MPC Container Ships admits liquidity concerns

MPC Container Ships, owners of one of the fastest growing boxship fleets in the world in recent years, is opening dialogue with creditors as liquidity concerns arise.

The Oslo-listed company reported a net loss of $10.7m in Q1 yesterday, and admitted that following the outbreak of Covid-19, the group is experiencing significantly reduced charter rates and utilisation of its fleet, something that has strained its liquidity and its ability to be in compliance with covenants under some of its debt agreements in the short- to mid-term.

CEO Constantin Baack commented: “The rapid spread of Covid-19, the preventative measures imposed in various countries to counter the pandemic and the inevitable impacts on containerised trade of goods have lead economic conditions to deteriorate significantly compared with our expectations at the end of 2019. The severity and fluidity of the situation makes it challenging to anticipate the timing and shape of a recovery.”

In the space of just three years since it launched MPC Container Ships has built up a fleet of around 70 boxships.

The troubled financial state of many of the world’s boxship tonnage providers was the lead story in the May issue of Splash Extra, which launched yesterday. Subscription details for the monthly title are available here.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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