Increasing fares are recorded in the market of containerships, at levels reminiscent of the pandemic period. The main factor pushing the market higher is the longer distances as a result of the Red Sea crisis. Charter activity continued at a frantic pace last week as well, despite the celebrations related to the Posidonia shipping fair.
“The cost of transporting containers by sea is again increasing at double-digit rates and it is estimated that this positive trend will continue for some time. Therefore, fares are further improved. Durations are being extended, even for feeders under 2,000 TEUs, which until now have been further behind compared to larger ships,” Braemar underlined in last week’s report.
According to Braemar, the third largest liner company internationally, France’s CMA CGM, has chartered the new ‘Kota Callao’ (capacity 7,092 TEUs) for a three-month period at $105,000 per day.
Analysts pointed out that this charter reflects the trend seen in recent weeks, with operators willing to pay significant premiums for short-term deals.
On the other hand, freight broker MB Shipbrokers noted that shipowners are still attracted to short-term and high-paying charters. “Given the strong competition and lack of supply, we expect continued improvements in the market in the coming weeks,” the brokers said.
According to Braemar, the third largest liner company internationally, France’s CMA CGM, has chartered the new ‘Kota Callao’ (capacity 7,092 TEUs) for a three-month period at $105,000 per day.
Analysts pointed out that this charter reflects the trend seen in recent weeks, with operators willing to pay significant premiums for short-term deals.
On the other hand, freight broker MB Shipbrokers noted that shipowners are still attracted to short-term and high-paying charters. “Given the strong competition and lack of supply, we expect continued improvements in the market in the coming weeks,” the brokers said.
Euroseas deal
A particularly profitable charter was also secured by Euroseas, owned by Aristidis Pittas, for one of its newly built ships. According to various shipping sources, the “Stephania K” (1,800 TEUs capacity and built in 2024) was chartered for a period of two years to OOCL, at a price of $22,000 per day. About a month ago, the US-listed company had booked sister ship Monica on a 10-12 month charter for $16,000 a day. The numbers are indicative of the market’s week-to-week rise.
Braemar called the $22,000 price “impressive”, while MB Shipbrokers noted that demand for vessels under 2,000 TEUs has increased, with charterers actively seeking tonnage and shipowners pushing for longer durations and higher fare.
It is noted that Euroseas will deliver three more new container ships, one with a capacity of 1,800 TEUs and two with a capacity of 2,800 TEUs, by the fourth quarter of this year.
Braemar called the $22,000 price “impressive”, while MB Shipbrokers noted that demand for vessels under 2,000 TEUs has increased, with charterers actively seeking tonnage and shipowners pushing for longer durations and higher fare.
It is noted that Euroseas will deliver three more new container ships, one with a capacity of 1,800 TEUs and two with a capacity of 2,800 TEUs, by the fourth quarter of this year.
Earlier the “peak”
Market analysts estimated that the peak demand in the market usually starts in June, but it seems that it has now started earlier, in May. This is because there are concerns about the longer distances that ships travel from the Cape of Good Hope to the Asia-Europe trade route, due to the Houthi threat in the Red Sea.
“The current rapid increase in fares is similar to the increase recorded during the pandemic period on the Asia-Europe route,” Sea-Intelligence noted.
In fact, the analysts pointed out that the longer distances could lead to new maximum levels of charters, significantly higher than those in the midst of a pandemic.
