Contships Secures Feeder Charters as 30-Ship Expansion Looms

Greek feeder specialist Contships Logistics has secured new mid-term employment for its existing tonnage with CMA CGM and Ocean Network Express (ONE), bolstering a $205.8 million revenue backlog as it prepares for a massive fleet expansion. The Nikolas Pateras-led owner is leveraging current market strength to lock in fixed income ahead of a newbuilding program that could more than double its current fleet size.

According to the company’s third-quarter earnings report, the Contship Sky has been renewed with CMA CGM at $16,250 per day for a duration of 11 to 13 months. A second fixture involves the Contship Way, which has been chartered to ONE for 21 to 24 months at $16,500 per day. While commencement dates were not disclosed, the duration of the ONE deal is particularly significant, signaling that major liners remain willing to commit to multi-year feeder capacity despite the broader influx of larger vessel deliveries across the sector.

Strategic Fleet Renewal

The new charters are part of a broader transition for the Athens-based owner, which has been aggressively divesting older assets to fund a move into modern tonnage. Contships sold five containerships during the first nine months of the year for gross proceeds of $59 million, leaving it with a core fleet of 27 owned vessels at the end of September. This divestment strategy provides the liquidity necessary to support a substantial orderbook recently established in China.

In October, Contships signed a letter of intent with Hubei Guangji Green Energy Shipbuilding for 10 firm 1,324 teu containerships. The agreement includes two additional sets of 10 options, representing a potential 30-vessel program. If fully exercised, this order would exceed the size of the company’s current operating fleet, marking a fundamental shift in Contships’ market position from a niche regional player to a dominant tonnage provider in the feeder segment.

Financing and Market Outlook

The $205.8 million charter backlog provides a stable foundation for the company as it evaluates financing alternatives for the newbuilding program. No final financing arrangements have been agreed upon yet, but the secured employment with top-tier counterparties like CMA CGM and ONE enhances the company’s credit profile for potential lenders.

The move to 1,324 teu newbuildings suggests a focus on a specific size class that offers flexibility for regional feeder networks where port constraints limit the use of larger cascaded tonnage. By locking in two-year deals for its current ships, Contships is effectively bridging the gap until its new, more efficient vessels begin to hit the water, ensuring operational continuity during a period of significant capital expenditure.

Source: Splash247