Longevity of post-CNY slump catches container trades by surprise
Two months on from Chinese New Year and the traditional post-holiday blip shows no sign ...
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A charter market correction could be looming amid the deterioration in spot rates. Citing the Shanghai Containerised Freight Index, Splash reports that spot rates have plummeted some 47%. And, while profitability remains possible as long as utilisation remains above 80%, the same report notes that box ship utilisation on the world’s biggest trades has now dipped below 90%.
Despite the year starting in contraction, the charter sector has been experiencing something of a boom, with the charter to freight ratio at ...
Comment on this article
Mike Wackett
March 19, 2025 at 11:01 amUnlike freight rates, containership charter rates will not collapse overnight. Existing fixtures have a some way to run and owners are sitting on several more quarters of good returns. As we have seen before with Zim and others, carriers may indeed attempt to sub-let excess capacity to mitigate their losses.