BOXSHIP charter rates are expected to remain at record-breaking levels throughout 2022 on a critical shortage of tonnage, leaving regional carriers in the lurch as they lock into deals for smaller tonnage beyond anticipated duration of soaring price levels.
The situation allows shipowners to leverage longer hire periods as some carriers seek advance deals for existing vessels that are not available until 2023, reports London's Lloyd's List.
'We're doing deals we couldn't have imagined three months ago,' one shipbroker told Lloyd's List, attributing continued high demand for vessels partly to longer-lasting supply chain and inland logistics challenges in importing countries.
'Three to four months ago, we all thought that port congestion problems would probably be resolved in the first half of 2022, and we would have a slow return to normal, yet we still have a firm container market because there are essentially very few newbuildings being delivered this year.
'Then in 2023 peak tonnage would start (delivering) and then we would see a softening of charter rates, not back to pre-coronavirus levels, but a more normal market. But the tune has changed.'
After pausing super-charged growth last October, charter rates remained elevated and have posted gains in January's first half, as demand for vessels continues to outpace supply as lockdowns, cancelled sailings, supply imbalances and port congestion wreaks havoc on schedule reliability and extends sailing times.
Twelve-month deals for containerships with capacity between 5,700 TEU and 6,500 TEU exceed US$100,000 daily, more than three times levels seen 18 months ago, the latest ConTex index assessments show.
Unlike the dry bulk and tanker markets which have an active spot market, single-voyage terms for boxships are extremely rare.
Short-term charters are viewed as six to 12 months' duration, with longer periods more commonplace as container lines typically operate a mixed fleet of chartered and owned tonnage on dedicated routes and need greater certainty.
Container lines are now approaching non-operating owners about boxships that do not come off charter until 2023, offering to fix forward at a slight discount, another shipbroker told Lloyd's List.
SeaNews Turkey
The situation allows shipowners to leverage longer hire periods as some carriers seek advance deals for existing vessels that are not available until 2023, reports London's Lloyd's List.
'We're doing deals we couldn't have imagined three months ago,' one shipbroker told Lloyd's List, attributing continued high demand for vessels partly to longer-lasting supply chain and inland logistics challenges in importing countries.
'Three to four months ago, we all thought that port congestion problems would probably be resolved in the first half of 2022, and we would have a slow return to normal, yet we still have a firm container market because there are essentially very few newbuildings being delivered this year.
'Then in 2023 peak tonnage would start (delivering) and then we would see a softening of charter rates, not back to pre-coronavirus levels, but a more normal market. But the tune has changed.'
After pausing super-charged growth last October, charter rates remained elevated and have posted gains in January's first half, as demand for vessels continues to outpace supply as lockdowns, cancelled sailings, supply imbalances and port congestion wreaks havoc on schedule reliability and extends sailing times.
Twelve-month deals for containerships with capacity between 5,700 TEU and 6,500 TEU exceed US$100,000 daily, more than three times levels seen 18 months ago, the latest ConTex index assessments show.
Unlike the dry bulk and tanker markets which have an active spot market, single-voyage terms for boxships are extremely rare.
Short-term charters are viewed as six to 12 months' duration, with longer periods more commonplace as container lines typically operate a mixed fleet of chartered and owned tonnage on dedicated routes and need greater certainty.
Container lines are now approaching non-operating owners about boxships that do not come off charter until 2023, offering to fix forward at a slight discount, another shipbroker told Lloyd's List.
SeaNews Turkey
