Shipowners and liner operators are close to fixing several containerships in the 5,500-teu to 9,000-teu segment at much improved rates, say several market sources.
They point to at least one vessel of more than 8,000 teu that has been fixed in recent days at about $15,500 per day, or around 20% higher than the most recent equivalent deal.
The three-month fixture with a major operator is understood to have led to the first increase in rates for vessels of this size in nearly five months.
The once-plagued 5,500-teu to 7,000-teu market has virtually sold out within the past two to three weeks. Hardly anything is left open for the remainder of the year
“The once-plagued 5,500-teu to 7,000-teu market has virtually sold out within the past two to three weeks,” said one European broking source. “Hardly anything is left open for the remainder of the year.”
Scrubber installation
Brokers believe that some of the fixtures under negotiation are likely to include the fitting of scrubbers on the back of charters.
Recent fixtures of large containerships have been dominated by CMA CGM, which has taken three ships of more than 8,000 teu on period employment.
The French liner operator fixed the 8,586-teu Gulf Bridge (built 2011), 8,204-teu Navios Unite and 8,533-teu ER Tianping (both built 2006) for periods ranging from 40 days up to nine months at between $12,400 and $13,000 per day, say broking sources.
New charterer
The large boxship sector has also been boosted by a new charterer to it.
TS Lines of Hong Kong has taken the 8,533-teu Lloyd Don Giovanni (built 2006) for a period of up to three months at a reported $12,500 per day. It is the largest containership ever taken by TS Lines and will be deployed on the Asia-India trade, according to Alphaliner.
The tightening market for large boxships has yet to filter down to the smaller sizes.
The BOXi charter-rate index — which measures a basket of 12 sizes from 1,100 teu up to 10,000 teu — dropped another 2.52 points to 65.95, barely five points from its 52-week low.
Year-end stable
But shipbroker Braemar ACM believes that charter earnings are approaching levels where they are likely to remain for the rest of the year.
Rates for traditional panamax vessels in the 4,000-teu to 4,500-teu sector continue to be in line with most recent deals.
The 4,330-teu MP The Law (built 2009) has been fixed by MCC Transport for four to 12 months at $10,200 per day, while the 4,253-teu Synergy Antwerp (built 2008) has been taken for four to 10 months by Maersk Line at $10,500 per day.
That compares with stronger rates for modern, wide-beam designs such as the 4,675-teu RDO Fortune (built 2012) taken by Hyundai Merchant Marine for four to seven months at $12,750 per day.
Rates for containerships in the 1,100-teu to 4,250-teu range — as tracked by the New ConTex index — dropped another 8% to 434 points.
Feederships hit hard
The sector for smaller feederships of 1,100 teu to 1,700 teu remains the hardest-hit as they are weighted down by a sizeable idle fleet.
Alphaliner estimates the idle fleet increased to a 19-month high of 662,260 teu at the end of October.
Charterers of smaller ships are taking advantage of the weaker market by pushing for more flexible periods, according to New ConTex.
