2015 was driven by the cumulative impact of weakening demand trends. World Economy witnessed various disturbances in vessel demand.
Highlights:
- The first half of the year enjoyed great earnings whilst the second half suffered abrupt downtrend in earnings.
- Containership charter rates gained some traction during the year.
- Freight market proved be exigent and slowed down demand.
- Box freight market was highly volatile but on the negative side.
- The spot freight rate on the key Far East-Europe trade averaged 47% less than that of 2014.
- Liner companies with 12,000+ teu capacity carried freight over its capacity, in spite of 46 newly delivered units.
- The one-year time charter rate for a 2750 teu vessel increased from $7,850/day in January to as high as $13,500/day in Q2 2015.
- Effect of Chinese economic turbulence:
- Far East-Europe trade contracted by 4%.
- Intra-Asian volumes slowed to around 3%.
- Commodity imports into developing countries slowed down.
- Global box trade estimates a weak trend.
- The one year rate for a 2750 teu ship dropped to $6,500/day.
2015 was clearly a ‘game of two halves’ for the boxship sector. 2016 is expected to be more of a ‘waiting game’ for containership owners.
Source: Clarksons
