Tough times in chartering sector

Container market

Compared with last year, chartering activity did not pick up during the second quarter. In general the very small sub 900 teu and the larger 1,700 teu plus feeder vessels underperformed the 1,100 to 1,300 teu segments.

The small market for 600 to 700 teu ships showed some surplus vessels during the last months. This imbalance, however, did not cause charter to fall, as ships were fixed for US$ 6,000 to US$ 7,000; but periods shortened significantly. Period charters of about 12 months, common a year ago, disappeared; short and flexible was the new norm.

The 1,100 teu sector’s supply and demand was at equilibrium over the last couple of months. Stable demand and little ballasting activity led charter rates to stay in the high US$ 7 thousands. Talking on absolute levels, the 1,300 teu ships were once again the best performers. Charter rates remained at around US$ 8,000 since the available tonnage in the Caribbean stayed constant.

Read more: Russbroker Caribbean Market Review