The container charter market is experiencing heightened activity, particularly in the larger vessel sizes, amid a slowing rate erosion trend. The tightening supply, especially for modern energy-efficient tonnage, may signal an end to rate erosion and even a potential rebound in the new year, according to Alphaliner.
In the 1,000 to 3,000 TEU range, a reduced number of vessels available for employment in the coming weeks suggests a possible bottoming out of charter rates. Larger sizes (5,500 TEU and above) maintain healthy rates despite a slight softening trend.
Interest in large container vessels remains strong, driven by dynamic North-South and regional trades. Alphaliner highlights the growing importance of markets in Africa, South America, India-related, and Intra Asia trades in addressing overcapacity.
Recent attacks on Israeli-controlled tonnage in the Red Sea may impact container vessel demand, potentially leading to a shift in routes, such as circumventing the Cape of Good Hope.
In the Very Large Container Ship (VLCS) category (7,500-13,000 TEU), carriers secure vessels for deliveries in 2024, indicating continued strong rates. The Large Container Ship (LCS) segment (5,300-7,499 TEU) experiences muted activity due to low supply.
Demand for ‘classic panamax’ vessels (4,000-5,299 TEU) stabilizes rates, while the 3,000-3,800 TEU segment sees relatively firm charter rates with limited tonnage available by year-end.
In the 2,700-2,900 TEU segment, a reduction in supply results in busy activity, with rates stabilizing. Falling supply in the 2,000-2,699 TEU sizes is expected to end rate erosion.
Supply in the 1,500-1,900 TEU segment stabilizes, with charter rates around USD 10,000 per day. The 1,250-1,499 TEU and 1,000-1,249 TEU segments experience increased activity, influencing rates.
The sub-1,000 TEU segment faces a persistently high supply, but charter rates remain generally firm, particularly for specific niche routes.
Overall, the container charter market sees varied dynamics across different size categories, with the potential for rate stabilization and even rebound in certain segments.
To offer the best experiences, we use technologies such as cookies to store and/or access device information. Consent to these technologies will allow us to process data such as browsing behavior or unique identifiers on this site. Failing to consent or withdrawing consent may adversely affect certain features and functions.
Storage or technical access is strictly necessary for the legitimate purpose of allowing the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of transmitting a communication through an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.Storage or technical access that is used exclusively for anonymous statistical purposes. Without a request, voluntary compliance by your Internet service provider, or additional logging by a third party, information stored or retrieved solely for this purpose cannot be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.