Recent developments in the shipping industry have highlighted a significant rise in charter rates, with Maersk Line setting a new record by agreeing to pay $150,000 per day to charter TS Lines’ 7,000 teu vessel, Kota Valparaiso, for a three-month period. This comes amidst increasing demand from liner operators for available ships.
Earlier, CMA CGM had chartered a similar vessel, Kota Callao, for $100,000 per day, marking another high in charter rates. Both vessels are slated to join Pacific International Lines after their temporary assignments with CMA CGM and Maersk.
TS Lines, which had commissioned these ships during the peak of the Covid-19 pandemic to expand into long-haul routes, opted to charter out some vessels due to market corrections in 2023. The vessels are likely to be deployed on Asia-South America services, where rates have recently reached near two-year highs.
Analysts from Linerlytica noted that the global shipping market has absorbed all 1.62 million teu of newbuildings delivered in 2024 to date. They attributed this absorption partly to the Red Sea crisis, which has diverted more than 1.6 million teu of capacity since December 2023.
The consultancy highlighted ongoing shortages of ships globally, resulting in continued increases in freight and charter rates, especially as the market enters its peak season. It noted that charter rates across all vessel sizes are setting new benchmarks, with shorter-term charters commanding significant premiums.
Logistical challenges, including port congestion, have further exacerbated vessel availability issues. Linerlytica estimated that recent port congestion has removed an additional 500,000 teu of vessel capacity from circulation. Despite the active fleet standing at just over 25 million teu, slightly below its peak in December 2023, global port congestion remains particularly acute in Southeast Asia, notably affecting hubs like Singapore and Port Klang. This congestion has also led to delays in northern European ports, including Rotterdam, where ships from Asia are causing berthing delays.
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