ALPHALINER Weekly Newsletter

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1 ALPHALINER Weekly Newsletter Volume 2018 Issue to Web: Sales: The Alphaliner Weekly Newsletter is distributed every Tuesday. Information is given in good faith but without guarantee. Alphaliner does not accept any liability for any errors or omission or opinion. Please send your feedback, comments and questions to Unauthorized redistribution of the newsletter is prohibited and readers are requested to quote Alphaliner as source for all data derived from the newsletter. Please refer to full user terms and copyrights at Chart of the week New Containership Orders by Month : Carriers have resumed their newbuilding programs after a brief pause in 2016 and early ,000 Orders delivered TEU Delivered Orders not yet delivered To be delivered (Forecasts) ALPHALINER Vessels with a combined slot capacity of 986,000 teu have been added to the orderbook since September 2017, compared to only 361,000 teu in the period between January 2016 and August , ,000 Additional orders are expected to be announced in the coming weeks as carriers and owners look to renew their fleets ahead of the implementation of new SOx emission and ballast water management rules, due to take effect from 1 January , ,000 INSIDE THIS ISSUE: Carriers return to ordering ships 1 Idle fleet/charter Market Updates 3 Idle fleet falls below 1% Charter market in for another push after Lunar New Year Service Updates 8 MSC, ONE, Hapag-Lloyd and HMM unveil co-operation on FE-WCSA trade Wan Hai and THE Alliance launch Far East - Red Sea service THE Alliance names South China hubs Hapag-Lloyd deploys larger vessels on Europe-India service Indamex partners start upgrade of India- US East Coast service YM introduces Korea-Vietnam-Thailand service CNC introduces another Thailand-South Korea link CNC offers a direct Japan-Straits service APL introduces another Japan-Taiwan- Thailand link Evergreen adds two more intra-asia services X-Press Feeders adds another direct link between China and Western India Maersk Line extends Gibraltar-Nigeria service to North Europe and Morocco Containerships PLC and Viasea join forces in the Baltic NileDutch launches Angola feeder Deliveries/Vessel Updates 18 February deliveries Total and MOL conclude a deal for a large LNG bunkering vessel Port and Terminal Updates 20 ZPMC delivers cranes for new Walvis Bay Terminal Solid volumes for DP World in 2017 HHLA : Good numbers in 2017 Impairment charges bite APMT's 2017 performance Two more cranes for DPW Southampton Montreal Port presents plan for satellite box terminal TEU 100, Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan Resurgence of containership orders A flurry of new ship orders have been announced in the past week as carriers and owners return to the shipyards to add to the depleting containership pipeline. Additional vessel orders, ranging from for feeder-sized tonnage to ships of 14,000 and even 22,000 teu, are still being finalised. These could eventually push the orderbook-to-fleet ratio to above 15%. Within the past week, Evergreen has concluded orders for eight 12,000 teu ships with Samsung Heavy Industries of Korea, while also signing long term charter deals with Shoei Kisen, the Imabari Group s ship financing arm, for an additional twelve units of 11,850 teu, to be built in Japan at Imabari-controlled yards. To be delivered in 2020 and 2021, these ships add to Evergreen s existing orderbook which already included eleven Megamax ULCS of 20,150 teu, and 17 units of 2,800-2,900 teu, all scheduled for delivery in 2018 and Further to this, Yang Ming on 13 February announced that its board of directors approved plans for a newbuilding program of 20 containerships. This comprises ten vessels of 11,000 teu, to be chartered from third-party owners, and ten units of 2,800 teu, which will be contracted in the name of the company itself or through a subsidiary. So far, Yang Ming has not named any shipyards or delivery dates for the planned new vessels yet. The new orders will add to the carrier s orderbook of five 14,000 teu ships from Japan s Imabari Group, whose deliveries are due in Jan 2016 Jan 2017 Jan 2018 Jan 2019 Jan 2020 Jan Page 1 Copyright Alphaliner

2 Evergreen Marine unveils details of new 20-ship order Evergreen Marine Corp. (EMC) announced on 8 February that it has concluded orders with Samsung Heavy Industries for eight neo-panamax containerships at a price of $94.4 M each. The eight ships, rated with a capacity of 11,000 teu by Evergreen and 12,000 teu by Samsung in their respective statements, will be delivered in steps from 1Q 2020 to May EMC has allocated the orders to its subsidiaries Greencompass Marine S.A. (four ships) and Evergreen Marine (Hong Kong) Ltd (four ships). The vessels will be m long for a breadth of m (19 rows), with a scantling draft of m. They are designed to sail at a service speed of 23 knots. On 12 February 2018, EMC announced that it had signed a long term charter agreement for twelve neo-panamax containerships with Shoei Kisen, the ship financing arm of the Imabari Group, which is also believed to build the ships. The vessels will be delivered from 3Q 2020 to Q The ships will be chartered by Greencompass Marine S.A. (six units) and Evergreen Marine (Hong Kong) Ltd (six units). Rated at 11,850 teu, they have similar dimensions as the eight Samsung units. The 20 ships form Evergreen s renewed newbuilding program that was first announced on 12 January in a stock exchange filing in Taiwan. Evergreen said at that time that it will choose between five candidate shipyards to build the ships at a cost expected at between $93M and 100M. The shortlisted yards were CSBC of Taiwan, Imabari and JMU of Japan, and Samsung and Hyundai HI of South Korea. Fleet and Orderbook in TEU Millions Further to the orders announced by the two Taiwanese carriers, Maersk confirmed that it exercised, in late 2017, options to build an additional two 15,282 teu ships at Hyundai Heavy Industries of South Korea. Scheduled for delivery in the first quarter of 2019, the twins will add to nine similar units ordered in The two recent orders come on top of Maersk Line s 18-strong orderbook which, among other ships, still includes three 15,282 H-class vessels and four 20,568 teu EEE-Mk-II Megamax ships. All of these are scheduled for delivery this year. According to Maersk, the two extra ships will help meet increased demand and form part of the ongoing network optimisations. The aforementioned orders add to fleet expansion programs of MSC and CMA CGM who late in 2018 committed to eleven and, respectively, nine next-generation Megamax ULCS of 22,000-23,000 teu. This recent activity has brought the total containership orderbook to over 2.8 Mteu, or 13.2% of the existing fleet in slot capacity terms. The orderbook-to-fleet ratio had fallen to only 12.4% in August last year - an all-time low that came about after a long hiatus of fresh orders since the end of This downward trend now looks set to be reversed as carriers eye fresh fleet renewal programs for 2020, when new SOx and ballast water management rules are due to come into effect. In addition to current ordering activity, Hyundai Merchant Marine is expected to announce orders for up to 20 new ships of 14,000 and 23,000 teu. The South Korean carrier will likely receive financial support from its national government for this newbuilding move ALPHALINER Containership Orderbook to Fleet Ratio 70% 60% 50% 40% 30% 20% 10% Orderbook-to-Fleet Ratio Existing Fleet Orderbook Orderbook-to-Fleet Ratio 0% Page 2 Copyright Alphaliner

3 IDLE FLEET UPDATES Idle fleet falls below 1% Idle containerships > 500 TEU As at 5 February 2018 Breakdown by Size Range TEU Range Units idle Trend of which, NOO Units % teu % 1,000-1, % 2,000-2, % 3,000-5, % 5,100-7, % 7,500-12, % 12,500 & over 2 0 0% Total units idle % Total TEU idle 191, ,355 62% Idle TEU as % of total fleet 0.9% The idle containership fleet has dropped sharply within the past fortnight as carriers rushed to add capacity to take advantage of the high pre-lunar New Year holiday demand in the Far East. The idle fleet of above 500 teu stood at only 65 ships for 191,441 teu as at 5 February, accounting for 0.9% of the total containership fleet. A rapid increase in the active fleet, due to the twin effects of the reactivation of the idle fleet and a record number of new ships delivered so far this year, has pushed up the overall active fleet by 760,000 teu since November last year. This very high rate of capacity growth has already had an impact on freight rates, with the SCFI spot rates losing some ground. As per 9 February, the composite index had fallen from 884 to 872 points, as shippers faced no capacity shortage during the run-up to the Lunar New Year holidays. Number of ships idle Idle ships distribution as at 5 Feb 2018 ALPHALINER TEU Size Range NOO & other in limbo NOO vessels laid up NOO vessels spot NOO vessels with employment secured Carrier controlled (owned & chartered) Idle capacity in TEU The idle fleet is set to rise in the next three weeks as carriers implement void sailings in the Far East during the post-holiday period. However, with a flurry of new service launches and capacity upgrades already announced to take effect from March and April, immediately after the holidays in the Far East, the market is poised to see further capacity injections. The uncertainty over the demand outlook in the face of the large increase in vessel supply could see further freight rate turbulence during this period. 1,600,000 1,400,000 1,200,000 1,000, , , , , Idle containership capacity as % of total fleet 2012 ALPHALINER Total Idle TEU Idle fleet as % of total fleet ALPHALINER % 12% 10% 8% 6% 4% 2% 0% Idle fleet as % of total fleet Page 3 Copyright Alphaliner

4 CHARTER MARKET UPDATES Charter market in for another push after Lunar New Year Charter Rate $/day ,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Jan-16 0 Jan-12 Jan-13 Daily Charter by TEU Size 8,500 teu 5,600 teu 4,000 teu 2,500 teu 1,700 teu 1,000 teu Alphaliner Charter Rates Jan-14 Rates Jan-15 Jan-16 Jan 18 $/day ALPHALINER Jan-17 Feb 18 $/day 8,500 teu 12,250 14,500 5,600 teu 11,500 13,000 4,000 teu (Panamax) 9,000 10,000 2,500 teu 9,250 9,500 1,700 teu 9,200 9,250 1,000 teu 6,700 6,800 Available NOO ships > 4,000 teu Apr Oct-16 Jan-17 Apr-17 Jan-18 ALPHALINER -17 Oct-17 VLCS 7,500-10,000 teu LCS : 5,300-7,500 teu Panamax : 4,000-5,300 teu Jan-18 Container vessel owners are confident that the Charter Market will maintain its positive momentum after the Lunar New Year, with an expected push in demand which, considering the low availability of spot tonnage, should result in strengthening charter rates. For now, the activity is lower than what was observed in January, but this has to do, in part, with the lack of prompt ships, while the upcoming festivities in Asia are playing their part too, with a reduced demand for tonnage. Charter rates are currently mainly progressing for high specification units, with a number of fixtures recently concluded at substantially improving levels. Meanwhile, more conventional ships have yet to see any major rate recovery. Supply getting tight in the VLCS segment The availability of spot tonnage continues to recede in the handy VLCS segment (7,500-11,000 teu) with only two ships in spot position according to Alphaliner, versus four units in our last count. There are no ships available in the Atlantic. Seven vessels of 8,000-8,500 teu are possibly coming up for employment by early-mid March. The market has seen some charter extensions of 8,500 teu tonnage, as well as an option declared on a 10,000 teu unit. A conventional 8,200 teu vessel was meanwhile able to secure a charter at a substantially improving rate over previous fixtures of equivalent tonnage, allowing to reduce the still sizeable gap with modern, fuel efficient Bosphorus Max neo-panamax units. Availability of LCS tonnage remains thin on the ground Spot tonnage remains low in the LCS segment (5,300-7,499 teu) with only three ships currently seeking employment. Two modern wide beam units of 6,800 teu are available in Asia but should be able to find a new home soon, considering their attractive specifications. Two ships of this type have actually just secured new charters at US$20,000 per day, in line with recent fixtures of comparable ships. Otherwise, four conventional vessels of 6,000-7,000 teu are possibly coming up for employment by early-mid March, all in Asia. LCS wide-beams are sold out The LCS wide-beam segment (4,300-5,400 teu) is sold out, with no ships in spot position and, according to Alphaliner, no such vessels expected to come up for employment in the next few weeks. Assuming demand continues for this tonnage, the next fixtures are expected to be concluded at improving charter rates. Page 4 Copyright Alphaliner

5 CHARTER MARKET UPDATES Jan-16 Available NOO ships < 4,000 teu Mar-16 May Sep-16 Nov-16 Jan-17 Mar-17 May-17 ALPHALINER -17 Sep-17 Nov-17 HERMES ARROW (2,478 teu) to become orange juice carrier Jan-18 3,000-3,900 teu 2,700-2,999 teu 2,000-2,700 teu 1,500-1,900 teu 1,000-1,250 teu The HERMES ARROW at Rotterdam Photo: J. Hansen In what could be called an unusual project, the 2,478 teu cellular container vessel HERMES AR- ROW (VWS 2500) owned by Antwerp-based Compagnie Maritime Belge (CMB) has been sold to Brazil s Citrosuco Group, to be converted into a frozen concentrate orange juice carrier (FCOJ). The vessel has been renamed CITRUS VITA BRA- SIL for Citrus Vita Brasil Shipping Co, a Citrovita outfit part of the Brazilian Citrosuco group. The HERMES ARROW was built by Germany s Volkswerft Stralsund yard in She features a deadweight of 34,900 tons, an Loa of m and a beam of m. She is equipped with three cranes of 45 tons. Citrosuco was founded in It is 100% Brazilian -owned. After merging with Brazil s other major orange juice company Citrovita in 2010, Citrosuco became one of the world s largest orange juice companies. The group is involved in all the stages of the orange juice production chain, from the fruit collection through to the final delivery to customers. Its worldwide sea logistics is supported by a fleet of five dedicated orange juice carriers of which four purpose-built units, the 43,000 tdw CARLOS FISCHER and PREMIUM DO BRASIL, the 19,500 tdw OURO DO BRASIL and SOL DO BRASIL, and a multi-cargo vessel, the 46,900 dwt ARACARI ARROW. These ships carry FCOJ from Brazil (Santos) to Citrosuco s major markets in the USA and Europe. Supply of Classic Panamaxes remains tight but rates stall The supply of tonnage in the classic panamax segment (4,000-5,299 teu) remains low with only four ships currently in spot position, whilst another three vessels remain in lay-up in South East Asia after one vessel, the 4,923 teu NEW JERSEY, was recently sold for demolition. Two ships are available in the Atlantic. Some fresh demand has appeared in both the Atlantic and Asia, but the majority of deals concluded were for charter extensions. Charter rates are progressing only modestly, with most deals now being concluded at around US$9,000 per day, versus US$8,500-9,000 in our last review. The sluggish rate rise may have to do with the possible upcoming redelivery of a dozen units by early-mid March. One high reefer vessel was however able to obtain a rate in the high US$11,000 in the Atlantic. 3,000-3,800 teu segment busy but rates disappoint The 3,000-3,800 teu segment has been quite busy lately, but the majority of deals concluded were for charter extensions. Charter rates vary substantially from high US$8,000 in the Atlantic up to high US$9,000 in Asia, with the best figures being achievable in the Indian Sub-Continent and Middle East areas. The continued uninspiring level of charter rates is frustrating for owners, considering that only two ships are currently in spot position in this segment. The competition of the bigger, and comparatively cheaper classic panamaxes continues to weigh on this segment. Only a rate take-off for classic panamaxes would see the 3,000-3,800 teu units finally achieve more lucrative rate levels. High activity in the 2,700-2,900 teu sizes Activity has been sustained in the 2,700-2,900 teu sizes, with a number of fresh enquiries appearing for both gearless and geared units, in both the Atlantic and Asian basins. This good demand is however having very little impact on charter rates which tend to stagnate. This is disappointing for owners considering that only three ships are currently in spot position. However, the supply might rise somewhat going forward, with up to eight vessels, including MARIC 2700 tonnage possibly coming up for employment by early-mid March. For the time being rates continue to hover around US$9,000 per day in Asia for Mipos 2800 and US$9,500 for the Aker CS 2700 type. Activity in 2,000-2,600 teu segment limited by lack of ships Activity has been slow in the 2,000-2,600 teu sizes, mainly as a re- Page 5 Copyright Alphaliner

6 CHARTER MARKET UPDATES New benchmark for the SDARI 2100 type Sinokor has fixed the 2,190 teu BARRY TRADER ('SDARI 2100') for months at a rate of US$14,900 per day. This is the highest rate ever paid for this type of ships, based on Alphaliner records, beating the previous high of US$13,850 concluded for sister vessels during a charter market peak in the spring The Sinokor fixture is a strong signal that high-specifications ships might be on their way to ultimately obtain the rates they deserve, considering the value they bring to charterers. Given the ship s Chittagong Max characteristics, it is likely that the vessel will be deployed by Sinokor on its new Korea-China-Bangladesh (Chittagong) KCB weekly service due to be launched this month, in co-operation with HMM. The BARRY TRADER is owned by London-based Lomar Shipping. She was built by China s Guangzhou Wenchong Shipyard in She was the lead vessel in a series of 20 ships of the SDARI 2100 type that have been built so far for various owners, with two more ships due for delivery this year. The BARRY TRADER is a fuel-efficient vessel with Chittagong Max dimensions. She features a deadweight of 25,294 tons, an Loa 185 m and a beam of 30 m. She is equipped with three cranes of 45 tons and is fitted with 490 reefer plugs for 40 ft containers. Transinsular fixes 1,300 teu vessel Portuguese container carrier Transinsular has fixed the 1,338 teu POCAHONTAS ('MRC 1100' type - ex BOMAR REGENT) for 3-5 months at US$9,100 per day. Based on Alphaliner records, the POCA- HONTAS is the largest container vessel ever chartered by Transinsular for a period employment, the Portuguese carrier usually operating substantially smaller vessels of teu on its network. The POCAHONTAS is joining this week Transinsular s Portugal-Canary Islands-Cape Verde Africa Expresso fortnightly service. Transinsular is likely targeting perishable cargoes with this vessel which offers a capacity of 449 reefer plugs for 40 ft containers. The POCAHONTAS was built in 2007 by China s Jiangsu Yangzijiang shipyard, originally as the RICKMERS CHINA, for Hamburg-based Rickmers Reederei. She was purchased by her present owner, London-based Borealis Maritime, in early She features a deadweight of 17,350 tons, an Loa of m and a beam of 25 m. She is equipped with two cranes of 45 tons. She belongs to the MRC 1100 type, of which 20 ships were built from 2005 to Transinsular operates a network of container services connecting Portugal to Madeira, the Azores, Cape Verde and Mauritania. It owns a fleet a five small container vessels operated under Portuguese flag, the MONTE BRASIL (636 teu), MONTE DA GUIA (636 teu), INSULAR (625 teu), PONTA DO SOL (380 teu) and LAGOA (375 teu). It is also currently chartering a 862 teu vessel, the PASSAT (Sietas Typ 168). Transinsular is part of the Portuguese ETE Group, with interests in shipping, port operations, ship agency, logistics, engineering and inland waterways. sult of a limited supply of spot tonnage, with only two ships currently seeking employment as per Alphaliner records. The supply could however build up somewhat, with up to ten ships possibly coming up for employment by early-mid March, about half of which in the Atlantic. This might explain the current relative stagnation of charter rates, at least for conventional vessels. By contrast, high-end ships are increasingly being valued by charterers, with an Asian carrier agreeing to pay close to US$15,000 per day for a fuel-efficient, Chittagong Max SDARI 2100, the highest level seen so far for this type of ships (see side bar). Rates continue to rise in busy 1,500-1,900 teu segment The 1,500-1,900 teu segment remains quite active with a number of charter extensions, and at least four new enquiries for medium term charters hitting the market. The supply of spot tonnage remains meanwhile quite tight, with only two ships in spot position. Charter rates continue to progress for both conventional and higher-end units, although the latter category seems to better profit from the rate rise. Illustrating this, modern, fuel-efficient Bangkok Max tonnage such as Wenchong Mark II and CV Neptun 1700 types are seeing their rates reaching new benchmarks, with the former now achieving US$11,500 per day, and the latter, US$12,000. Rates keep a positive momentum in the 1,250-1,499 teu sizes The availability of tonnage remains low in the 1,250-1,499 teu segment, with only three ships currently in spot position. The Atlantic is sold out. Only a handful of ships are expected to come open in the next few weeks, which should maintain charter rates on a positive course, especially for the higher-end vessels. In the European Atlantic, a 'MRC 1100' was fixed at US$9,100 per day for trading between Portugal and West Africa, marking a further improvement for this type of tonnage in this region (see sidebar) Rates keep rising in the 1,000-1,250 teu bracket, but supply on the rise Charter rates keep rising in the 1,000-1,250 teu segment with most ships, including the conventional ones, finally profiting from the rally. However, the supply of tonnage is slightly on the rise especially in Asia, with six ships open for employment and another ten becoming potentially available by early-mid March. Meanwhile, owners are enjoying more lucrative rates. Illustrating this, a 4-stroke engine 'CV 1100' was fixed in Asia at US$6,800 per day. This is up nearly US$500 over an earlier fixture of a sister vessel. A Hakata 1000 type was fixed at US$7,500, whilst Page 6 Copyright Alphaliner

7 CHARTER MARKET UPDATES above: The PREMIUM DO BRASIL is an orange juice tanker. The ship is actually fitted with sockets on its otherwise flush deck to carry (light or empty) containers or opportunistic mpp cargo. Now, a project has been launched to convert a mid-sized container ship into an orange juice tanker! Read more about this on page 5. Photo: Polarny Ship Design earlier fixtures of sister vessels were typically concluded in the midhigh US$6,000. Fuel-efficient tonnage is also profiting from the better environment, with a gearless, 1,000 teu Daesun securing a charter extension in Asia at US$8,000 per day, largely beating the previous benchmark of US$7,600. Spot tonnage is nearly sold out under 1,000 teu This segment continues to surprise, with the availability of spot tonnage being close to zero. According to Alphaliner only one ship is now available on a spot basis between 800 and 999 teu and five ships between 500 and 799 teu. The tight supply has prompted the reactivation in Asia of two teu vessels which had been in prolonged lay up (during five years for one of them). Both the Atlantic and Asian markets have seen fairly dynamic demand in recent months, leading to a virtual dearth of tonnage. This is quite remarkable, especially for the smaller units, which, until only a few months ago were finding it hard to secure even a short employment with a container line. The sale of numerous smaller ships to liner companies has also contributed to helping the sector with, as a logical consequence, fewer ships available for the charter market. Representative Fixtures Vessel Teu Reefer Gear Design Year Charterer Charter Duration Rate Area E.R. TIANPING 8, N Hyundai Zim ext 6 mths USD 15,500 Asia DAL KAROO (1) 6, N Hyundai 6600 W 2013 Hapag-Lloyd new 12 mths USD 20,000 Atlantic BLANDINE (2) 5, N Venus 2009 COSCO Shipping ext 5-6 mths USD 11,750 Atlantic SEASPAN SANTOS 4, N Samsung CMA CGM ext 6-9 mths USD 9,000 Asia POHORJE 4, N CSBC Nile Dutch new 6-8 mths USD 9,000 Atlantic LYME BAY 3, N Sungdong Maersk Line ext 5-7 mths USD 9,500 Asia ADELHEID-S. 3, N Hanjin MSC ext 6 mths USD 8,700 Atlantic VALERIE SCHULTE 2, N Mipo Wan Hai Lines new 2-4 mths USD 9,000 Asia ISAO 2, N Aker CS Sinotrans ext 6-8 mths USD 9,500 Asia BANAK (2) 2, Y YZJ CMA CGM ext 9-12 mths USD 10,500 Atlantic FS IPANEMA 1, Y Kouan King Ocean ext 6-7 mths USD 9,800 Americas NORDLEOPARD 1, Y CV Neptun Rizhao Haitong new 5-7 mths USD 12,000 Asia HANSA FRESENBURG 1, N Wenchong TS Lines new 6 mths USD 9,250 Asia ARCA 1, Y Hanjin MCC Transport ext 4-6 mths USD 9,800 Asia KUO LUNG 1, N CSBC Sinotrans ext 4-7 mths USD 8,900 Asia CAPE FLORES 1, N Peene 1100L 2005 COSCO Shipping ext 6 mths USD 8,500 Asia PANJA BHUM (4) 1, N CV Asean Seas Line new 4-8 mths USD 7,200 Asia MAX CENTAUR 1, Y CV EAS Datong ext 4-6 mths USD 6,800 Asia MARCLIFF (3) 1, N Daesun TS Lines ext 3-5 mths USD 8,000 Asia CONTSHIP BOX N Zhejiang Hyundai M.M. ext 3-7 mths USD 5,100 Asia (1) Wide-beam, fuel-efficient - (2) High-reefer capacity vessel - (3) Eco design - (4) Two-stroke engine Selected fixtures only - Full list available through online subscription - Contact us at commercial@alphaliner.com for details Page 7 Copyright Alphaliner

8 SERVICE UPDATES MSC, ONE, Hapag-Lloyd and HMM unveil co-operation on Far East - WCSA trade MSC/ONE/H-L/HMM : FE-WCSA Services Details FE-WCSA services (from April 2018) Loop 1 : 11 x TBN Loop 2 : 12 x TBN Loop 3 : 11 x TBN Loop 1 : Keelung, Hong Kong, Yantian, Ningbo, Shanghai, Busan, Manzanillo (Mex), Lazaro Cardenas, Callao, Iquique, Antofagasta/Puerto Angamos (alternate), Valparaiso, Coronel, Valparaiso, Keelung Loop 2 : Shanghai, Xiamen, Shekou, Hong Kong, Ningbo, Busan, Manzanillo, Lazaro Cardenas, Balboa, Buenaventura, Callao, San Antonio, Coronel, Lirquen, San Antonio, Antofagasta, Callao, Lazaro Cardenas, Manzanillo (Mex), Yokohama, Busan, Shanghai. Loop 3 : Ningbo, Shanghai, Qingdao, Busan, Yokohama, Enseñada, Manzanillo (Mex), Puerto Quetzal, Balboa, Buenaventura, Callao, Guayaquil, Buenaventura, Balboa, Lazaro Cardenas, Manzanillo (Mex), Enseñada, Yokohama, Busan, Ningbo MSC, ONE (Ocean Network Express), Hapag-Lloyd and HMM will jointly operate from 1 April 2018 a Vessel Sharing Agreement (VSA) offering three weekly loops on the Far East - Mexico - WCSA trade, replacing for MSC, Hapag-Lloyd and HMM a set of three services currently provided in partnership with CMA CGM, COSCO and Hamburg Süd ('Loop 1'/'Loop 2'/'Loop 3') and for ONE, a Far East - WCSA service, currently operated by its three founding members, NYK, MOL and K Line, under the respective brands of ALX/CWL/Andes Main. The new service offering to be provided by MSC, ONE, Hapag-Lloyd and HMM will consist in three weekly services, expected to use a total of over 30 container vessels of 9,000-13,000 teu. The planned services will stand as follows, as per the latest version which remains subject to change : Loop 1 - Branded 'Inca' by MSC, 'AN1/ANDEX 1' by Hapag-Lloyd, 'ALX 1' by ONE and 'NW1' by HMM - Rotation : Keelung, Hong Kong, Yantian, Ningbo, Shanghai, Busan, Manzanillo (Mex), Lazaro Cardenas, Callao, Iquique, Antofagasta/Puerto Angamos (alternate), Valparaiso, Coronel, Valparaiso, Keelung. Loop 2 - Branded 'Andes' by MSC, 'AN2/ANDEX 2' by Hapag-Lloyd, 'ALX 2' by ONE and 'NW2' by HMM - Rotation : Shanghai, Xiamen, Shekou, Hong Kong, Ningbo, Busan, Manzanillo, Lazaro Cardenas, Balboa, Buenaventura, Callao, San Antonio, Coronel, Lirquen, San Antonio, Antofagasta, Callao, Lazaro Cardenas, Manzanillo (Mex), Yokohama, Busan, Shanghai. Loop 3 - Branded 'Aztec' by MSC, 'TPM/Asia Mexico Express' by Hapag-Lloyd, 'ALX 3' by ONE and 'NW3' by HMM - Rotation : Ningbo, Shanghai, Qingdao, Busan, Yokohama, Enseñada, Manzanillo (Mex), Puerto Quetzal, Balboa, Buenaventura, Callao, Guayaquil, Buenaventura, Balboa, Lazaro Cardenas, Manzanillo (Mex), Enseñada, Yokohama, Busan, Ningbo. This trade shake-up has been triggered by the takeover of Hamburg Süd by Maersk Line, with Chinese and Korean competition authorities constraining the German carrier to terminate vessel sharing agreements on a number of routes, including on the Far East - WCSA trade. Hamburg Süd has meanwhile announced a new Far East - WCSA offering, which will be based on its parent s existing network on the trade. continues on next page... The two remaining partners on the to be dissolved Far East - WCSA arrangement, CMA CGM (with sister company APL) and COSCO Shipping, will launch a rival two-loop Far East - WCSA service, with details to be announced shortly. Page 8 Copyright Alphaliner

9 SERVICE UPDATES...continued from previous page THE Alliance/Wan Hai : AR1 Service Details Asia-Red Sea 1 (New from April 2018) 7 x 4,200-5,000 teu Busan, Shanghai, Ningbo, Shekou, Singapore, Port Kelang, Jeddah, Sokhna, Aqaba, Jeddah, Singapore, Ningbo, Busan, Shanghai Of note, COSCO Shipping already offers two other Far East - WCSA weekly services jointly with Evergreen, Wan Hai, PIL and Yang Ming ('WSA'/'WSA 2'). COSCO Shipping retook the COSCO Container Line participation in the 'WSA' and 'WSA2' in March 2016 when the businesses of COSCO and CSCL were merged while it inherited the CSCL participation on the VSA with CMA CGM and Hamburg Süd. Wan Hai and THE Alliance to launch new Far East - Red Sea service Wan Hai will expand its global service network to once again include the Red Sea. The carrier has entered into an agreement with THE Alliance members (Hapag-Lloyd, ONE and Yang Ming) to launch a new direct service between the Far East and the Red Sea in April. The new service, to be marketed as 'AR1' by the four partners, will turn in seven weeks using seven ships of 4,800 teu, of which six ships operated by THE Alliance partners and one by Wan Hai. It will cover the ports of Busan, Shanghai, Ningbo, Shekou, Singapore, Port Kelang, Jeddah, Sokhna, Aqaba, Jeddah, Singapore, Ningbo, Busan, Shanghai. The inaugural sailing is planned on 6 April from Busan. The 'AR1' marks Wan Hai s return to the Far East-Red Sea trade after nine years of absence. The shipping line s previous foray into the trade dates back to 2007 when it set up the China-Red Sea (CRS) service together with Hapag-Lloyd. This service was eventually suspended in early The 'AR1' is a new addition to THE Alliance network-wide restructuring in April, coming on top of the service network revision unveiled in December last year. It will be first THE Alliance loop dedicated to the Far East - Red Sea trade. So far, the carrier group has been serving this route through wayporting in Jeddah with its Far East - Europe services, with transhipments organized separately by each of the partners to/from other Red Sea ports. However, Yang Ming, a member of THE Alliance, separately operates a direct Far East - Red Sea service jointly with PIL and COSCO (RSS/ RES3). This latter service will come to an end in April concurrently to the plan by OCEAN Alliance (CMA CGM - APL, COSCO Shipping, Evergreen, OOCL) and PIL to streamline their Far East - Red Sea offering with only two loops using 12,000-14,000 teu ships, from three existing loops using smaller ships of 6,000-12,000 teu currently. Page 9 Copyright Alphaliner

10 SERVICE UPDATES THE Alliance names South China hubs THE Alliance carriers (Hapag-Lloyd, ONE and Yang Ming) have named the South China hub ports for their revised 2018 joint service network, as they lift some uncertainties in the final port rotations of their new services that were first unveiled on 18 December However, the final selection of their South East Asia hub ports remains to be announced. The affected services calling at South China are as follows: The final selection of THE Alliance s South China gateway hubs shows no significant changes to the carriers current South China port calls except for the replacement of Yantian by Shekou on all three of their Far East- Med strings. Today s single call at Dachan Bay, part of the transpacific PS4 service, is dropped altogether. Far East-North Europe services FE2 : Southampton, Le Havre, Hamburg, Rotterdam, Jebel Ali, Hong Kong, Xingang, Qingdao, Shanghai, Ningbo, Hong Kong, Yantian (unchanged from current), (SEA hub TBA - currently Singapore), Southampton FE3 : Rotterdam, Hamburg, Antwerp, Le Havre, London-Gateway, (SEA hub TBA - currently Singapore), Hong Kong, Xiamen, Kaohsiung, Yantian (unchanged from current), Rotterdam FE4 : Rotterdam, Hamburg, Antwerp, Southampton, Yantian (retained while Shekou call is dropped), Shanghai, Busan, Ningbo, Shanghai, Rotterdam Far East-Mediterranean services MD1 : Barcelona, Valencia, Tangier, Damietta, (SEA hub TBA - currently Singapore), Hong Kong, Qingdao, Busan, Shanghai, Ningbo, Shekou (replacing Yantian), (SEA hub TBA - currently Singapore), Damietta, Barcelona MD2 : Genoa, La Spezia, Fos, Piraeus, (SEA hub TBA - currently Singapore), Hong Kong, Busan, Qingdao, Ningbo, Shanghai, Kaohsiung, Shekou (replacing Yantian), (SEA hub TBA - currently Singapore), Piraeus, Genoa MD3 : Ashdod, Ambarli, Izmit, Izmir, Mersin, Jeddah, (SEA hub TBA - currently Singapore), Kaohsiung, Busan, Shanghai, Ningbo, Shekou (replacing Yantian), (SEA hub TBA - currently Singapore), Jeddah, Ashdod continues on next page... Far East-Middle East services AGX : Busan, Qingdao, Shanghai, Ningbo, Shekou (unchanged from current), (SEA hub TBA - currently Singapore), Jebel Ali, Jubail, Dammam, Abu Dhabi, Jebel Ali, (SEA hub TBA - currently calls both Port Kelang and Singapore), Ningbo, Busan AGX2: Shanghai, Ningbo, Kaohsiung, Xiamen, Shekou (unchanged from current), (SEA hub TBA - currently Port Kelang), Jebel Ali, Doha (Hamad), Umm Qasr, Jebel Ali, (SEA hub TBA - currently Port Kelang), Kaohsiung, Shanghai Page 10 Copyright Alphaliner

11 SERVICE UPDATES...continued from previous page Transpacific services - West Coast PN2 : Laem Chabang, Cai Mep, Kaohsiung, Yantian (unchanged from current), Tacoma, Vancouver, Tokyo, Kobe, Kaohsiung, (SEA hub TBA - currently Singapore), Laem Chabang PN3 : Hong Kong, Yantian (unchanged from current), Ningbo, Shanghai, Busan, Vancouver, Seattle, Busan, Hong Kong PS3 : Laem Chabang, Cai Mep, Los Angeles, Oakland, Busan, Shanghai, Ningbo, Shekou (new call), (SEA hub TBA - currently calls both Port Kelang and Singapore), Nhava Sheva, Pipavav, Colombo, (SEA hub TBA - currently calls both Port Kelang and Singapore), Laem Chabang PS4 : Hong Kong, Yantian (retained while Dachan Bay is dropped), Kaohsiung, Keelung, Los Angeles, Oakland, Keelung, Kaohsiung, Xiamen, Hong Kong PS7 : Hong Kong, Yantian (unchanged from current), Los Angeles, Oakland, Hong Kong H-L/HS/CMA CGM : Europe-ISC Service Details IOS/EPIC 1/EPIC 2 service 8 x 8,000-9,000 teu TBR 10,000 teu ships Hamburg, Antwerp, London-Gateway, Tangier, Jeddah, Khor Fakkan, Jebel Ali, Port Qasim, Nhava Sheva, Mundra, Jeddah, Tangier, Hamburg continues on next page... Transpacific services - East Coast EC3 : Kaohsiung, Xiamen, Hong Kong, Yantian (unchanged from current), Shanghai...(Pan Canal)... Manzanillo (Pan), Savannah, Jacksonville, Norfolk (Va), Manzanillo (Pan)...(Pan Canal)... Balboa, Busan, Kaohsiung EC4 : Kaohsiung, Hong Kong, Yantian (unchanged from current), Cai Mep, (SEA hub TBA - currently Singapore)...(Suez Canal)... New York, Norfolk (Va), Savannah, Charleston, New York...(Suez Canal)... (SEA hub TBA - currently Singapore), Kaohsiung Hapag-Lloyd moves larger ships to Europe-India loop Hapag-Lloyd has started to replace the four 8,004 teu sister ships it contributes to the Europe - Middle East - Indian Subcontinent joint service operated within a VSA involving Hapag-Lloyd (branding the service as 'IOS'), Hamburg Süd ('EPIC 1') and CMA CGM ('EPIC 2') with larger units of 10,000 teu. Maersk Line has recently joined as a slot taker following its acquisition of Hamburg Süd, branding the extra Europe - India connection as its ME-7. Hamburg Süd (now part of Maersk) is however expected to withdraw from the VSA later this year as this was requested by the European Commission to comply with European competition rules. CMA CGM, which currently provides one 9,300 teu vessel, is expected to replace the three Hamburg Süd 8,700-9,000 teu vessels by ships similar in size to the four units that Hapag-Lloyd is now introducing. Page 11 Copyright Alphaliner

12 SERVICE UPDATES...continued from previous page The Hapag-Lloyd chartered 10,114 teu EXPRESS ROME has joined the service last week in Jebel Ali as replacement for the 8,004 teu TUCAPEL and will be followed next week by the 9,954 teu ATHENIAN as replacement for TENO. The 8,004 teu sister ships are shifted by Hapag-Lloyd to the India-US East Coast Indamex service which is also in the process of being upgraded (see following news). above: Hapag-Lloyd s EXPRESS ROME at the brand new Bharat Mumbai Container Termminal in Nhava Sheva, India. H-L/CMA CGM/OOCL : India-USEC Service Details Indamex/IAX/IEX service 8 x 5,600-7,500 teu Photo: BMCTPL Port Qasim, Nhava Sheva (JNPT), Mundra, Damietta, New York, Norfolk, Savannah, Charleston, Port Said East, Jeddah, Port Qasim. The IOS/EPIC 1/EPIC 2 turns in eight weeks serving Hamburg, Antwerp, London-Gateway, Tanger Med, Jeddah, Khor Fakkan, Jebel Ali, Port Qasim, Nhava Sheva, Mundra, Jeddah, Tanger Med, Hamburg. Of note, this service is handled in Nhava Sheva as from this week by the new PSA Bharat Mumbai Container Terminal, which started operations earlier this month. The service called previously at the Gateway Terminal (GTI) operated by APMT in Nhava Sheva. Indamex partners start upgrade of India-USEC service Hapag-Lloyd, CMA CGM and OOCL are to upsize their joint India - US East Coast service with the replacement of the 5,600-6,750 teu ships by larger vessels of 8,000-8,100 teu. This service, wayporting in Egypt in both directions, is branded as Indamex by Hapag-Lloyd, as India America Express (IAX) by CMA CGM (including APL) and as India East Coast Express (IEX) by OOCL. Hapag-Lloyd will introduce the 8,004 teu TUCAPEL this week, displaced from the Europe-India service jointly operated by Hapag-Lloyd, Hamburg Süd and CMA CGM (see preceding news). The TUCAPEL will be followed later this month by the 8,102 teu APL ANTWERP and the 8,063 teu OOCL WASHINGTON, replacing respectively the 6,477 teu CMA CGM MAUPASSANT and the 5,610 teu OOCL-chartered SUEZ CANAL. NYK, which is the fourth vessel provider for this India-USEC loop, has so far not revealed a replacement for the 6,402 teu PRIORITY which is its sole vessel in this loop. The service will be brought in April into ONE, the new Japanese joint venture combining the container activities of NYK, MOL and K Line. The Indamex/IAX/IEX service turns in eight weeks and calls at Port Qasim, Nhava Sheva (JNPT), Mundra, Damietta, New York, Norfolk, Savannah, Charleston, Port Said East, Jeddah, Port Qasim. Page 12 Copyright Alphaliner

13 SERVICE UPDATES YM to introduce Korea-Vietnam-Thailand service Yang Ming will introduce in the first week of March a dedicated weekly service connecting directly South Korea with Vietnam and Thailand, also wayporting in Shekou on the southbound leg. YM : KVX Service Details Korea-Vietnam Express Slots on HMM Inchon, Ulsan, Busan, Shekou, Ho Chi Minh City (Cat Lai), Laem Chabang, Bangkok, Laem Chabang, Ho Chi Minh City (Cat Lai), Inchon This new service will be ensured through co-loading on the Hyundai Merchant Marine recently shortened Korea Vietnam Express (KVX) service that drops its two North China calls (Xingang and Qingdao). It now turns in three weeks using three chartered ships of 1,700 to 2,000 teu and calls at Inchon, Ulsan, Busan, Shekou, Ho Chi Minh City (Cat Lai), Laem Chabang, Bangkok, Laem Chabang, Ho Chi Minh City (Cat Lai), Inchon. The first Yang Ming sailing on the service is scheduled on 8 March from Inchon on the AISOPOS II. Yang Ming will retain the KVX appellation. The only South Korea-Vietnam direct link that Yang Ming currently offer connects Inchon and Ho Chi Minh City through its existing CT2 service, while it does not so far offer any direct link between Korea and Thailand. CNC : KVX Service Details Korea-Vietnam Express Slots on HMM Laem Chabang, Inchon, Busan (limited calls only) The KVX service will enable Yang Ming to offer shippers additional options in South Korea with the Ulsan and Busan directly connected with Vietnam while acting as Yang Ming only direct connection between Korea and Thailand. CNC to introduce another Thailand-South Korea link Cheng Lie Navigation Co (CNC part of the CMA CGM Group) will introduce in early March a direct link from Thailand to South Korea through slots on certain ports on the northbound leg of HMM Korea Vietnam Express (KVX). Cheng Lie will only participate at Laem Chabang, Inchon and Busan calls. CNC will retain the KVX appellation to market the service and its first sailing is planned on 6 March. CNC currently offers Laem Chabang export shipments to Inchon through its RNT service, ensured through slots on CT2/CHL/RNT service, jointly operated by Yang Ming, OOCL and RCL. The KVX service will double the sailing frequency between the two ports and will also add a direct link from Laem Chabang to Busan. It will also enable CNC to offer a faster transit time between Thailand and South Korea, down from the current 11 days to seven days. Of note, at the same time, Yang Ming will also start co-loading on HMM KVX service (see preceding news). Page 13 Copyright Alphaliner

14 SERVICE UPDATES CNC to offer a direct Japan-Straits service CNC : JSX Service Details Japan-Straits Express Slots on APL Yokohama, Tokyo, Nagoya, Kobe, Singapore, Port Kelang (West Port), Yokohama CNC has also announced the introduction of a dedicated weekly service that directly connects Japan main ports with the Straits. It will be ensured though co-loading on the 'Japan-Straits Express' that is operated by CNC s sister company APL within the CMA CGM Group (JSX - branded 'JPX' by CMA CGM). The other co-loaders on the service includes CMA CGM, X-Press Feeders, Interasia Line and COSCO through its subsidiary New Golden Sea Shipping. CNC will retain the JSX appellation to market the service that covers the ports of Yokohama, Tokyo, Omaezaki*, Nagoya, Kobe, Singapore, Port Kelang (West Port), Yokohama (* The Omaezaki call is only advertised by CMA CGM). The service turns in three weeks using three APL chartered ships of 2,100 to 2,600 teu. CNC first effective sailing is scheduled on 26 February from Yokohama on the VIRA BHUM. The JSX service will enable CNC to halve its current transit time offerings between Kobe (last call in Japan) and Singapore (first call in the Straits) from 14 days to seven days according to the proforma schedule. CNC currently serves Japan and Singapore/Port Kelang through transhipment connections in Hong Kong and Shekou. It will also further connect Japan with Indonesia and other Malaysia ports by way of transhipment in Singapore and Port Kelang respectively. APL to introduce another Japan-Taiwan-Thailand link APL : JTX Service Details Japan-Thailand Express Slots on CNC Tokyo, Yokohama, Shimizu, Nagoya, Osaka, Kobe, Keelung, Taichung, Kaohsiung, Hong Kong, Laem Chabang, Bangkok, Laem Chabang, Hong Kong, Kaohsiung, Keelung, Tokyo APL (CMA CGM Group) has announced the introduction of a weekly service connecting Japan with Taiwan and Thailand, also wayporting at Hong Kong, ensured through slots on the Japan - Thailand Service (JTX) of its sister company CNC. The service turns in four weeks using four ships of 1,470 to 1,750 teu. It covers the ports of Tokyo, Yokohama, Shimizu, Nagoya, Osaka, Kobe, Keelung, Taichung, Kaohsiung, Hong Kong, Laem Chabang, Bangkok (Phra Khanong), Laem Chabang, Hong Kong, Kaohsiung, Taichung*, Keelung, Tokyo (*APL does not advertise the second Taichung call). APL will retain the JTX appellation to market the service and it is scheduled to start on 27 February from Tokyo on the NORDCELOT. The JTX service will enhance APL connections between Japan, Taiwan and Thailand by offering a competitive transit time and by enabling APL to offer three weekly sailing between Japan and Taiwan and four weekly sailing between Japan and Thailand. APL currently serves the Japan-Taiwan trade using the existing JT5 service, ensured through slots on OOCL's KTX2 service, and the JT2, ensured through slots on TS Lines JHT service. For the Japan-Thailand trade, APL is currently using the two above-mentioned services and the APLoperated JTV service. Of note, at the same time, APL sister company CNC will start coloading on APL's Japan-Straits Express (JSX) (see preceding news). Page 14 Copyright Alphaliner

15 SERVICE UPDATES Evergreen introduces additional intra-asia services Evergreen : CV1 Service Details China-Vietnam 1 Slots on Wan Hai Qingdao, Xiamen, Shekou, Ho Chi Minh City... Qingdao Evergreen : CSM Service Details China Singapore Malaysia service Slots on IECX2 Shanghai, Ningbo, Hong Kong, Shekou, Singapore, Port Kelang... Shanghai X-Press : CIX3 Service Details China-India Express 3 Slots on CIX3/SCIS/CIX Shanghai, Xiamen, Hong Kong, Shekou, Nansha, Singapore, Colombo, Nhava Sheva, Pipavav, Colombo, Port Kelang, Singapore, Hong Kong, Shanghai continues on next page... Evergreen in late January introduced two additional intra-asia services. One connects China with Vietnam through slots on the relevant segments of the Wan Hai 'China-Vietnam service' (CV1). The other connects China with the Straits and is ensured through slots on certain port calls on the Far East - Straits segment of the recently launched 'India East Coast Express 2' service. This loop is jointly operated by Wan Hai, COSCO, Interasia Line, OOCL and X-Press Feeders. Evergreen will retain the CV1 appellation to market the former service and will brand the latter 'China Singapore Malaysia' service (CSM). Details as follows : On the CV1 (slots on CV1 ), Evergreen's participation will be limited to Qingdao, Xiamen, Shekou, Ho Chi Minh City... Qingdao. The full service turns in three weeks using three ships of 1,200-1,300 teu. Evergreen first sailing on the service occurred on 30 January from Qingdao on the WAN HAI 206. On the CSM (slots on the Far East - Straits segment of India East Coast Express 2 ), Evergreen's participation will be limited to Shanghai, Ningbo, Hong Kong, Shekou, Singapore, Port Kelang (W + N)... Shanghai. The full service turns in five weeks using five ships of 4,250 teu. Evergreen first sailing occurred on 7 February from Shanghai on the WAN HAI 508. The CV1 service will enhance Evergreen coverage of Ho Chi Minh City by providing new direct connections with Qingdao in North China and Xiamen in South China, while the CSM service will further increase Evergreen weekly sailing frequency between Central and South China with the South East Asia hubs of Singapore and Port Kelang. X-Press Feeders adds another direct link between China and Western India X-Press Feeders has introduced in January another direct link between China and Western India wayporting in the Straits and Sri Lanka in both directions. It is ensured through slots on a China-India jointly operated by OOCL, APL (CMA CGM Group) and Gold Star Line (GSL) under the respective appellations CIX3/SCIS/CIX. The service calls at Shanghai, Xiamen, Hong Kong, Shekou, Nansha, Singapore, Colombo, Nhava Sheva, Pipavav, Colombo, Port Kelang, Singapore, Hong Kong, Shanghai. It turns in six weeks with six ships of 8,000 to 9,300 teu, three of which operated by OOCL, two by APL and one by GSL. X-Press Feeders retains the CIX3 appellation to market the service. Page 15 Copyright Alphaliner

16 SERVICE UPDATES...continued from previous page The addition of the CIX3 service provides X-Press Feeders with four weekly sailings between China and Western India, comprising the ICX service, ensured through slots on the CIX, a joint service of Hyundai Merchant Marine and GSL, on the 'AIS' service, ensured through slots on the FIX/AIS, a joint service of KMTC, COSCO and TS Lines, and on the WIN service, jointly operated by X-Press Feeders, NYK, Hapag-Lloyd and Yang Ming. Of note, in April the WIN service will be grafted to the THE transpacific PS3 service as part of a wider network revision by THE Alliance. X-Press has yet to announce its decision regarding its participation. Maersk Line extends Gibraltar-Nigeria service to North Europe and Morocco Maersk Line and sister company Safmarine are to offer a direct North Europe - West Africa connection again by extending the Gibraltar Strait - Nigeria 'WAF 6' service to four North European ports. Maersk/Safmarine : WAF 6 Service Details WAF 6 (extended from Feb) 9 x 2,500-2,800 teu Felixstowe, Bremerhaven, Rotterdam, Antwerp, Casablanca, Tangier, Algeciras (APMT), Lagos-Apapa, Lagos- Tincan, Onne, San Pedro, Algeciras (APMT), Cartagena, Felixstowe. The rotation will be stretched from six to nine weeks to accommodate the extended coverage. Whilst the African rotation remains unchanged with calls at Lagos (both Apapa and Tincan Island), Onne and a northbound call at San Pedro (Ivory Coast), the service will start wayporting at Casablanca (southbound) and Cartagena (northbound). The extended rotation will cover Felixstowe, Bremerhaven, Rotterdam, Antwerp, Casablanca, Tanger Med, Algeciras (APMT), Lagos- Apapa, Lagos-Tincan, Onne, San Pedro, Algeciras (APMT), Cartagena, Felixstowe. The first ship to follow the revised rotation will be the 2,478 teu HSL PORTO which is expected to join the service on 21 February in Felixstowe. Nine 2,500-2,800 teu ships are to be deployed in the new WAF 6. The 'WAF 6' will continue to act as a West Africa relay service connecting at Tangier and Algeciras with the Maersk Line network. Of note Cartagena, so far served by Maersk Line/Safmarine through a third party feeder service operated by X-Press Feeders (ACX), will be now served directly by these carriers. Page 16 Copyright Alphaliner

17 SERVICE UPDATES Containerships and Viasea to join forces in the Baltic Containerships/Viasea : Baltic Service Details Klaipeda-Gdynia-Oslo service TBN TBC Helsinki-based Containerships PLC and the Norwegian shipping company Viasea are to join forces in a new weekly liner service calling at Klaipeda, Gdynia and Oslo. Although both shortsea operators announced a first sailing on Friday 5 April from Klaipeda, full details of the new connection have yet to be disclosed. Containerships, which already has a strong market position in the Baltic, will be able to add the Norwegian market to its traditional areas that include Finland, Russia and the Baltic States. Its partner Viasea was established by the Norwegian logistics provider ColliCare in the autumn of 2016 to start a regular liner service between Moerdijk (near Rotterdam) and the Oslo Fjord. NileDutch launches Angola feeder service NileDutch : WAFA Service Details West Africa Feeder Angola 1 x 1,100 teu (15 days freq.) Pointe Noire, Luanda, Lobito, Namibe, Pointe Noire NileDutch has launched this week a fortnightly feeder service focusing on Angola, branded 'West Africa Feeder Angola' (WAFA), to connect Pointe Noire and Luanda with Lobito and Namibe. CMA CGM is also slotting on this WAFA service, which is operated with the 1,118 teu CONTSHIP OAK. The launch of this Angola feeder service follows the withdrawal of the fortnightly calls at Lobito and Namibe from the rotation of the joint NileDutch-CMA CGM operated Europe-West & Central Africa WEWA/ EURAF5 service. The removal of these calls is part of a broader revamp of the service reducing total turnround time from eight to seven weeks whilst introducing direct calls at Kribi in Cameroun. The new WAFA feeder connection to Angola adds to NileDutch s other West Africa coastal feeders from Pointe Noire, maintained with a fleet totalling four 600 teu vessels : to Sao Tome, Libreville, Bata, Malabo and Douala to Matadi, Boma (on inducement) and Soyo (on inducement). to Cabinda. Page 17 Copyright Alphaliner

18 DELIVERY/VESSEL UPDATES Cellular Containership Deliveries February 2018 Name Teu Operator MAERSK HANGZHOU 15,282 Maersk MONACO BRIDGE 13,870 K Line VISTULA MAERSK 3,596 Maersk The MAERSK HANGZHOU (15,282 teu) is delivered - Two further orders added to the series APM-Maersk has received the MAERSK HANGZHOU, sixth of eleven 15,282 teu ships ordered at Hyundai Heavy Industries. The first nine ships of this series were ordered in y 2015 for delivery between mid-2017 and mid-2018, with options for up to eight additional units. APM-Maersk eventually exercised two of its options in the fourth quarter of 2017, for delivery in All ships in the series will be managed by the APM-M Group s Singapore branch and they will fly the Singapore flag. The MAERSK HANG- ZHOU follows the MAERSK HANOI, delivered in early January. SINAR PENIDA 600 Samudera Total and MOL conclude a deal for a large LNG bunkering vessel Total Marine Fuels Global Solutions (TMFGS) and Mitsui O.S.K. Lines Ltd. (MOL) have signed a long-term charter contract for a large LNG bunker vessel of 18,600 cubic meters, to be delivered in 2020 to MOL. The new 135-meter vessel will be used to refill in particular the nine future containerships of 22,500 teu of CMA CGM (the capacity of the new LNG bunkering vessel matches almost exactly the capacity of the containership LNG tanks). As planned, the ship will operate in Northern Europe and will be the first ever capable of supplying large quantities of LNG in one single bunkering operation. CMA CGM concluded in December 2017 with TMFGS a ten-year contract of 300,000 tons of LNG per annum. The bunker vessel will be built by Hudong -Zhonghua Shipbuilding in China and fitted with the Mark III membrane containment system provided by the French company GTT. It is the same containment system that will be applied on the CMA CGM new vessels (See Alphaliner Newsletter and for details on LNG technology). The bunker ship will be managed by MOL (Europe Africa) Ltd, a UK subsidiary of MOL. The MAERSK HANGZHOU proceeded last week from Korea to the Qingdao shipyard to undergo extra hull work, just like the earlier ships in the series. In terms of dimensions, the new H-type units are in a class of their own, with more compact dimensions than other ships of comparable teu intake and an Lbp to B ratio of only 6.3. At m long and m wide, the vessels feature 21 container bays and can stow 21 rows of containers on deck. With this compact footprint, the ships are one row wider than today s common standard ULCS of 14,000-15,000 teu and two rows wider than 13,000+ teu maxi-neo-panamaxes. At the same time, they are one bay shorter than both these ship classes (See pictures and details in Alphaliner Newsletter ). The MONACO BRIDGE (13,870 teu) is delivered K Line has taken in charge the 13,870 teu MONACO BRIDGE, seventh ship in the carrier s series of M-Bridge ULCS. The vessel is part of a K-Line newbuiling program that comprises ten sister vessels from Japan s Imabari Hiroshima Shipyard (formerly Koyo Dockyard). The first orders for five ships were placed in March 2013, with another five added in September All five ships of the earlier batch were delivered in 2015, while the later five sisters are all due this year. Funding for the vessels was provided by Japanese owners, including Shoei Kisen, the ship financing arm of the Imabari Group. The MONACO BRIDGE is the second unit of the second batch of five orders and follows the MILANO BRIDGE, delivered one month ago. The new container ship sailed in ballast from Japan to Xingang, Page 18 Copyright Alphaliner

19 DELIVERY/VESSEL UPDATES Cellular Containership Deliveries by month : * Feb 2018 Jan Dec Nov Oct Sep Aug Jun May Apr Mar Feb 2017 Jan Dec Nov Oct Sep Aug Jun May Apr Mar Feb 2016 Jan Dec Nov Oct Sep Aug Jun May Apr Mar Feb 2015 Jan Dec Nov Oct Sep Aug Jun May Apr Mar Feb 2014 Jan Dec Nov Oct Sep Aug Jun May Apr Mar Feb 2013 Jan TEU Delivered 25 Units Delivered * Deliveries recorded month-to-date China, to join the THE Alliance Far East - North Europe 'FE2' service. K-Line s M-Bridge series of vessels are standard ULCS with fairly typical dimensions. They measure m in length with a width of m (20 rows). While still receiving ships in its grey house colors, it must not be forgotten that K Line is about to be merged into ONE, the unified container line of the three main Japanese container carriers. The MILANO BRIDGE, on sea trials off the Japanese Coast, is a sister ship of the new MONACO BRIDGE. Photo: Imabari Group The three last units in the M-Bridge series are expected come on stream with the magenta colours of the unified Japanese carrier Ocean Network Express, and with one prefixed names. The first of these, originally earmarked to become the MINATO BRIDGE, will now be delivered as ONE MINATO. K Line s long standing practice of naming container ships with Bridge -suffixes will thus come to and end. For the time being however, traditional K Line, MOL and NYK names appear to live on in slight variations and with one-prefixes. Ocean Network Express, regrouping the container shipping activities of the three main Japanese carriers under a single umbrella, will officially take off on 1 April The SINAR PENIDA (600 teu) is delivered Indonesia-based Samudera Group has, through its subsidiary PT Perusahaan Pelayaran Panurjawan, taken delivery of the 600 teu vessel SINAR PENIDA. The ship is the second of two sisters ordered in August 2016 at Jin Jiang Nanyang Shipbuilding, a yard in China s Jiangsu Province. Samudera s two new ships were originally intended to join the group's Indonesian domestic network. In October 2017 however, Samudera decided to comply with Indonesia s prevalent maritime law and the group announced its plan to gradually withdraw own tonnage from the country s domestic routes. With her small size and her low draft of only 5.60 m, the SINAR PA- LOPO and SINAR PENIDA are well suited to serve smaller ports with shallower berths and fairways. The SINAR PENIDA is currently positioning to Singapore to join Samudera s intra-asia service network. Page 19 Copyright Alphaliner

20 PORT UPDATES ZPMC delivers cranes for new Walvis Bay Terminal ALPHALINER above: Walvis Bay s new Container Terminal is built entirely on new land, claimed from the Atlantic Ocean. It is located to the west of the current mpp, bulk and container piers. Only the inner side of the artificial peninsula serves as a berth, while the north and west sides act as an additional breakwater. below: An aerial view of the new container terminal under construction. The current piers, the railway yard and the town of Walvis Bay can be seen in the background. Photo: Namport The heavy load transport vessel ZHEN HUA 8 has arrived at Walvis Bay, delivering the port's first-ever ship-to-shore gantries. Manufactured by ZMPC of China, the new quay cranes are to be installed on Namport's new container terminal, which, after several delays is now scheduled to launch in A total of four gantry cranes, all delivered in a single shipment, will equip the pier of the new Namport Terminal in its initial state. The facility is slated to come on stream with a single 350-meter pier, which will be extended to twice that length soon after the launch. Once fully completed, the new Walvis Bay container terminal will offer an annual design capacity of at least 0.65 Mteu and it will be capable of handling large mainline ships (VLCS) with drafts of around 14 meters. The Walvis Bay port expansion is being developed by the China Harbor Engineering Company (CHEC) since The project is cofunded by the African Development Bank. Construction ran into problems some years ago, when the seabed under the terminal's pier turned out less stable than expected. The overall delay might explain why the cranes are being delivered more than a year ahead of the terminal's expected launch. Walvis Bay's current container and mpp terminal is not equipped with ship-to-shore gantries and cargo is handled by large mobile harbour cranes. The port is typically served by ships of up to 4,500 teu, but it has seen calls from ships of up to 10,000 teu on occasions. Solid 2017 Volumes - DP World expects market recovery to continue this year The container terminal and port operations giant DP World this week reported a record volume of 70.1 Mteu across its global portfolio of container handling facilities for the calendar year Gross container volumes, meaning not accounting for DPW's ownership share in the individual terminals, was up 10.1% year-on-year on a reported basis and 9.7% on a like-for-like basis. More in-depth coverage of this week s main events in the port and terminal sector can be found on our website at: Our platform also includes a vast archive with thousands of news articles related to events and developments in the global container terminal market. Like-for-like gross container volumes exclude some container throughput from portfolio additions such as Yarimca in Turkey, Saint John in Canada, Limassol in Cyprus and the Somaliland port of Berbera. DPW said that a consistent performance was achieved across all three of the group's administrative regions, with particularly strong contributions from terminals in Europe, the Americas and Middle East & Africa. The UAE handled 15.4 Mteu in 2017, up by 4.0% year- Page 20 Copyright Alphaliner

21 PORT UPDATES on-year. The vast majority of this was recorded at Dubai-Jebel Ali, where the new DPW Terminal 4 is getting ready to launch soon. HHLA: Good numbers in 2017 The German port operator, stevedore, and logistics provider Hamburger Hafen und Logistik AG (HHLA) has posted a group revenue of EUR 1.25bn in the last financial year, up 6% from EUR 1.18bn in In the same time, HHLA's operating result (EBIT) went up from EUR 164M to EUR 173M, up more than 5%. HHLA s Port Logistics subgroup generated revenue of EUR 1.22bn (vs EUR 1.15bn) and an EBIT in the amount of EUR 156M (vs EUR 148M). This includes expenses of ca, EUR 25M for 'organisational restructuring and for harmonisation of the existing pension schemes'. In total, 7.2 Mteu of containers were handled at HHLA's container terminals in the 2017 financial year. Compared to 6.7 Mteu in the previous year, this equates to an increase of 8.1%. At the three container terminals in Hamburg, container throughput increased by 8.3% to 6.9 Mteu. Throughput at the container terminal in Odessa, where HHLA is engaged through its subsidiary PHC, increased slightly by 3.4% to 0.3 Mteu. Since HHLA and its German competitor Eurogate together account for practically all container handling at Hamburg, the HHLA figures suggest that 2017 volumes at the German mainport reached about 8.6 Mteu, which - if confirmed - translates into a year-on-year loss of 3.5%. The vastly different Hamburg performance of HHLA (+8.3%) and Eurogate (-25.6%) is mostly down to one-off effects related to carrier alliance changes and to the bankruptcy of Hanjin Shipping, a prime client of Eurogate Hamburg. HHLA's Intermodal activities continued to develop successfully. With growth of 5.25%, transport volume climbed to 1.5Mteu driven by rail (1.1 Mteu) and road transport (0.4 Mteu). As Hamburg's largest service provider, HHLA is looking forward to the upcoming Elbe deepening, which finally makes progress after more than a decade during which the project was held up in court. continues on next page... At a consolidated level, meaning facilities where DPW has a controlling stake as per the definition of the IFRS, the group's terminals handled 36.5 Mteu in 2017, a 24.7% improvement in performance on a reported basis and up 6.2% year-on-year on a like-for-like 'organic' basis. Reported consolidated volume in the Asia Pacific & Indian Subcontinent region was boosted by the consolidation of Busan, South Korea, in December As far as ownership changes are concerned, it is worth recalling that DPW also recently upped its stake in the Embraport terminal at Santos, Brazil, to 100%. DP World Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem commented: 'Benefiting from the improved trading environment and market share gains, our global portfolio once again delivered ahead-of-market growth in 2017'. The Chairman and CEO added that DPW's deep-water terminals in key markets and its diversified portfolio benefited from a 'recovery in global trade'. Impairment charges bite APMT's 2017 performance APM Terminals, the Dutch-headquartered port operations branch of the Danish AP Moller-Maersk group last week reported a revenue of USD 4.1bn on a consolidated basis on a par with On an equityweighted basis container volumes grew 6.5% to reach 39.7 Mteu, up from 37.3 Mteu in the year before. Underlying profit was USD 414M, up from USD 433M, while the net result was negative USD 168M, down from a 2016 profit of USD 438M, mainly due to hefty impairment charges totalling USD 621M in what APMT calls 'commercially challenged markets'. Cash flow from operating activities was USD 827M, up from USD 819M, resulting in a positive free cash flow of USD 155M, versus a negative USD 730M in Over the course of the past year, three new terminals commenced operation in the APMT portfolio. These are located at Lazaro Cardenas on the Mexican Pacific Coast, at Nemrut Bay, a satellite port of the Turkish city Izmir (first ship handed late in 2016 with a formal launch in 2017) and at Puerto Quetzal in the Pacific Coast of Guatemala. Meanwhile APMT divested one inland service provider, the UK's Pentalver, as well as container terminals in the Belgian port of Zeebrugge and at Dalian, China. Moreover, APMT Tacoma in the USA ended operations in September. Page 21 Copyright Alphaliner

22 PORT UPDATES...continued from previous page. below: the mpp cargo vessel SYMPHONY SKY delivered the first gantry crane parts to Southampton. Photo: Andrew McAlpine DP World continues upgrade of Southampton Terminal The global port operator DP World has received the first parts for two new large ship-to-shore gantries, to be installed at its Southampton container terminal. Four years after launching the facility's new 'Megamax' berth and three years after the completion of a dredging program that widened and deepened the port fairway, DPW therewith continues its terminal upgrade program on the older berths one to four. The two new container gantries will be supplied by Liebherr. A first shipment of parts, manufactured at Liebherr's Rostock plant, on Sunday arrived in Southampton aboard the multipurpose cargo vessel SYMPHONY SKY. They are expected to become operational at the pier in mid DPW runs the only container terminal at Southampton, the United Kingdom's second largest container port. In 2016, Southampton handled a volume of just over 2.00 Mteu, up 4.25% from Container volumes for 2017 have not been reported yet. The company said that increased volumes and cost initiatives partly compensated for the start-up cost for new terminals and the impact of the cyber-attack that hit the APM Maersk Group in Revenues were negatively impacted by the loss of services in North America and lower revenue in some of the African entities due to the rate of exchange impact, which was partially offset by higher revenue in Latin America and Europe. The average port revenue per move, based on the consolidated revenue excluding construction revenue, decreased to USD 193 per move, down from USD 198 per move in 2016, mainly due to market rate pressure and the rate of exchange impact at some of the African terminals. As far as volumes are concerned, APMT said that north Asia and Latin America grew strongest, as well as a number of locations elsewhere due to strong growth from Maersk Line. Cooperation between the two was increased in September 2016 when the APM Group underwent a reorganization into two independent divisions: an integrated Transport and Logistics division, comprised of Maersk Line and APMT, and an Energy division. Average terminal utilisation based on consolidated operating terminals and adjusted for start-up effects was 66%, down from 69% in APMT said that the utilisation decline was driven by lower volumes in North America and capacity increases across various terminals, partially offset by positive volume contributions in Europe and Latin America. The group commented: 'Despite signs of stability in some markets, industry-wide market challenges and rate pressure are expected to continue in APM Terminals will continue to collaborate closely with all customers including Maersk Line in all regions, with the focus on supporting customers' needs and improving the utilisation of its facilities. With synergies from closer collaboration and additional volumes resulting from the Hamburg Süd acquisition, APM Terminals expects to deliver further volume growth in 2018'. Major terminal launches on the near-term agenda of APMT include the start of its second terminal in the Moroccan hub of Tanger Med and the launch of a new container terminal at Moin, located on the Atlantic Caribbean shores of Costa Rica. Despite imminent deliveries of the first cargo handling equipment, both of these facilities are however expected to only handle their first ships in Similarly, the new terminal at the Italian port of Vado Ligure, where APMT partners with COSCO and Qingdao Port will open in early Recent industry rumors that APMT was about to divest some of its North European portfolio were not addressed by the company and it remains to be seen if any of the locations at Rotterdam, Wilhelmshaven, Bremerhaven, Aarhus, Goteborg, or the North Eastern Baltic are actually for sale. Page 22 Copyright Alphaliner

23 PORT UPDATES right: The proposed new container terminal would be located some 50 kilometres north east of Montreal City at Contreceur. The 675 meter pier (top left on the map) would be equipped with up to eight large ship-to-shore gantries. Unlike many other projects in mainline ports, the new facility is designed to handle mid-sized ships, as vessel size limitations still apply for the St Lawrence River passge. If and when the two projects go ahead still remains to be seen, as there is considerable opposition against port development on the St Lawrence River from environmental groups. Map: Canadian Environmental Assessment Agency Montreal Port presents plan for satellite box terminal Canada's Montreal Port Authority (MPA) recently presented its container terminal project at Contrecoeur, a port on the St Lawrence River. Located some 50 kilometres north east of Montreal City, the proposed new facility aims to support the growth of the container market which totalled at a volume of 1.54 Mteu (+6.2%) in As part of the presentation, the MPA released main findings of an environmental impact assessment, which has just been made public by the Canadian Environmental Assessment Agency (CEAA). The proposed new Montreal-Contrecoeur container terminal is designed to provide capacity beyond the scope of Montreal's latest addition, the 2016-launched Viau Terminal. Once this terminal is further extended and equipped, the port of Montreal, between all its facilities, is expected to reach an annual capacity of 2.10 Mteu. In the next decade, the proposed Montreal-Contrecoeur, with a 675 meter pier and a design capacity of 1.15 Mteu, would thus further increase Montreal's annual handling capacity to 3.25 Mteu. The MPA commented: 'The additional port space that will become the Contrecoeur container terminal will make it possible to support the growth of this business segment and make the most of the economic and commercial opportunities arising from emerging markets, the Canada-European Union Comprehensive Economic and Trade Agreement and the Quebec Maritime Strategy'. In addition to Montreal's long-term expansion project, the port of Quebec last December also came forward with the proposal to develop a container terminal. The so-called Quebec Beauport would be located 250 kilometres downstream from Montreal and it presents a capital investment of CAD 400 M (USD 311M). If built, the new Quebec terminal would come with the advantage of allowing some 14 metres of vessel draft, compared to only 11 metres at Montreal. Page 23 Copyright Alphaliner