Soaring freight rates

Charter market in excellent shape

by Port News Editorial Staff

The market, which is very volatile, due to the effects of the pandemic crisis, is pushing more and more shipowners to charter every available vessel in order to grab new capacity and to favour time-charter contracts over spot deployments.

Non-operating owners are making lucrative business deals these days. Charterers are willing to acquire new vessels at any price and under any conditions.

Alphaliner pointed out that 9,000 TEU vessels were chartered today at a price of $50,000 per day, in time-charter contracts that in some cases were for as much as five years, while small 4300 TEU vessels were employed on 28-day contracts at a price of $41,000 per day. A level not seen for 17 years.

The charter rate index has not reached such levels since 2005.  The current strong market situation is putting pressure on carriers, who, according to the consultancy firm, will continue to take every opportunity to acquire new tonnage. This trend is expected to last at least until the end of the summer.

Increased demand for new tonnage in the charter market has also reduced the idling fleet to 2.8% of the total.

Translation by Giles Foster

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