Container Ship Market: Gradual Rate Growth and Relative Stability

Sea News – This report examines developments in container ship charter rates based on the New ConTex index. The data presented in this index include weekly and monthly changes in charter rates for vessels of various capacities (1,100 TEU to 5,700 TEU) over six, twelve, and twenty-four-month periods. This analysis provides a comprehensive understanding of the current market situation and future trends.

1. Overall Market Conditions

The New ConTex index, which reflects the general trend of container ship charter rates, increased by 0.1% this week, reaching 1,414 points. This slight rise indicates relative market stability. The surge in demand for 1,700 TEU vessels had the most significant impact on this growth.

Regional Analysis

• Atlantic: The market for 1,700 TEU vessels has remained relatively strong in this region, leading to the stabilization of long-term charter rates.
• Asia: Following the Chinese New Year holidays, market activity is picking up, and demand for vessels is growing rapidly.

2. Analysis of Rate Changes by Vessel Capacity

1,100 TEU Vessels

• Six-month rate: $14,845 (up 0.3%)
• Twelve-month rate: $14,098 (up 0.4%)

1,700 TEU Vessels

• Six-month rate: $26,236 (up 0.3%)
• Twelve-month rate: $23,227 (up 1.6%, the highest weekly increase among all capacities)

2,500 TEU Vessels

• Six-month rate: $29,923 (up 0.5%)
• Twelve-month rate: $30,982 (down 0.2%)

2,700 TEU Vessels

• Twelve-month rate: $33,395 (down 0.2%)
• Twenty-four-month rate: $27,468 (down 0.4%)

3,500 TEU Vessels

• Twelve-month rate: $41,110 (up 0.2%)
• Twenty-four-month rate: $32,960 (slightly up 0.1%)

4,250 TEU Vessels

• Twelve-month rate: $52,995 (up 0.4%)
• Twenty-four-month rate: $40,570 (down 0.5%)

3. Key Market Influencing Factors

• Ship Shortages: Limited vessel supply across various markets remains one of the primary reasons for the sustained high charter rates.
• High Demand in the Atlantic and Asia: The increasing demand in these regions has contributed to rising charter rates, especially for smaller vessels.
• Panamax Vessel Activity: Ships in the 2,500 to 3,500 TEU range, set to become available over the next three years, continue to command rates above $30,000.

4. Future Market Outlook

With rising demand and limited vessel supply, charter rates are expected to continue their upward trend in the short term. However, macroeconomic and geopolitical factors could significantly influence this trend.

Key Takeaway

Any shifts in macroeconomic conditions or trade policies could swiftly impact container ship charter rates.

The current container ship charter market remains relatively stable, with smaller vessels experiencing higher growth. Additionally, the post-Chinese New Year market recovery in Asia and increasing demand in the Atlantic could further support charter rate stabilization—or even further increases. Overall, market conditions suggest a continued positive trend for the near future