In this Capital Link Deep Dive Podcast episode, Mr. August Klemp , Equity Analyst at Pareto Securities SA, welcomes Mr. Moritz Fuhrmann , Co-CEO & CFO of MPC Container Ships ASA for a conversation focusing on the company’s future vision, including plans for fleet expansion, investment strategy, and the goal of maintaining a leading position in the feeder segment while fostering strategic partnerships and ensuring long-term shareholder value. They also examined the broader market context, analyzing the impact of U.S. tariffs on the container shipping sector and MPC Container Ships’ strategic positioning. Mr. Fuhrmann highlights the company’s conservative chartering approach and its ability to adapt to evolving trade patterns and potential regulatory changes.
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Tariffs and Rerouting Not Threatening Long-term Growth
The recent U.S. tariffs, some of which are suspended for 90 days, have led to short-term volatility in freight rates. However, MPCC views these developments as a rerouting opportunity rather than a threat. Historical trends suggest that trade flows adapt rather than collapse. During 2018-19 when similar tariffs were put into effect, cargo was rerouted through Southeast Asia, Mexico and Europe, and a similar pattern is emerging now. The 90-day suspension has triggered a surge in front-loaded shipments, boosting demand, while manufacturing shifts (e.g., from China to Vietnam, India) are expected to continue.
Mr. Fuhrmann argues that the proposed U.S. fees on Chinese-built vessels could further disrupt liner networks, particularly for big operators like COSCO who now rely on using their partners’ non-Chinese-built ships. Estimates suggest a 13,000 TEU ship could face approximately $9 million in additional costs per round voyage. While substantial, these costs can be absorbed across high-volume goods, though they are ultimately passed on to consumers. However, MPCC’s fleet is exempt, as the company only possesses two vessels above 4,000 TEU and both were built in South Korea. Some liners are also exploring workarounds, such as transshipment hubs in the Caribbean and more specifically Kingston in Jamaica, which could potentially increase demand for feeder vessels.
When it comes to the Red Sea crisis, there has been a 10-12% increase to container demand due to the now well-known Cape of Good Hope extended journey. While a ceasefire between the U.S. and Yemen is a step, the underlying attack in Gaza remains unresolved according to Mr. Fuhrmann. Most major liners, including Maersk and Hapag-Lloyd, continue to avoid the Red Sea, and MPCC expects the disruptions to persist through 2025. A gradual normalization in 2026 is possible, but the longer the situation lasts, the more the market absorbs the extra demand.
Supply-Side Trends: Feeder Ships vs. Megaships
The container order book reveals a divide at the moment, as megaships (>10,000 TEU) account for 40% of it, while feeders (<5,000 TEU) represent just 4-6%. This imbalance reflects liner companies’ focus on prioritizing economies of scale and investments based on new regulations in methanol/LNG vessels. Also, the cost of green fuels is easier to pass on due to higher-value cargo and pressure from brand-name shippers to decarbonize.
Nevertheless, feeder demand remains resilient yet underinvested. 97% of intra-regional trade relies on ships with less than 5,000 TEU, and this segment has historically outperformed major trade lanes. The existing feeder fleet is aging, as 25% of vessels are over 20 years old, and limited shipyard capacity means new orders won’t quickly fill the gap. Unlike past cycles, where overordering affected all sectors, the current surge is concentrated in megaships, reducing spillover risks for feeders. Moreover, the threat of larger vessels cannibalizing smaller trades appears limited due to port constraints, service frequency needs, and the strategic role of feeder networks in hub-and-spoke systems.
Conservative Chartering
Following recent divestments, MPCC’s fleet will stand at 55 vessels by mid-year, with ambitions to grow in the long run. Expansion will be driven by continuous market screening and the ability to act on attractive opportunities as they arise. The company prioritizes modernization through retrofits, achieving up to 20% efficiency gains on older vessels through hydrodynamic upgrades. Newbuilds are considered only when secured by 3-to-5-year charters to ensure minimal residual risk.
Mr. Fuhrmann noted the company’s conservative chartering strategy, with 96% coverage for 2025, 77% for 2026, and 28% for 2027. MPCC favors 2-to-3-year contracts over short-term spikes, providing earnings visibility. Their recent dividend policy adjustment includes reducing payouts from 75% to 30-50% of net profit and reflects a shift toward retaining capital for fleet growth and maintaining flexibility for distributions based on how things evolve. Since 2021, MPCC has returned over $1 billion to shareholders while actively renewing its fleet, acquiring nearly 30 vessels and selling close to 40, including less efficient tonnage. Overall, MPCC aims to solidify its role as a key tonnage provider for intra-regional trade.
About MPC
MPC Container Ships ASA (ticker code “MPCC”) is a leading container tonnage provider focusing on small to mid-size container ships. Its main activity is to own and operate a portfolio of container ships serving intra-regional trade lanes on fixed-rate charters. The Company is registered and has its business office in Oslo, Norway. For more information, please visit www.mpc-container.com.
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