Charter rates in the maritime industry will rise in the short term

Inspenet, March 29, 2023

The container charter market remains very active, with a lot of fastening activity in most sizes, especially below 5,000 TEUs*. CMA CGM continues to be very strong, with a third of the deals concluded in the last fortnight, reports Alphaliner.

Sustained demand for tonnage has seen almost all NOO spot vessels find new employment, with just three vessels now available for charter worldwide, up from 20 units in early February. It should be noted that ten classic Panamax 4,300 TEUs in spot position in Asia have been able to find new contracts in rapid succession, which shows the vitality of the activity.

However, high demand and declining supply have so far failed to significantly boost charter fares, which are broadly stable. Only “classic panamax” (4,000-5,299 TEUs) register a slight upward trend, as well as the 1,700-1,900 TEU segment, where energy-efficient vessels, particularly new builds, command increasing premiums reflecting their greater operating profile of IIC.

Given the tonnage shortage, Alphaliner believes that charter rates will continue to rise in the short term and will extend to most vessel sizes. However, the long term remains highly uncertain, due to the anticipated influx of new build capacities that will directly or indirectly affect most ship sizes, with the exception of the smallest units under 1,000 TEUs.

* TEU is an acronym that comes from the English “Twenty-foot Equivalent Unit” and corresponds to a unit of measurement used in foreign trade to calculate the load capacity of containers. In other words, a TEU is the cargo capacity of a standard 20-foot (20′ x 8′ x 8′) container.

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Photo : Envatos

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