Better than expected forward demand prospects across major and secondary tradelanes is encouraging ocean carriers back into the charter market to snap up any open tonnage.
However, according to Maersk Broker, most of the larger vessels remain ‘sold out’, with tonnage only becoming available from next spring, thereby underpinning daily hire rates.
Nonetheless, the broker reported “another fairly active week” on the containership charter market, also noted by London-based shipbroker Braemar.
Demand growth
Analysts have predicted modest demand growth of 3-4% for next year, but according to one carrier contact, there has been a “significant improvement” in his line’s six-week booking visibility forecasts throughout its network.
Indeed, the more optimistic outlook has prompted carriers to ramp up their rate restoration programmes, in particular on the Asia-North Europe trade, where several lines have announced new FAK (freight all kinds) rates of $3,000 per 40ft for 1 January, dwarfing market spot rates that had slumped to $1,000 in early December.
“The Chinese New Year (starting 10 February) obviously has an impact, but the Panama Canal and Red Sea diversions are also prompting shippers to bring forward their shipment dates to mitigate the longer transits,” one shipping line executive told The Loadstar.
December is traditionally a quiet month in the container charter market, but brokers are reporting new enquiries “almost daily”, despite the proximity to the holiday season.
One shipbroker told The Loadstar: “We don’t have much to sell at the moment, but we are doing good business with extensions to existing charters.”
“Charter rates for a standard 4,250 teu vessel are stable, and fluctuate between $16,500 and $17,000 a day,” noted Maersk Broker.
Unencumbered vessels
Although considerably lower than shipowners received during the high-demand Covid era, the current daily hire rates will still return owners a reasonable margin above operating costs, particularly for unencumbered vessels.
Several brokers report that panamax 4,000 to 5,400 teu vessels required for deployment on secondary or niche trades are still in high demand.
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Source : Loadstar
