News / Carriers on the hunt for open tonnage again as transpacific rates soar

ID 158665740 © Mariusz Bugno | Dreamstime.com

Soaring transpacific rates have seen shipping lines back on the hunt for available tonnage on the charter market.

However, while shipowners want to lock operators in for long periods, the lines are not willing to commit beyond two to three months, fearing that the Trump administration could reinstate the hefty tariffs on Chinese imports when the 90-day grace period ends in early August.

On Friday, the Shanghai Containerised Freight Index registered the largest weekly gain in transpacific rates, the Shanghai-US West Coast rate jumping 58% on the previous week, to $5,172 per 40ft, while the Shanghai-US East Coast rate rose 46%, to $6,243 per 40ft.

MB Shipbrokers said: “In the panamax segment, a few smaller units are reportedly under negotiation for periods of up to three years, aligning with current market expectations and emphasising the current demand scenario.

“With much of the previously available tonnage withdrawn, availability has become increasingly scarce, and owners are less willing to repeat previous fixtures, anticipating continued market improvement.”

It’s a result of shippers rushing to front-load goods into the US before a potential restoration of tariffs and Linerlytica said shipping lines had been rushing to get their hands on any available suitable vessels

The consultancy said: “Vessel availability in the larger sizes remains very limited, with all open candidates over 4,000 teu, including relet units, already snapped-up or withdrawn.

“Forward deliveries have stretched into September, but with little clarity on market direction after the 90-day tariff truce ends in the US, only a few carriers are willing to commit forward at the moment, with several fixtures done on shorter periods of two to three months at significantly higher premiums.”

For ships in the 4,200-8,000 teu range, charter rates have gone up 37% to 47% year on year, and are now between $50,000 and $85,000 a day – Maersk has taken Safeen Group’s 4,398 teu Gulf Barakah for three to five months, for $51,000 a day.

Linerlytica added: “Most of the available capacity is being redirected to the US, where services withdrawn earlier have been reinstated, while four new services to the US West Coast are being added, along with a host of extra loaders.”