Charter rates for container vessels ended 2020 at 12-year highs and have shown no signs of slowing up in the succeeding weeks.

Clarksons Research said its index of boxship charter earnings finished the year up 3% compared with 2019.

This involved a staggering rebound from the Covid-19 demand shock in the spring, as demand returned.

Norwegian investment bank Fearnley Securities said on Monday there are few signs of the market stopping its strong run as demand continues to outpace supply.

All vessel segments improved earnings over the past week.

Classic panamaxes are now fixing at in excess of $25,000 on 12-month charters, with larger ships of between 6,000 teu and 9,000 teu also seeing gains.

There has been continued "high activity" in the feeder segment, with standard 1,700-teu units now pushing towards $18,000 for charters of a year, Fearnley added.

Freight rates at all-time high

On the freight rate side, the Shanghai Container Freight Index (SCFI) hit an all-time record level of 2,783 at the end of 2020, having averaged 56% more than the previous year across the 12 months, Clarksons said.

Fearnley added the rise for the SCFI in the week to 15 January was at a slower pace than in previous weeks, with the index adding 0.5%.

Transpacific rates edged up 1% on average, with Asia to Europe numbers contracting a little, following a rally which saw levels gain 40% over the past month alone.

Clarksons Research analyst Trevor Crowe said secondhand boxship prices, which had fallen in the first half, saw some sharp gains in the second half, lifting the overall price index by 14%.

Volumes recover

"Though robust capacity management by operators (blank sailings, service suspensions, idling) provided the initial support alleviating pressure on freight rates, the primary driver of the dramatic swings was the recovery in trade volumes," Crowe added.

Global box trade fell by an estimated 1.9% in teu terms over 2020, better than initially feared. But the figure does not fully capture the variations within a turbulent 12 months.

Seaborne box trade volumes dropped 10% from 2019 in the second quarter last year, but the second half was boosted by economies unlocking pent-up demand, inventory restocking and front-loading in key regions, as well as shipments of protective equipment for health workers battling the pandemic.

Clarksons Research said fleet growth "remained manageable" at 2.9%.

The orderbook fell to a new low of 8% of the fleet in October, although a pick up in orders took it to 10% by the end of the year, the company added.

Slower and more eco-friendly

Operating speeds, although now ticking up, averaged 1.3% lower on 2019, and 25% slower compared with 2008.

These slower speeds and the delivery of eco-ships have helped reduce boxship emissions to about 40% below the 2008 level, Clarksons Research said.

New ships capable of using alternative fuels now stand at 21% of the orderbook in teu terms, the company calculated.

"'Green' and 'tech' will be key parts of post-Covid planning for boxship operators and owners who, continued uncertainty notwithstanding, will head into 2021 with a unique, roller-coaster year and some record markets on which to reflect," Crowe said.