The container ship charter market has been busier than expected, with a rash of fixtures
for big vessels after Chinese New Year, writes Michael Hollmann
The first two months of the year are usually not too exciting. However, this time it seems that operators are[ds_preview] moving early to cover their capacity needs for the summer peak season, judging by the spate of period fixtures for large and very large container ships in the first half of February. The restructuring of the liner alliances effective April is believed to be adding momentum to charter demand as carriers rejig their vessel systems. There is also a more positive trade outlook for 2017 following the return to growth on the Asia/Europe route and further expansion of the transpacific and intra-Asia trades last year.
Although the huge overhang of unemployed container vessels rules out steep improvements, there is a growing feeling »that we are seeing the very early stages of a modest recovery,« as the Hamburg Shipbrokers’ Association declared. Average charter hires for ships up to 4,250TEU are up more than 2% over the past four weeks, with geared 2,500TEU and gearless 2,700TEU and 3,500TEU (12 month periods) spearheading the rise.
Although an estimated 160 tramp ships across all sizes are currently running spot, positional opportunities in various sectors and regions allow owners to push rates up a little. »Spot/prompt vessel ability appears to be slowing and there are even signs of tightness for specific types and sizes in certain regions,« one British broker observed.
In the largest classes, NYK Line reportedly fixed the 9,030TEU »Czech« for 12-18 months at a rate in the mid 14,000’s $/day which would represent a moderate improvement on last done. A sister ship was reportedly fixed to Yang Ming for 13,000 $/day a couple of weeks ago. Generally, brokers judge prospects for modern 9,000-11,000TEU vessels as relatively good based on trade route and liner network trends.
Rates for standard 8,500TEU vessels show a gradual improvement from 8,000$/day at the end of last year into the mid and upper 8,000$/day, while new wide-beam, eco designs in the 6,500–7,000TEU range obtain more than 9,000$/day. Maersk was particularly active, fixing the 6,845 TEU »Paxi« at 9,250$/day and extending the Zodiac-controlled 6,622TEU sisters »Swansea« and »Cardiff« at 9,800$/day.
Interest for wide-beam 4,600-5,400TEU ships flared up as well, with KMTC, K Line, MOL and Zim snapping the last available vessels for now at rates of up very high 7,000’s $/day. 3,300–3,800TEU ships also experienced good demand as borne out by shortening tonnage lists and rates reaching upper 6,000’s $/day. Notable developments in the charterers’ camp include the foray of West Africa specialist NileDutch into a larger vessel segment than before and the emergence of SM Line – set up by Korean SM Group for the takeover of Hanjin’s transpacific business – as charterer for midsize vessels for its planned intra-Asia trade.
The feeder ship market in Europe offered a split picture, with rather high activity for ice-class tonnage in North Europe but a continued lack of interest for vessels in the Mediterranean.
Michael Hollmann
