- The market continues its robust performance from the end of 2024, with solid demand ahead of the Chinese New Year.
- Limited vessel availability above 3,000 TEU, especially for ships over 5,500 TEU, could drive rates higher through summer.
- Ongoing vessel scarcity and steady demand keep charter rates strong across most size segments.
The container charter market has entered 2025 on a high note, maintaining the robust momentum observed at the close of 2024, reports Alphaliner.
Although activity remains limited as key decision-makers gradually return to work, underlying demand continues to show strength, particularly ahead of the Chinese New Year. Vessels under negotiation or recently fixed are achieving favorable terms, highlighting a strong market.
Tonnage shortage drives up rates
A significant shortage of vessels above 3,000 TEU, especially those exceeding 5,500 TEU, is expected to persist until summer. This limited availability could further elevate charter rates if demand remains steady.
For ships below 3,000 TEU, tonnage liquidity is somewhat better, but fewer ships are becoming available in 2025 compared to 2024. This reduced supply is also likely to support healthy charter rates in smaller vessel sizes.
Geopolitical uncertainty looms
The year ahead will be heavily influenced by geopolitical factors, particularly the resolution of the Red Sea crisis and the reopening of the Suez route. A return to widespread use of the Suez route could disrupt the current favorable conditions for ship owners and carriers by reintroducing overcapacity, particularly for the largest vessels.
Newbuilding deliveries pose challenges
The market also faces the challenge of absorbing 2 MTEU of newbuilding capacity expected in 2025. Continued diversions via the Cape of Good Hope could help mitigate this influx, but a resumption of Suez traffic might complicate the process.
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Source: Alphaliner
