 2008:

226.000 TEU



MISC suffers large liner loss – exits Europe trade

MISC Berhad has announced a RM 419 M ($117 M) operating loss for its integrated liner logistics activities in the first quarter of 2009. For the full financial year ended 31 March 2009, MISC Berhad recorded a loss of RM 990 M ($275 M) for the liner sector. The first quarter loss was particularly severe as it was achieved on revenues of only $861 M, a negative operating margin of 49%. The losses from liner operations have been mounting gradually over the last five quarters at the Malaysian carrier and it has only been profitable at the operating level in two of the past 9 quarters.

The situation has become untenable, even as the group remained profitable overall due to profits on its energy-related shipping business. It has culminated in the decision announced last week to terminate its participation in the Grand Alliance, in which MISC was a partner engaged only in the Asia-Europe services of the Alliance (it does not participate in the Transpacific or Transatlantic trades). In a statement issued last week to the Kuala Lumpur Stock Exchange, MISC Berhad says it has issued notice to its partners of the Grand Alliance (Hapag-Lloyd/NYK/OOCL) that it is to leave this partnership effective from January 2010 and would effectively withdraw MISC’s participation from the European and Mediterranean trade lanes covered by the Grand Alliance MoU, which had been renewed in 2007. Following from the restructuring, the focus of MISC’s Liner Division will be limited to only the Intra-Asia trades, with the Middle-East/India Subcontinent to Asia trade being one of its core areas.

-200,000

-100,000

0

100,000

200,000

300,000

400,000

500,000

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

US$

(co

nve

rte

d f

rom

RM

at

curr

en

t ra

te)

MISC Bhd - Integrated Liner Logistics Division

Revenue/Operating Profits

Revenue Operating Profit

''The present global

economic downturn has

severely impacted the

global liner industry with

many leading operators

having to react radically

to manage the downturn.

The withdrawal of MISC’s

Liner Division from the

Asia-Europe trade is part

of a portfolio restructuring

to reposition the business

on a firmer footing that

will drive future

expansion''

MISC statement

explaining its withdrawal

from the Europe trade



Following MISC’s announcement, the Grand Alliance partners issued a statement that said the group regretted MISC’s surprise announcement to withdraw from the alliance but will respect the carrier’s decision. MISC Berhad currently contributes seven ships of between 3,500-8,000 teu to the Grand Alliance services, representing 5% of the total capacity of the pool. The remaining partners within the alliance said that they will “be replacing these ships in the context of our normal cascading,” and that MISC’s withdrawal will not have any impact on the Alliance’s existing service structures. MISC Berhad has existing charters on four of Wan Hai’s 6,000 teu vessels which it contributes to the Grand Alliance’s Far East-Mediterranean services. The charters on these vessels will expire only in late 2010 and it is presently unclear what the carrier will do with these vessels. It had also committed to a long term charter arrangement for four 8,500 teu vessels in Japan due for delivery in 2010 and 2011 which would be presumably surplus to its requirements now that it will no longer focus on the long haul trades.

Background on MISC participation in the Asia-Europe trades

Malaysia International Shipping Corporation (MISC) was formed in 1968 as Malaysia’s national shipping

line. Currently, the Malaysian state-owned oil and gas company, Petronas, owns 62% of the company. It

has been restyled MISC Berhad in September 2005. MISC Berhad is primarily an energy transportation

company, operating a large fleet of oil tankers and LNG carriers. MISC Berhad has maintained a liner

network that consists of an array of services linking Malaysia to SE Asia, India, Pakistan, Middle East,

China, Korea, Japan, ANZ and Africa. It is also active on the Asia-Europe trade with its current

participation in the Grand Alliance.

MISC first participated in the Far East-Europe container trade through its technical participation in the

now-defunct ScanDutch consortium. MISC joined ScanDutch in 1979 when it concluded a slot exchange

agreement with the pool, bringing its two 2,770 teu newbuildings. After the demise of ScanDutch, MISC

became a full member of the Tonnage Sharing Agreement (TSA) on January 1992. TSA was a technical

partnership set up with CGM and Nedlloyd to link North and South Europe to the Far East.

In 1996, the TSA was dissolved, giving birth in early 1996 to the 'Global Alliance', comprising APL, MOL,

Nedlloyd and OOCL, with MISC being a partner on the Asia-Europe trade only as it was not involved on

the Pacific or on the Atlantic. In late 1997, the Global Alliance was dissolved and replaced by the 'Grand

Alliance' (second of the name), formed by P&O Nedlloyd, NYK, Hapag-Lloyd, OOCL and MISC. Since then

MISC has continued operating in Asia-Europe trades with the Grand Alliance, which was reorganized in

February 2006, following the departure of P&O Nedlloyd.

Source : Alphaliner archives



MSC CAMILLE (14,000 teu) and MSC KALINA (13,798 teu) is delivered Two ULCS have been completed almost simultaneously for MSC account, the MSC CAMILLE (14,000 teu) and MSC KALINA (13,798 teu), built in Korea respectively by DSME amd Samsung. They bring to five the number of ULCS (>13,500 teu) delivered to MSC so far. While the MSC CAMILLE is apparently lying idle at the yard, the MSC KALINA is to join the FE-Europe 'Silk' service at the end of the month.

CPO RICHMOND (4,253 teu) joins Hamburg Süd German owner Reederei Claus Peter Offen (CPO) has received the CPO RICHMOND, fifth of ten 4,255 teu ships ordered at Hyundai H.I. on April 2007. Six of them have been chartered by Hamburg Süd and four by UASC. The CPO RICHMOND is one of the Hamburg Süd units and will sail as CAP HARVEY. She is to perform a Far East-ECSA trip to join the Med-ECSA service operated by Hamburg Süd, CMA CGM, CSAV, Maruba, Zim and Niver Lines (Sirius). The CPO RICHMOND follows the CPO BALTIMORE, delivered two weeks ago.

WARNOW CARP (990 teu) joins CSCL German owner Schiffahrtskontor Warnow has received the 990 teu WARNOW CARP, sixth unit in a new series of ships ordered by Schiffahrtskontor Warnow and Hermann Buss at the Ouhua Shipyard (Euro-China Shipyard), located in the Zhejiang Province. The WARNOW CARP has joined her charterer CSCL on its North China-Japan service, on which Onto Shipping co-loads. She follows the MEDAEGEAN, delivered in November

DELIVERY UPDATES

Recent Deliveries

May 2009

Name Teu Operator

MSC KALINA 13,798 MSC

CMA CGM CENDRILLON

8,465 CMA CGM

NYK RIGEL 4,922 NYK

CAP HARRISON 4,255 Ham. Süd

CAP HARVEY 4,253 Ham. Süd

MSC NAJWA 4,254 MSC

KOTA LAYAR 4,253 PIL

KOTA LAYANG 4,253 PIL

NYK MARIA 2,664 NYK

CITY OF HONG KONG

2,564 N/A

WAN HAI 172 1,713 Wan Hai

O.M. BONITATIS 1,304 N/A

DANZIGERGRACHT 1,069 N/A

DELTAGRACHT 1,069 N/A

WARNOW CARP 990 CSCL

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