Markets head for slowdown as Global economy weakens

By Jan-H. Heikes

Container Market

In the 1,700 teu and 2,500 teu ship sizes the Caribbean charter market has followed the global downward trend. Vessels with high reefer intakes are still able to earn a premium of between US$ 1,000 and US$ 2,000 but standard tonnage has come down to the same low levels (US$ 6,000-7,000) that ships can earn in Asia or the Mediterranean.

The 1,300 teu segment once again proved to be more resilient, resulting in about 20 per cent higher rates than the bigger vessels can achieve. The categories of 1,100 teu and below are relatively stable, with earnings in the mid to high US$ 7,000s.

Although only about 30 containerships between 500 teu to 900 teu are currently employed in Central and South American services, a special focus should be cast upon this segment. Strong demand, resulting in relatively high rates (US$ 7,500) and long charter periods, have even enticed two 700 teu ships to retrofit cranes in the Far East and position to the Caribbean.

Read more: Russbroker Caribbean Market Review