Containership chartering: well, that’s was certainly a notable freight rate year for the containership sector that was.
As 2024 closed its books, we saw a year-on-year three figure boost in in charter rates in nearly every ship size category, in nearly every time charter duration. One of those charter rates, for vessels at the 4,250 TEU mark over a 12-month period, recorded a 225.4% hike.
All of the other ship charter rates were above – and were way above – a 100% increase. Only two categories were below 100% year-on-year. One was the 1,100 TEU / 6-month category at 97.4$ and the other was the 1,100 TEU / 12-month category at 99.7%
So, if you were a ship-owner offering ships for hire in 2024, wow! If you were a ship-operator, ouch!
As the year drew to a close though, a slowdown was evident with greater than 2% rises in most categories on a month-on-month basis and a largely flat market in the very end days of 2024.
Skipping over the Western holiday break and the market appears to be showing mixed sentiment with charter rates for a few segments showing small rises, most were flat, and some were down. Perhaps it is too early in the year to start making many sensible comments other than the vessel availability is reported by brokers to be low in most sizes while demand is good.
Box Freight Rates: Drewry shipping advisors report that container freight rates have decreased by about 3% to USD$3,855 per forty footer this week. That’s a considerable slump from the recent-ish peak in July 2024 of about USD$6,000.
But, believe it or not, after falling for a while to late October, freight rates have since then been resurgent before peaking once again at the end of 2024. So was the Oct-Dec surge a mini-bull-run or a dead-cat bounce? Time, as we all know, will tell.
Now, to the Devil. He is lurking in his favourite place: the detail.
The current ladder-climber, Shanghai to New York is still very high at USD$6,825 whereas the bottom-dweller, Shanghai to Rotterdam, is excavating away in the dirt at USD$4,231. The other rates are middling about in that range.
Peering short-sightedly into the crystal ball and some experts expect spot rates to decrease slightly in the coming weeks because of increased supply.
Meanwhile, elsewhere in Asia, and the weighted average of regional spot box rates fell 6% in the fortnight to 15 January 2025 to USD$828 per 40 foot container, according to Drewry. Philip Damas, Managing Director at Drewry, notes that the intra-Asia rates re about 56% high than the same time last year, “indicating the continued strength of the intra-Asia trade”.
But quirks abound. The recent fall in rates on the intra-Asia trade, ahead of the Lunar New Year (late January 2025) is “contrary to normal seasonal pricing”.
“Unusual!” he exclaims.
