CONTAINERSHIP charter rates have risen by up to 15% in the past two weeks as demand for vessel capacity has increased, as most major operators have diverted tonnage away from the Red Sea.

“Chartering activity during the second week of 2024 further improved,” said shipbroker Braemar. “Various prompt vessels across all sizes and regions are seeing increasing interest and charter rates, while periods are witnessing a firming trend.”

Hamburg-based broker Martini Chartering said that after the charter market bottomed out in December, average charter rates across all size segments climbed, giving boxship tonnage providers some cause for optimism.

“The current mood is positive, with shipowners able to achieve rate levels above last done, while period commitments have also started to lengthen.” 

It said that extra loaders being fixed by container liner operators for the Asia-Europe trade or with business connected to Red Sea trading are able to achieve “hefty” charter rates.

Charter rate improvements have been highest among the larger vessel segments, with 8,500 teu containerships now commanding daily rates that are 15% greater than in December, while rates for 6,500 teu units have increased by 12% in the same period.

Panamax vessels have seen charter rate improvements of between 9% and 12% as demand for such vessels to service Asia to Red Sea cargoes, which would normally have been dropped off in the Red Sea by vessels bound from Asia to Europe, has boomed.

Linerlytica estimates that capacity shortages, due to Cape of Good Hope diversions on the Asia-Europe route, will require an extra 70 ships with a combined capacity of some 1m teu to maintain weekly frequencies on the 30 regular services that service the Asia to Mediterranean and northern Europe routes. This estimate is based on current revised routings.

The analyst has noted that the inactive containership fleet has continued to slide, with drops in both idled units and ships undergoing drydockings.

“The idle fleet currently stands at 82 units of a combined 132,000 teu, with just four units of over 5,000 teu still without employment. The bulk of the idle fleet comprises smaller units of below 3,000 teu.” 

Charter rates for vessels of below 3,000 teu have remained relatively static since December, with the the exception of vessels being chartered for operation in the Red Sea.

Braemar noted that owners of the 1,440 teu Cape Flint (IMO: 9347724) opted to fix a short period for a service to the Red Sea and gained a significant premium in daily rate to $16,900. This is up from the around $9,000 per day, which would have been achieved in November. The 2006-built ship has been fixed to Singapore-based container line operator Sealead Shipping.  

Demand for feeder tonnage could increase in the coming weeks for service in the Atlantic Basin, as container line operators will need to feed more containers to and from the eastern Mediterranean from ships diverted around the Cape of Good Hope. 

Recent fixtures in the post-panamax segment included the Nissen Kaiun-owned 8,500 teu sister vessels OOCL Durban (IMO: 9567673) and OOCL Brazil (IMO: 9495038), which have both been extended for two years at a daily rate of $31,000. They are deployed in the north Asia to Australasia trade.

The supply of post-panamax boxships available from the charter market is expected to reduce in the coming weeks, prompting further rate rises should the Red Sea crisis prevail.

Meanwhile, Maersk is said to have been particularly active, having secured at least six ships in the past week, including the extension of Technomar’s 5,936 teu Tasman (IMO: 9189342) for one year at a daily rate of $21,500.