In this episode of Capital Link's 2026 Corporate Presentation Series, Mr. Constantin Baack, Co-CEO of MPC Container Ships ASA (OTC:MPZZF), discussed the company's strategy, market positioning, and financial performance. Mr. Baack emphasized the company's focus on intra-regional container shipping, supported by a modern, fuel-efficient fleet and a strong contracted charter backlog.

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Capital Link 2026 Corporate Presentation Series – MPC Container Ships ASA

Positioning in the Intra-Regional Segment

MPCC positions itself as the largest tonnage provider to liner companies in the sub-6,000 TEU segment. Including its newbuilding program, the fleet comprises 68 vessels with about 190,000 TEU capacity and an average age of 10-11 years. According to Mr. Baack, smaller vessels dominate the intra-regional trades, yet the fleet is aging, and the order book remains skewed towards larger ships. He highlighted favourable long-term demand dynamics driven by emerging markets, supply chain regionalization, and new trade partnerships, which create a clear imbalance between aging supply and growing demand.

A Volatile Market Environment

Mr. Baack acknowledged an environment where uncertainty remains elevated, due to geopolitical tensions, trade policies, and regulatory complexity around decarbonization. However, he stressed that elevated uncertainty does not translate into weak fundamentals, particularly for intra-regional trades. On supply and demand, he noted that container trade ended 2025 positively, with growth supported by strong Asian exports and intra-regional cargo flows. Growth is expected to moderate to around 2.5% in 2026, a slowdown rather than a correction or contraction, with a recovery anticipated in 2027.

On the supply side, forward vessel availability has declined further, reflecting limited new capacity and strong forward chartering by liners. Charter rates have eased slightly from last year's highs but remain strong by historical standards. From a longer-term supply standpoint, Mr. Baack added that the order book is heavily concentrated in the larger vessels, as smaller vessels continue to age with limited replacement capacity. He pointed out that the growth of the feeder order book is still underbuilt relative to the age profile and the replacement need, with over 900 smaller ships exceeding 20 years of age.

MPCC's Proactive Management

The company's charter backlog stands at approximately $2 billion, corresponding to around $1.3 billion in projected EBITDA. Contract coverage is about 92% of days secured for 2026. Approximately 95% of revenues are secured with top liner companies or strong cargo counterparties. He expressed confidence in liner customers' financial health, noting they are net cash, with strong balance sheets and that MPCC's average charter duration is just below four years.

On acquiring newbuildings across cycles, Mr. Baack said: "You have to invest smartly across cycles, naturally buying cheaply when the market is down, but buying at a higher point in the cycle, with a good counterparty and solid de-risking, can also be an attractive value proposition." He noted that in recent deals, approximately $850 million in CAPEX has been matched by a similar level of secured EBITDA plus scrap value, leaving the investments fully de-risked with strong charters. He added that the company might pursue a few additional transactions while also selling older vessels.

The Red Sea Impact

On the much discussed topic of the Red Sea reopening, a decisive factor for future market development, Mr. Baack notes that the vessels transiting the area are the larger container ships, implying that MPCC’s fleet of small to mid-sized vessels is not directly exposed to the security threat in the same way. The impact on his sector would therefore be indirect, a knock-on effect on feeder trades.

Disclosure: Capital Link works with MPC Container Ships ASA (OTCPK: MPZZF). This content is for informational purposes only and not intended to be investing advice. We would like to highlight that this is not an article with Capital Link's editorial. It reflects only comments made by management during the company presentation

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