Container liner operators are caving in to tougher charter terms demanded by boxship tonnage providers.
Major carriers such as CMA CGM, AP Moller-Maersk and Hapag-Lloyd are taking vessels at higher rates or for longer periods.
The grab for ships comes amid signs of panic caused by the prospect of prolonged disruptions due to the Red Sea crisis.
Most activity in recent days has focused on smaller ships up to 4,000 teu, resulting in a number of two-year fixtures, with German carrier Hapag-Lloyd taking the 2,702-teu GH Foehn (built 2008) for 24 months at $17,250 per day.
That is a longer period than might be expected to be obtained by an older vessel in the year to date.
More modern vessels are being fixed at higher rates.
Maersk is taking the 2,862-teu Anaxagoras (built 2024) from Capital Ship Management for 24 months at $25,000 per day.
France’s CMA CGM snared four 2,200-teu vessels on a forward basis, despite the potential expiration of the vessel charters in the coming months. That includes the 2,190-teu Cape Quest (built 2017) taken for 15 to 17 months at $20,000 per day.
Legs to run?
The rally left some asking how long the bonanza will last.
“It should be kept in mind that new vessels are continually being delivered from shipyards daily,” shipbroker Braemar noted.
With charter rates rising to their highest in nine months, some carriers are glad of the deliveries.
That includes feeder specialist Unifeeder, which is taking delivery of a series of 3,000-teu ships ordered in 2022 by Denmark’s Celsius Shipping for use in a newly inaugurated dedicated service between China and the Middle East.
The first vessel, the 3,006-teu Celsius Essen (built 2024), is scheduled to kick off the maiden voyage as it sails from Shanghai on 19 May.
By then, charter rates could be even higher if the charter market maintains its current momentum.
Unifeeder booked the conventionally powered, 3,000-teu vessels on five-year charters at a reported rate of $25,000 per day.
“If you had judged that a few, six, nine, 12 months ago, it might have looked a little bit less fantastic,” Unifeeder CEO Jesper Kristensen said.
“Now it’s actually perfect timing,” he said. The charter rates can be considered “acceptable levels” on “very efficient ships”.
“Of course, we don’t want to spend money that we don’t need to spend. But on the other hand, we’ve seen this before,” he said.
Gradual rise
Four months of consecutive rises have taken average container ship earnings to $24,139 per day, their highest since July, according to shipbroker Clarksons.
The FBX Global Container Index traded at $2,408 per 40-foot equivalent unit on 30 April, down from a peak of $3,482 per feu in mid-February.
Rates out of Asia remain well above 2019 levels as Red Sea diversions continue to absorb capacity and make blank sailings rare even during these slow-season months, according to freight booking portal Freightos.
Freight rate announcements in May scheduled for Asia-Europe and Mediterranean trade suggest carriers plan to keep prices at their current levels, Freightos added.
