TradeWinds: Contships extends feeder ship sales drive with triple asset play

Nikolas Pateras-controlled firm cashes in on vessels acquired at nearly half the price

Greek container ship owner Nikolas Pateras has again demonstrated his asset play skills with
the sale of three vessels from the stable of his company Contships Management.
According to Greek shipping sources, the world’s largest independent owner of feeder vessels
of between 900 teu and 1,500 teu is raising about $27m by divesting ships acquired between
2018 and 2020 for about $15m.
In the first deal, Contships is said to have committed to sell the 1,118-teu Contship Air (built
2006) and sister ship Contship Leo (2008 built) for around $10m each to US-based Safesea
Group.
The price includes the balance of ongoing time charters at $15,000 per day, per vessel.
Contships is also selling the 1,108-teu Contship Med (built 2004).
Turkey’s Medkon Lines is understood to be acquiring the vessel for about $7m, on the basis of
charter-free delivery with its special survey and dry docking due.
As TradeWinds reported, Medkon last year purchased five Contships feeders in an en-bloc deal
worth about $37.5m.
Safesea seems to be in expansion mode.
Apart from the two Contships vessels, two months ago Safesea purchased the 3,398-teu Celsius
London (renamed Safesea Yash, built 2007) from Denmark’s Celsius Shipping for about $10m,
according to VesselsValue.

Busy on the chartering front as well

Contships’ latest sales make sense, considering the prices the company paid to acquire the
vessels.
As TradeWinds reported, Pateras bought the Contship Air in 2018 as Vega Luna from Vega
Reederei for about $6.5m.
The Contship Leo was purchased from Germany’s Harren Group five years ago, when it was
trading as CFS Paceno, at an undisclosed price.
According to VesselsValue, the ship was worth about $5.5m at the time.
In 2019, Contships tapped the Harren Group again for the Contship Med at a scrap-related
price that was even lower.
Since its establishment in 2015, Contships has acquired 59 feeder vessels and sold 20.
The ample demand for geared tonnage highlighted by Contship’s latest dealmaking is reflected
on the chartering front as well with the company clinching mid-term employment for three
units remaining in its fleet of 39 vessels.
Cosco Shipping is said to have fixed the 1,118-teu Contship Don (built 2006) for between 14
and 16 months at $15,000 per day for trading in the Caribbean.
Zim is paying $13,500 per day to fix the 1,118-teu Contship Era (built 2009) during the same
period in the Far East.
Another major chartering player, X-Press Feeders, will employ the 750-teu Contship Eco (built
2008) for between 12 and 14 months at $10,500 per day in the Mediterranean.