Demand by leading container lines for a more sophisticated service is driving consolidation among feeder operators, according to report by a leading shipping and transport bank.DVB also predicts that average charter rates for feeder vessels next year will be similar to those of 2006.In its latest Feeder Market Outlook, the bank examines prospects for both feeder vessels of below 500 teu and feedermax vessels between 500 and 999 teu.
It is in the latter category where the action has been taking place. DVB notes that changes in European Union antitrust regulations scheduled to come into effect in October, 2008, are providing further impetus for liner company consolidation. Consequently, liner companies stand exposed to the extent that they entrust feedering to third parties. As a result, charter rates could be expected to soften somewhat over the next three to four months. “As for 2007, the average charter rates are expected to be not much different from current levels,” DVB adds.
It is in the latter category where the action has been taking place. DVB notes that changes in European Union antitrust regulations scheduled to come into effect in October, 2008, are providing further impetus for liner company consolidation. Consequently, liner companies stand exposed to the extent that they entrust feedering to third parties. As a result, charter rates could be expected to soften somewhat over the next three to four months. “As for 2007, the average charter rates are expected to be not much different from current levels,” DVB adds.