Contships (N. Pateras) sees positive outlook for feeder segment despite challenges

Nikolas D. Pateras-led Contships Logistics Corp. has a positive outlook for the feeder containership size segment, despite the challenges ahead. The owner of container feeder vessels said the feeder size segment, which is the containership size segment in which the Group operates, “continues to benefit from its essential role in maintaining regional connectivity” and “facilitating the first and last mile of the global logistics supply chain.”

The company outlined several factors for the positive outlook of the segment. The anticipated intra-regional trade growth of approximately 3% per annum, is expected to continue driving demand for feeder services, the shipowner said.

Furthermore, the combination of an aging fleet and limited newbuilding activity is expected to constrain vessel supply in the feeder segment. Notably, the orderbook for vessels below 3,000 teu represents less than 5% of the total fleet, both in terms of vessel count and teu capacity.

The increased transshipment activity and the establishment of new regional routes, particularly as alternatives to disrupted mainlane trades, may further support demand for feedering services, contributing to sustained high utilization rates and potentially elevated charter rates.

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