The container charter market remains on a bullish course, with skyrocketing cargo rates further to the tariff ‘pause’ and a continued shortage of ships keeping charter rates at very healthy levels.
Further charter rate gains are even being observed in the ‘Classic Panamax’ (4,000-5,299 TEU), 2,000-2,699 TEU and 1,000-1,249 TEU sizes, where charterers have lately been forced to pay up to secure the tonnage they need.
Forward fixing, particularly for large vessels or for high-specification units, remains very much in fashion and often needed to secure the right ships.
However, some carriers have become a little more cautious in terms of duration and rates they can agree on, given the multiple policy and geopolitical uncertainties the industry continues to face.
In the short term, the market will continue to suffer from a shortage of ships across the board, caused by both the recent strong demand and a shrinking of the non-operating owner (NOO) fleet.
Meanwhile, on the cargo demand side, the Shanghai Containerized Freight Index (SCFI) has risen by a whopping 66% since a 90-day truce was decided on the Trump tariffs in early May. However, the rally is beginning to taper off as capacities are being re-introduced on the Pacific, the worst-hit trade route.
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Source: Alphaliner
