Boxship charter market stays strong as high enquiry levels continue

BOXSHIP charter rates remain stable as strong demand for containerships is being maintained during a period of a freight rate downturn and a continuing flow of new tonnage entering the market.

“Despite the continued pressure on freight rates, the container time charter market remains highly active, with multiple fixtures concluded and several negotiations — at present, there are no clear indications of a slowdown,” said shipbroker Braemar.

It reports container line operators still need to act quickly to secure tonnage, as providers are frequently receiving multiple charter inquiries for their vessels “which keeps competition strong and availability limited”.

Supply constraints mean there are few fixtures being concluded for tonnage of above 5,000 teu, while the panamax segment saw an increase in activity lately.

“Operators often have to commit to forward deliveries rather than securing prompt tonnage — a trend that has persisted for several months now,” said Braemar.

The Hamburg and Bremen Shipbrokers’ Association (VHBS) reports activity is strongest for the 1,700 teu segment where “most of the action is happening right now”.

“In the Atlantic it has been a rather strong market for 1,700 teu vessels for quite some time, with charter periods of two years established even for less sophisticated designs,” said VHBS.

It noted that, after the Chinese New Year, the Asian market was catching up, with charterers “racing” for ships, while the market for 1,100 teu feeders had also witnessed high levels of activity, particularly for European and Caribbean service.

“We expect the market to remain on a slight upward trajectory in the short term, with activity levels only hampered by the limited availability of ships — further developments will obviously depend on political and macroeconomic circumstances,” added VHBS.

Recent fixtures in the panamax segment included the 4,298 teu Baltimore Star (IMO: 9440796), which was extended by Maersk for 38 months at a daily rate of $35,500.

In the feedermax segment, Gold Star Line extended the 2,800 teu Calandra (IMO: 9445887) for up to 27 months at $27,000 per day.

Meanwhile, Unifeeder is said to have extended the charter of the 2,000 teu Med Star (IMO: 9337028) for one year at a daily rate of $25,000.

In the regional feeder segment, Zim fixed the 1,700 teu St.John (IMO: 9634646) for 22 months at $23,250 per day and in the small feeder segment CMA CGM is said to have extended the 1,209 teu Lila Haren (IMO: 9238686) at $18,750 per day for two years

#BaltimoreStar #Calandra #MedStar #StJohn #LilaHaren #Braemar #Maersk #GoldStarLine #Unifeeder #Zim #CMACGM #Containers #MarketInsight #CharterRates #Brokers

Lloyd's List Daily Briefing 18 February 2025