World News
KG Funds Expected to Loose Out as Triple-E's Enter Service
Already-struggling German shipping funds are likely to be hit hard by the entrance of Maersk Line's new Triple-E class containerships onto the Asia-Europe routes, industry news site ShippingWatch reports.
The container shipping giant plans to withdraw smaller ships to make way for the more fuel-efficient huge vessels, and it will return chartered ships to their owners due to the favorable economics of operator-owned vessels.
Maerk Line CEO Søren Skou said many ships will end up in the hands of German ship-owning entities known as KG funds.
"It's too early to say exactly how many ships we're looking at, but it will be a considerable amount," he said.
KG funds, along with German banks, were hit hard by the shipping crisis, and many of the funds have collapsed in recent years.
Maersk Line said it will redeploy some of the surplus ships from the Asia-Europe routes into other geographies such as Africa, South America, or North-South routes, but only when it makes sense economically.
Skou recently said that the company misjudged the speed of recovery in the shipping market when it ordered 20 of the Triple-E ships in 2011.
German banks have been suffering from the drop in the shipping industry in recent years, with some players withdrawing from ship financing.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 635.50 | 5.50 | 744.00 | 2.00 |
| Rotterdam | 580.50 | 11.50 | 749.50 | 16.50 |
| Houston | 596.00 | 5.50 | 763.50 | 10.00 |
| Fujairah | 632.50 | 0.50 | 887.50 | 5.50 |
| Global 20 Ports Average | 645.50 | 3.00 | 830.50 | 6.00 |
| Global 4 Ports Average | 611.00 | 5.50 | 786.00 | 8.00 |
| Global Average Bunker Price | 696.00 | 0.00 | 885.50 | 4.00 |
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