Dead cat bounce or real recovery? The outlook for containership values and time charter rates.

This paper was presented at the Marine Money “Ship Finance 2000″ conference held in New York on the 20th June 2000, by George Hulse, Managing Director of Howe Robinson Sales & Purchase.

Introduction
‘Marine Money’ – Now there’s a thought to conjure with! Recent studies have shown that returns on capital in the dry bulk markets have averaged between 2-6% over the last decade. However, before anybody considers changing the name to ‘Marine No Money’, you might like to know that investment in the containership market has, on average, generated returns on capital in the region of 3-5% above those of the dry bulk sector and is on its way up. In the last 15 months average charter earnings for containerships have increased by 55% and asset values are up 35%. And importantly the outlook for containerships continues to be firm. This, in effect, is a wake up call!

This paper will address the following:
- review the development of the containership fleet
- consider the market for containerships
- analyse the implications of the changing ownership of the fleet
- and finally, answer the questions initially posed by the conference organizers

This is only an excerpt of Dead cat bounce or real recovery? The outlook for containership values and time charter rates.

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