The container charter market continues its upward trajectory, with Non-Operating Owners (NOOs) reaping the benefits of favorable conditions. Despite the recent Chinese New Year holiday in Asia, activity in the market has remained robust, particularly for vessels of various sizes, according to Alphalnier.
Charter rates are experiencing sharp increases, especially for larger vessels of 4,000 teu and above, due to tight supply of prompt tonnage. Owners are striving to secure longer commitments from charterers, although success in this endeavor varies.
In the smaller size categories, rates also remain positive, especially for modern, energy-efficient tonnage. The high market activity is largely attributed to disruptions in the Red Sea and increased cargo volumes on key routes.
Looking ahead, the market faces the threat of overcapacity in 2024, as newbuilding tonnage continues to enter the market.
ULCS and VLCS Demand Remains High
ULCS and VLCS segments continue to experience demand, albeit with some variations. Maersk’s extension of the WAN HAI A12 vessel and the lack of new fixtures in the VLCS segment highlight the tight supply of prompt tonnage.
In the LCS segment, while activity has decreased due to limited prompt tonnage, rates continue to rise steadily, reflecting strong demand.
Classic Panamax Rates Surge
Classic panamax vessels remain in high demand, with rates steadily increasing due to limited supply. Rates for handy units and maxi panamax vessels have risen significantly in recent weeks.
Strong Fundamentals in 3,000-3,800 teu Segment
The 3,000-3,800 teu segment continues to see rising charter rates driven by low tonnage supply and strong demand. Recent fixtures indicate an upward trend in rates for this segment.
Healthy Rates for Energy-Efficient Units in 2,700-2,900 teu Segment
Modern energy-efficient units in the 2,700-2,900 teu segment are fetching healthy rates, while more standard units maintain stable rates. Supply is expected to increase slightly in the coming weeks.
Atlantic Market Outperforms Asia in 2,000-2,699 teu Segment
The Atlantic market outperforms Asia in the 2,000-2,699 teu segment, with higher charter rates recorded. However, upcoming positions indicate manageable supply levels.
Activity and Rates Increase in 1,500-1,900 teu Segment
The 1,500-1,900 teu segment sees improving fundamentals with rising demand and decreasing supply. Charter rates have increased, particularly in the Atlantic market.
Rates on the Rise in 1,250-1,499 teu Segment
The 1,250-1,499 teu segment experiences increased activity and rising rates, especially in the Atlantic market.
Recovery in 1,000-1,249 teu Segment
The 1,000-1,249 teu segment shows signs of recovery, with fewer ships becoming available and slowly increasing charter rates.
Atlantic Market Drives Demand in Sub-1,000 teu Sizes
Demand in the sub-1,000 teu segment is primarily driven by the Atlantic market, leading to firming rates as high-spec ships become scarce.
Overall, the container charter market remains buoyant, with strong demand across various vessel sizes and regions. Owners continue to benefit from favorable market conditions, although challenges such as overcapacity loom on the horizon.
