Container Shippers Embrace Dual-Fuel Vessels for a Greener Future

November 22, 2024

Container shipping companies, including Maersk, CMA CGM, and COSCO, are investing in dual-fuel vessels to reduce greenhouse gas emissions and comply with global regulations and customer expectations. 

These new ships are designed to operate on both traditional fuels and alternative options like liquefied natural gas (LNG), methanol, hydrogen, and ammonia. This strategy addresses the uncertainty surrounding the most viable green fuel for the future. Shipping contributes approximately 3% of global GHG emissions, necessitating significant investment and clear regulations to achieve decarbonization goals. 

While LNG is currently favored for its cleaner combustion, concerns about methane leaks persist. Companies are also exploring other fuels, such as green methanol and biofuels, and are advocating for global guidelines to support the transition to greener shipping practices

💡 Insights for Container Investors​

• Increased Demand for Green Technology: The transition to dual-fuel vessels signals rising demand for alternative fuels and sustainable shipping solutions, presenting opportunities for container investors to focus on companies embracing green innovations.

• Regulatory-Driven Growth: As global regulations push for decarbonization, companies investing in dual-fuel vessels are better positioned for compliance, reducing future risks and enhancing long-term profitability, benefiting investors.

• Emerging Market Opportunities: The diversification into alternative fuels like LNG, methanol, and hydrogen creates potential growth sectors, allowing investors to align with businesses that innovate within the green shipping ecosystem.

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Buy-To-Let Supplying The Thailand-China Railway Project

Buy-to-Let has successfully secured contracts to supply containers for the prestigious Thailand-China Railway project, an 873km high-speed rail line connecting Bangkok with the Laos-China railway. This venture is generating an impressive 21.06% return on investment (ROI) in rental income, providing substantial returns for our clients’ investments.

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Owning and renting containers to the Thailand-China Railway Project is delivering 21.06% p.a.

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44% of New Global Containership Orders Aimed at Fleet Replacement

October 9, 2024

The global containership orderbook has reached a record high, with 44% of the new vessels expected to replace ageing fleets, especially those 20 years or older. Maersk has been slower than its competitors in renewing its fleet but plans a renewal program for the next five years. This surge in orders, particularly in China, has also reduced available capacity for other ship types, such as tankers and bulk carriers. The global container fleet now exceeds 30 million TEU for the first time.

💡 Insights:

• Long-Term Growth Opportunity: With 44% of the record-high containership orders set for fleet replacement, investors can anticipate a more efficient global shipping network, driving long-term growth and improved profitability.

• Increased Demand for Newer Vessels: As older vessels are phased out, investors might benefit from rising demand for newer, eco-friendly ships, potentially boosting asset values and charter rates.

• Capacity Constraints in Other Sectors: The focus on container ships could lead to tighter capacity in other shipping segments like tankers and bulk carriers, offering potential diversification opportunities for investors.

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Atlantica Shipping Expands Fleet with Return to Container Market

September 18, 2024

Atlantica Shipping, based in Oslo, has reentered the container shipping market by acquiring the 4,600 TEU vessel Northern Power, renaming it Atlantica Power. The ship, built in 2010, is chartered to CMA CGM until mid-2026.

This move marks a significant return for Atlantica, which also owns nine offshore vessels and two supramax bulk carriers. Financial details of the purchase have not been disclosed.

💡 Insights for Container Investors​

• Expansion Opportunities: Atlantica's reentry into container shipping with a long-term chartered vessel provides a stable platform for investors to tap into growing global trade demand.

• Long-term Security: The charter agreement with CMA CGM until 2026 ensures a steady revenue stream, offering reliable returns for container shipping investors.

• Diverse Portfolio: With investments across offshore vessels and bulk carriers, Atlantica’s move into container shipping enhances its diversified portfolio, presenting investors with reduced risk exposure and potential for growth.

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MSC to Significantly Boost Slot-Sharing Agreements in 2025

September 16, 2024

MSC, the world’s largest container shipping company, is set to increase its share of slot-sharing agreements significantly in 2025.

Despite expanding its fleet and focusing on standalone services after ending its 2M partnership with Maersk, MSC has signed new agreements, including a three-year deal with Israeli carrier ZIM. By February 2025, MSC’s slot-sharing agreements will rise from 10% to 26%, while standalone services will increase to 61%.

This strategic shift highlights MSC’s continued collaboration on key trade lanes.

💡 Insights for Container Investors​

- Increased Capacity Utilization: As MSC secures more slot-sharing deals, container investors can expect higher fleet utilization, which can lead to increased profitability.

- Market Expansion: The new agreements could open up additional trade routes and markets, enhancing growth prospects for container shipping services.

- Improved Stability: Slot-sharing agreements help distribute operational costs and risks, offering a more stable investment environment in the volatile shipping industry.

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Lidl’s Tailwind Shipping Expands with New Rail Service to Austria

September 6, 2024

Lidl’s Tailwind Shipping Lines has introduced a new rail service, the Panther Shuttle, connecting the Slovenian port of Koper to Austria’s Graz freight terminal.

This service offers five weekly connections, with plans to expand based on demand. Tailwind Intermodal will handle trucking logistics at the Graz terminal, facilitating container transport between the Mediterranean and Eastern Europe. This move enhances Lidl’s logistics capabilities, positioning them as an intermodal service provider.

📌 Insights for Container Investors

- The addition of a rail component to Lidl's shipping line expands logistics capabilities, presenting opportunities for container investors to benefit from the increased efficiency and intermodal transport solutions.

- With the new rail link between Koper and Graz, investors can capitalize on Lidl’s enhanced ability to serve Eastern European markets, potentially driving higher container demand in the region.

- The integrated rail and trucking services allow for more flexible and cost-effective shipping, improving margins for container investors involved in intermodal transport.

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Buy-To-Let wins contract to supply The Shenzhen’s Phase V Metro project

Buy-to-Let has secured contracts to supply containers for Shenzhen’s Phase V Metro project, the city’s largest infrastructure construction endeavor with a total investment of 195.2 billion yuan (US$27 billion). This project is generating an impressive 20.07% ROI in rental income, providing substantial returns for our clients.

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Owning and renting containers to the Phase V Metro project is delivering 20.07% p.a.

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Buy-To-Let Supplying Thailand High-Speed Rail Linking Three Airports Project

Buy-to-Let has secured contracts to supply containers for Thailand’s High-Speed Rail Linking Three Airports Project. This crucial infrastructure initiative connects Don Mueang, Suvarnabhumi, and U-Tapao airports. Our involvement is yielding a remarkable 19.8% ROI in rental income, delivering substantial returns for our clients.

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Owning and renting containers to the Thailand High-Speed Rail Linking Three Airports Project is delivering 19.8% p.a.

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Walmart Expands Container Operations to Strengthen Supply Chain Control

August 14, 2024

Walmart is expanding its container operations to gain more control over its supply chain, aiming to minimize disruptions and ensure consistent product availability. This strategic move highlights Walmart’s commitment to strengthening its logistics capabilities amidst global supply chain challenges.

Insights for Container Investors

  • Stable Partnerships: Walmart's expansion could lead to long-term partnerships with container providers, offering steady revenue streams for investors.

  • Increased Demand: As Walmart boosts its container usage, demand for containers may rise, potentially driving up leasing rates and profitability.

  • Resilience Focus: Investing in companies that enhance supply chain resilience could yield benefits as more retailers follow Walmart's lead in securing logistics control.

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    Buy-To-Let Supplying The South-to-North Water Diversion Project

    Buy-to-Let has secured contracts to supply containers for China’s massive South-to-North Water Diversion Project, the largest of its kind. This project channels water from southern rivers to the arid north, and our involvement is generating an impressive 24.8% ROI in rental income, delivering substantial returns for our clients.

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    Owning and renting containers to South-to-North Water Diversion project is delivering 24.8% p.a.

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