Container ships charter rate...

The container freight market is awash in negative sentiment on import demand, yet short-term ship charter rates remain stratospherically high.


The charter market is undeterred by the weaker sentiment across the global shipping industry and remains extremely strong,” affirmed data provider Alphaliner on Wednesday. “Charter rates continue to evolve at historic highs with, remarkably, some further gains achieved by certain sizes.” There is “a continued bonanza.”


The charter market is undeterred by the weaker sentiment across the global shipping industry and remains extremely strong,” affirmed data provider Alphaliner on Wednesday. “Charter rates continue to evolve at historic highs with, remarkably, some further gains achieved by certain sizes.” There is “a continued bonanza.”



According to Alphaliner, “The continued fall in spot rates on most major routes is obviously a concern, but they remain at historical highs for now, giving both NOOs [non-operating owners, the companies that lease ships to liners] and charterers confidence in short-term market prospects.”


For NOOs, “the short term remains bright.”


And despite medium- and long-term concerns on rising capacity given new ship deliveries in 2023-25, there are still multi-year charters being inked at very strong rates. Alphaliner reported that ocean carrier Zim (NYSE: ZIM) just chartered the 4,520-TEU, 2011-built sister ships Seaspan Chiba and Seaspan Kobe for five years at $43,000 per day.


No collapse in charter rates yet

Data from companies that track charter rates does not indicate a market collapse. On the contrary, it shows a market that’s holding at or near the high point.


Brokerage Harper Peterson & Co. publishes the Harpex index. The index (covering 700- to 8,500-TEU ships) peaked in mid-March, dipped slightly through April, held steady in May and began rising again this month. The Harpex is currently down 3% versus its peak, but still more than double its level at this time last year.


Alphaliner tracks average rates over time, estimating rates for 12-month charter durations. (These figures are assessments only, given the lack of available ships for rent and the rarity of 12-month deals.)


For 8,500-TEU container vessels, it currently assesses rates at $150,000 per day, just below the $155,000-per-day record hit in late March to mid-April. The current rate is up 114% year on year (y/y).


For 5,600-TEU ships, it puts rates at $130,000 per day. That’s the all-time high and up 110% y/y. It assesses 4,000-TEU ships at $110,000 per day, an all-time high and up 93% y/y, and 2,500-TEU ships at $76,000 per day, just below the peak of $80,000 per day in February to early May and up 105% y/y.


Alphaliner puts one-year rates for 1,700-TEU ships at $58,000 per day, near the all-time high of $62,500 per day in late February to mid-May and up 71% y/y. It estimates charter rates for 1,000-TEU container ships at $32,000 per day, down materially — 36% — from a brief high of $50,000 per day reached in early March, albeit still up 68% y/y


Source & Photo: https://www.freightwaves.com

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