Greek shipowner Danaos Corp has concluded a series of forward charters with Cosco Shipping Lines in a deal that indicates the ongoing strength of the container ship charter market.
The New York-listed shipowner has reportedly agreed to charters starting in early 2025 for three of its sub-panamax boxships.
The vessels taken on extension by the Chinese liner giant are the 3,398-teu Express Black Sea and Express Spain (both built 2010) and the 3,314-teu Colombo (built 2004).
They have been forward-fixed to the Asian operator for 24 months at $29,000 per day, according to shipbroking sources.
That is slightly less than the rate for similar fixtures for prompt positions but demonstrates enduring demand in the market.
Cosco’s interest comes after European liner operators have in recent weeks held back from committing to forward positions.
That may have helped to cool the charter market, which had been soaring ever higher for most of June and early July.
Fundamentals strong
While the charter market has slipped back in the past few days, the underlying demand remains strong, said brokers.
That is reflected by the ongoing rise in charter rates measured by the New ConTex index, which rose 1.2% in the week ending 19 July.
The New ConTex stands at 1,345 points, putting it some 75% higher than the same point last year.
The rise is helped by forward fixtures in the midsize boxship segment by US liner operator Matson.
The Hawaii-based company is understood to have extended the charter of the 4,870-teu Matson Waikiki (built 2008) for three years.
The vessel has been fixed from the fourth quarter of 2025 at a rate of $26,500 per day.
Matson is thought to have specific speed requirements, which may explain such a forward commitment, brokers say.
Rate peak
While the charter market remains strong, there are more signs that the container freight rates have peaked.
Spot freight rates measured by the Shanghai Containerized Freight Index (SCFI) have declined for the second consecutive week.
The SCFI is down to 3,542 points on 19 July. It is some 5% down from its recent high point two weeks ago when rates peaked after a 13-week rally.
Further signs of the market peaking are reflected by the Freightos Baltic Index, which fell to 5,007 points this week from this year’s peak of 5,218 on 9 July.
Other indices such as the Drewry World Container Index inched up 1% last week. Drewry expects rates out of China to remain high throughout peak season.
