The so-called charter rally is largely due to the high demand for smaller-sized vessels on the intra-Asia trades.
Surge in demand for small ships onintra-Asia trades drives charter rally
INCREASING demand for smaller boxships on regional trades has helped charter rates surge to their highest level for four years, as freight rates on the global spot market continue to break records for all the wrong reasons.
Over the past 12 months, Alphaliner’s Containership Charter Index has climbed some 39%, while at the same time the Shanghai Containerised Freight Index has fallen 39%, as the influx of larger ships on the key east-west trades — against moderate trade growth — continues to impact freight rates negatively.
According to Alphaliner, the so-called charter rally is largely due to the high demand for smaller-sized vessels on the intra-Asia trades, where rates within the 1,000 teu, 1,700 teu and 2,500 teu are at their highest price since 2011, up 38%, 43% and 74% over levels this time last year on the ACCI.