Nikolas Pateras is a legendary figure in the Greek shipping industry.
His family has a history in shipowning dating back to the 1870’s. Before the shipping market crash in 2008, he decisively sold all of his ships and returned to the market in 2010. It's worth noting that between 2008 and 2010, he served as President and shareholder of the Greek Panathinaikos Football Club.
In 2015, Pateras founded Contships Management, a shipping company. At the time, this move was seen considered a risky gamble due to the harsh market conditions. However, after several years of development, the company now operates 46 feeder container vessels, with capacities ranging from 800 to 1,500 TEUs, making it the largest independent feeder ship owner in the world, with strong ties to China. The fleet has an average age of 14 years, and the majority of these vessels are sister ships, allowing Contships to maintain operational efficiency and cost-effectiveness. The company's vision is to provide reliable, high-quality service to charterers while continuously expanding the fleet and embracing technological and environmental advancements in the shipping industry.
A Global Leader in Feeder Container Ship Ownership
Nikolas Pateras graduated from the London School of Foreign Trade and City University London. After completing his shipping studies in 1984, he served in the Greek Navy from 1984 to 1986. He chaired his family business, Pacific & Atlantic Corporation, which operated a fleet of up to 50 vessels in 2002. Pateras also served as the chairman of Panathinaikos Football Club and founded a charitable foundation dedicated to health, culture, maritime heritage, and education.
In 2015, Nikolas Pateras founded Contships, which quickly grew to become the world's largest independent container ship owner. Since the company was established, it has invested in 58 feeder container ships, and currently operates a fleet of 46 feeder container ships. Most of these ships are sister vessels, which helps optimize both operational efficiency and cost control. Pateras emphasizes the importance of maintaining a balance between these factors as Contships continues to expand its fleet and embrace advancements in green technologies.
Mastering the Shipping Cycle
Since 1993, Nikolas Pateras has been at the helm of his family business, Pacific & Atlantic Corporation (P&A). He has an exceptional ability to leverage the cyclical nature of the shipping market and maximize profits through strategic investments(asset playing). From 1994 to 2007, P&A invested in and operated 108 dry bulk vessels, with a fleet size that reached 50 ships.
Before the shipping market crash in 2008 (from 2005 to 2007), he decisively sold all of his vessels. Although this decision seemed risky at the time, it ultimately proved to be wise and successful. In 2015, he returned to the market, founded Contships, and quickly established it as the largest shipowner in the niche feeder container ship market. This move further demonstrated his strong ability to navigate shipping cycles.
When asked how he consistently makes successful investment choices in such a complex and dynamic market, Pateras explained, "Our success is rooted in a strategic approach that combines deep market analysis with an ability to act quickly and decisively. We continuously monitor market trends and economic indicators to identify opportunities.
Keen Market Insight
Pateras further elaborated on Contships' rapid growth: "Our focus on acquiring Chinese-built secondhand ships from the German market at favorable prices has been very successful. This strategy has enabled us to maintain financial stability while achieving rapid expansion. Additionally, we prioritize securing long-term charters for our vessels, which provides a stable revenue stream and mitigates the risks of market volatility."
Indeed, according to the fleet information reviewed by Xinde Marine News, most of the feeder ships Contships purchased from the secondhand market were originally owned by German shipowners. Pateras was able to seize this opportunity, thanks to his unique vision and keen market insight.
Pateras noted that the German market offered high-quality Chinese-built vessels at competitive prices, largely due to the financial and structural challenges faced by German shipowners between 2010 and 2018. This made the vessels an attractive option for fleet expansion, especially as they were refurbished to meet Contships' operational standards.
The Future of the Container Charter Market
Regarding the current market conditions, Pateras acknowledged that the container charter market has been experiencing sustained high demand and rising freight rates, driven by ongoing supply chain disruptions, post-COVID-19 economic recovery, and global geopolitical events. He predicted that while these factors may keep rates high in the short term, a market correction is likely as supply chains normalize. However, he remains optimistic about the long-term prospects of the container charter market due to the continued growth of global trade and the increasing importance of feeder ships in efficient cargo distribution.
Forward-Thinking on New Shipbuilding Plans
According to a recent report by shipping brokerage Braemar, global orders for new feeder container ships are currently far below the number of ships set to be scrapped. This situation could lead to a shortage of feeder container ships in the future.
Recently, Contships made a strategic decision to scrap its oldest container ship (Contship Pro, built in 2003, IMO: 9235622). Pateras explained, "Our decision to scrap our oldest vessel was a strategic move to highlight the need for fleet renewal within the industry. While we do not have immediate plans to scrap more vessels, we continue to advocate for the responsible management of the aging container feeder fleet to prevent market oversupply and promote environmental sustainability. We remain committed to upgrading our fleet with younger, more environmentally efficient vessels as opportunities arise."
When asked about plans for new ship acquisitions or construction, Pateras candidly revealed that he is always looking for opportunities to expand the fleet. "While our primary strategy has been to acquire secondhand vessels, we are also considering newbuildings, especially with advancements in green technologies. However, any decision to acquire or build new ships will be based on thorough market analysis and strategic alignment with our long-term goals."
The Green Future of LNG and Biofuels
Although Pateras did not reveal specific new shipbuilding plans to Xinde Marine News, he shared his views on future green fuel choices in the context of the shipping industry's comprehensive green transition.
Pateras stated, "The shipping industry is gradually transitioning towards greener practices, driven by regulatory pressures and the need to reduce carbon emissions. At Contships, we have implemented energy-saving procedures and are fully committed to this green transition. We are particularly interested in drop-in fuels such as LNG and biofuels due to their lower emissions profiles and growing availability. We are also exploring the potential of hydrogen and methanol as future fuels, though their adoption will depend on further advancements in technology and infrastructure."
However, Pateras also expressed some concerns about the green transition in the shipping industry: "As an independent feeder ship firm, our primary challenge in the green transition is balancing the cost of new technologies with operational efficiency. The uncertainty around future alternative fuel availability and infrastructure poses additional risks. Nonetheless, we are actively seeking partnerships and participating in industry initiatives to navigate these challenges effectively."
From left to right: Mr. Diamantis N. Pateras, His Excellency, the Ambassador of the People’s Republic of China, Mr. Xiao Junzheng, Contships Chairman Mr. Nikolas D. Pateras, Mr. Yu Zenggang, Chairman of PPA-COSCO Shipping, Mr. John
Close Cooperation with China
Xinde Marine News understands that several shipping companies, including COSCO Shipping, Evergreen, and Yang Ming, are key clients of Contships.
Nikolas Pateras told Xinde Marine News, "Our cooperation with Chinese companies such as COSCO, Evergreen, and Yang Ming has been highly successful and mutually beneficial. We provide reliable and flexible feeder services that align with their strategic needs, ensuring smooth cargo operations across various regions. This close working relationship benefits both parties, as we have an understanding that operational flexibility is essential, and we maintain direct communication with decision-makers to ensure open dialogue."
He also emphasized that Contships supports COSCO Shipping's investment in the Port of Piraeus, with more than 25 vessels having chosen to dry dock at the shipyards there. In May 2023, Contships received recognition from COSCO Shipping and His Excellency Ambassador Xiao Junzheng of the People's Republic of China in Greece for its long-term support of COSCO Shipping's operations in Piraeus.
When discussing future plans, Nikolas Pateras emphasized the enormous potential for further cooperation with Chinese companies. "China's strategic importance in global trade makes it a key partner for Contships. We are actively exploring opportunities to deepen our relationships and enhance our service offerings in shipping and related industries. If an investment opportunity arises, we are considering establishing an office in China to strengthen our presence in the region and expand our relationships with all Chinese financial institutions, chartering companies, shipping companies, and shipyards for both ship repair and newbuildings."
From left to right: Contships Chairman Mr. Nikolas D. Pateras, His Excellency, the Ambassador of the People's Republic of China, Mr. Xiao Junzheng
Conclusion
Nikolas Pateras shared with us his profound insights and successful experiences in the shipping industry. Through his keen market insight and precise decision-making, he has not only led Contships to become a global leader in feeder container ship ownership but also provided valuable strategic guidance for navigating future uncertainties. Pateras’s foresight and emphasis on green shipping underscore his leadership in driving the industry toward sustainable development.
Moreover, Pateras expressed a strong desire to further deepen cooperation with China. Recognizing China's vital role in global shipping and trade, he looks forward to exploring more business opportunities through closer collaboration, particularly in green shipping and new technology applications. He hopes to build stronger partnerships with Chinese shipping companies, financial institutions, and shipyards, jointly advancing innovation and sustainability in the global shipping industry. Under Pateras's leadership, the collaboration between Contships and China is poised for even greater success, injecting new vitality into the global shipping industry.
by Xinde Marine News Chen Yang
by Xinde Marine News Chen Yang
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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