News / Feeder-buying frenzy could see charter rates 'tank' in the new year

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More small ship acquisitions by mainline carriers could “tank” charter rates for panamax-size vessels next year, claim sources.  

Maritime consultancy Braemar reported today on rumours that Geneva-headquartered carrier MSC has concluded a deal for three 2005-built panamaxes and one 2,700 teu vessel from Asian owners. 

They are said to be the 5,028 teu Antwerp Bridge, 4,800 teu Grace Bridge, and 4,738 teu Beijing Bride, plus the 2,762 teu Port Klang Voyager. Braemar noted that pricing details hadn’t been disclosed.  

And it added: “Enquiry levels for newbuilds remain firmly elevated, and a number of discussions are ongoing. As the year draws to a close, those hoping for a quiet Christmas and New Year holiday are likely to be disappointed.”

This continued purchase activity could be a positive indication for NVOCCs [non vessel-operating common carriers] that lower charter rates are on the horizon.  

Shipping executive and cargo broker Hans-Henrik Nielsen told The Loadstar NVOCCs could see charter rates “tank”, by up to 50% for anamax-size vessels and below, next year. 

“Given that most MLOs [main line operators] have ordered their own feeder vessels from shipyards, it will be a year of change for tonnage operating in trades normally using max-panamax size and below, vessels around 1,500-4,000 teu,” he said. 

“The combination of falling freight rates and MLOs operating more of their own tonnage, and less chartered, it is logical to assume that operators would return some chartered vessels,” Mr Nielsen added.  

But Braemar highlighted that, with “so many variables” in the air for 2026, “it is anyone’s guess what the new year will bring”.  

“As we have seen repeatedly in recent years, the market often develops quite differently from expectations, with the occasional surprise event along the way,” the analyst warned.  

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