Activity in the charter market remains low due to a continued dearth of tonnage impacting most sizes. However, the underlying demand remains strong, with ships coming up for employment on a prompt basis rapidly securing a new employment.
Charter rates plateauing in past weeks, but rise in prices is now resuming, with both classic Panamax and 2,700-2,900 TEU ships fixed at new record highs, on the back of a surge in demand. Charterers’ resistance to accept ever higher rates once more showing its limits.
Charter rates expected to carry on their journey at historically high levels, as demand continues to far outstrip supply. Congestion issues around the world with over 300 ships “withdrawn” from the market as also play their part in supporting high charter rates.
The only clouds on this bright horizon are therefore the falling spot cargo rates on the Pacific – a development that is believed to be temporary as Golden Week-related, as well as oil prices, which continue to rise steadily.