Medcon Lines Strengthens Its Power in the Mediterranean with 'En Bloc' Acquisitions

ISTANBUL – As the global maritime markets experience a bustling start to 2026, particularly in the second-hand ship sale and purchase (S&P) market, Medcon Lines, a significant player in regional container transportation, has made a noteworthy acquisition. The company expanded its fleet with a strategic move aimed at increasing its feeder class capacity, investing approximately 34 million dollars.

Details of the Agreement and Ship Specifications

According to the report published by Carriers Chartering Corp. S.A. for the second week of 2026, Medcon Lines has added three container ships to its fleet through an agreement classified as 'En Bloc' (bulk sale). The purchased vessels are reported to be Contship Ray, Contship Vie, and Contship Ono, with their technical specifications reflecting the company's emphasis on operational flexibility.

The vessels in question were built between 2007 and 2008 at the prestigious Chinese shipyards Jinling Shipyard and Yangzhou Dayang Shipbuilding. Each of these ships has a deadweight tonnage (DWT) of approximately 13,700 and falls into the 'Feedermax' class with a carrying capacity of 1,080 to 1,118 TEU (Twenty-foot Equivalent Unit). Ships of this tonnage are considered ideal 'workhorses' for distributing cargo to ports where large mother vessels cannot dock and for providing rapid service in regional waters such as the Mediterranean and the Black Sea.

The total value of the agreement is stated to be 34 million dollars. The amount paid for these vessels, which are between 18 to 19 years old, is a concrete indicator of the strong demand for second-hand tonnage in the container market.

Market Background: Why Now?

Medcon Lines' move coincides with a period of 'overtonnage congestion' in the container market. Reports published by Banchero Costa and Intermodal emphasize that the container segment opened on a very solid footing at the beginning of 2026, with extremely limited ship supply across all sectors.

One of the primary reasons for this congestion is the ongoing geopolitical uncertainties along the Red Sea and Suez Canal routes. Suez Canal transits have decreased by 86% compared to pre-crisis levels, and the necessity for vessels to navigate around the Cape of Good Hope extends voyage times and absorbs the existing ship capacity in the market. This situation raises freight rates for carriers while also supporting second-hand ship values for shipowners.

Increased demand in the Asian market following the holiday season and forward charter agreements for modern units continue to support rates. In this environment, Medcon Lines aims to benefit immediately from rising freight revenues by focusing on second-hand vessels that can be operational right away, rather than ordering new builds and waiting until 2028 or 2029.

Strategic Positioning in the Feeder Market

Vessels in the 1,000 - 1,200 TEU range (the segment purchased by Medcon) function as the capillaries of the global supply chain. Particularly in intra-Mediterranean trade, the need for vessels of this size is vital for the distribution of cargo brought to major ports (hubs) by large line operators (Maersk, CMA CGM, etc.).

Looking at other sales reflected in the report, there is notable activity in similar segments. For example, the sale of the 3,534 TEU capacity vessel Rio Kobe, built in 2009, for 29 million dollars suggests that Medcon's 'En Bloc' agreement provides a unit cost advantage for the company, which is acquiring multiple ships.

Financial and Operational Expectations

This investment by Medcon Lines reflects the company's belief that the freight market will remain strong in the short and medium term. According to Intermodal reports, container ship charter rates (Time Charter rates) are on an upward trend. The one-year charter rate for a 1,100 TEU capacity (geared) vessel remains stable on a weekly basis but has increased by 14.5% annually, reaching daily levels of 16,034 dollars.

In light of this data, the vessels acquired by Medcon Lines appear to have a high potential for financing their costs under current market conditions and providing profitability for the company. Additionally, the demolition prices in regions such as India and Bangladesh, hovering around 400-420 $/LDT, guarantee that these vessels will provide a certain residual value even when they complete their economic lifespan.

The addition of the Contship series vessels to Medcon Lines' fleet represents not only an increase in capacity but also a critically timed commercial move in the equation of shrinking ship supply and rising freight rates.

Source: www.denizhaber.com

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