News / Charter market gets a boost as carriers look to plug holes in networks

© Phaisarn Wongkulchata

Enforced schedule changes, with ships diverted via the Cape of Good Hope due to Houthi attacks in the Red Sea, are prompting carriers to launch more hub & spoke-type services to plug the gaps in their networks.

This is particularly the case for services to and from the Mediterranean, the most affected by the omission of Suez Canal transits. Moreover, weekly transhipment links have also become a viable option for carriers that need to rationalise port calls in both Asia and North Europe.

For example, from next week, Maersk said it would commence a weekly service from ports in the Arabian Gulf, via the Cape of Good Hope, to a range of ports in the west and east Mediterranean.

The first westbound sailing of the new ME8 loop is slated to be performed by the 2014-built, 9,034 teu San Clemente, departing from Doha on 14 February, while the first expected eastbound sailing will be from Port Said on 17 February, by the 2011-built, 4,253 teu Constantinos P11.

Maersk said that, in the Mediterranean, Port Tangier and Port Said would serve as transhipment hubs for cargo connections, while in the Arabian Gulf, the hubs would be Salalah and Jebel Ali.

Vespucci Maritime’s Lars Jensen said he expected to see other carriers also redesign their networks and/or launch similar services linking the Arabian Gulf, Indian subcontinent and East Africa with Europe.

He said: “Shippers in these trades should expect fewer direct port calls and the use of more transhipment hubs, especially into the Mediterranean.

“It should be expected that even new services might see further revisions to their rotations as cargo flows and feeder networks begin to adjust to the new reality.”

It follows that carriers have charged their broker divisions with finding extra tonnage to cover the new links, and the containership charter market “remains dynamic”, said London-based shipbroker Braemar, while Copenhagen-based MB Shipbrokers reported “noteworthy activity” in the feeder segment.

Indeed, one shipbroker contact told The Loadstar his desk was “going crazy” with enquiries from carriers requiring prompt feeder tonnage.

“They are looking for anything that floats, up to panamax (4,000 teu) size, mainly for the Med, but also for the north continent and Asia,” said the contact.

The broker added: “We normally regard this period as pretty dead and concentrate on negotiating extensions on current charters, but this year it has gone berserk, thanks to the Houthis.”

Braemar confirmed the positive outlook for containership owners. It said: “Despite the upcoming holidays in the Far East, it appears that the frequency of fixings will remain elevated, with potential further adjustments on the horizon.”

Elsewhere, maritime analyst Maritime Strategies International said it expected to see time-charter rates for container vessels rise further during the first quarter. And thereafter, it anticipated, charter rates would “remain above current levels in Q2 as liners plug holes in their networks, cater to additional transhipment and, in some cases, take advantage of higher freight rates”.