Surging transpacific rates resulting from the paused US-China tariff war have reversed the correction in the boxship charter market, as previously relet vessels have been withdrawn to be deployed back to transpacific routes.
With mainline operators rushing to add more US sailings, container ship owners are demanding higher premiums as the freight market continues firming.
ONE has renewed its hire of Zodiac Maritime’s 2008-built 6,350 TEU Brighton, for three years, for US$39,500/day. The pan-Japanese carrier also appeared to have extended its employment of Navios Group’s 2007-built 4,250 TEU Navios Verde for two years for US$35,500/day.
Consultancy Linerlytica said: “Charter rates have enjoyed a revival, with demand for ships returning strongly, especially for Asia-US deployment, and previously available sublet units are withdrawn from the market.”
Negotiations for prompt deliveries for short-term fixtures to take advantage of the 90-day reduction in US import tariffs at premium rates are pushing up the overall charter rate index again after the lull in the previous four weeks.
With limited units available in the 4,000 TEUs and larger segments, the rates are being quickly pushed up, with activity mostly focused on relet units and owners will be looking to push for higher premiums as the transpacific freight market continues to surge.
On 16 May, the Shanghai Containerised Freight Index (SCFI) showed the Shanghai-US west coast rate gained 32% from the previous week, to US$3,091 per 40ft, while the Shanghai-US east coast rate went up 22%, to US$4,069 per 40ft. Transpacific rates are now at levels not seen since February.
MB Shipbrokers (formerly Maersk Broker) said: “With the limited availability of tonnage, we do not expect to see much action the next few weeks except for potential relet possibilities for short periods. In the Panamax segment, a couple of relets remained in the market under discussion on terms in line with the last done levels. ‘Real business’ is challenging as virtually no capacity is available for charter for the remainder of the year.”
Linerlytica noted that mainline operators are rushing to add more capacity on the US route to take advantage of the surging freight rates, with at least 20 open positions still to be filled.
Martina Li
Asia Correspondent
