- Charter rates continue rising across vessel sizes, driven by high demand and limited ship availability.
- Forward-fixing remains common, especially for large and high-spec vessels, despite caution from some carriers.
- The Shanghai Containerized Freight Index (SCFI) has surged 66% since the U.S. tariff truce but is now beginning to stabilize.
The container charter market is maintaining a robust upward trajectory, fueled by strong demand and persistent vessel shortages. Charter rates have remained elevated, particularly following the temporary pause in tariff hikes earlier this year. The limited availability of tonnage continues to put upward pressure on charter pricing across various vessel classes.
Notably, even the ‘Classic Panamax’ segment (4,000–5,299 TEU), as well as the 2,000–2,699 TEU and 1,000–1,249 TEU size ranges, are experiencing rate increases. Charterers seeking these ships are now often required to pay premiums to secure available vessels.
Forward Fixing Still Favored Despite Growing Caution
Forward-fixing—securing vessels well ahead of their availability—remains a prevailing trend, especially for larger or technologically advanced ships. However, some carriers are beginning to show more caution regarding charter durations and rates due to prevailing geopolitical tensions and policy uncertainties that cloud the mid-term outlook.
Short-Term Ship Shortages Persist
In the near term, the market is expected to continue experiencing tight vessel supply. The scarcity stems from a combination of sustained strong demand and the shrinking size of the non-operating owner (NOO) fleet. As a result, the imbalance between available tonnage and cargo demand remains a core driver of the bullish charter environment.
SCFI Surge Signals Strong Cargo Demand with Signs of Stabilization
On the cargo front, the Shanghai Containerized Freight Index (SCFI) has jumped 66% since the announcement of a 90-day pause on Trump-era tariffs in early May. This spike reflects surging trans-Pacific cargo volumes. However, as shipping capacities are gradually restored—particularly on the Pacific trade lanes, which were the most affected—the rally in spot rates appears to be easing.
Monitoring Market Movements with Alphaliner’s AXSInsights
Industry stakeholders continue to rely on platforms like Alphaliner’s AXSInsights to monitor charter market trends. The tool provides access to over a decade of historical rate data, helping players stay informed in this fast-evolving environment.
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Source: LinkedIn India
