News / Lack of free tonnage keeps charter market insulated against freight rate falls

A Hoken Credit VesselFinder.

While a softening in consumer demand has weakened global freight rates, the containership charter markets are largely insulated, due to the absence of open tonnage and the duration of time charters.

Although there are signs of the red-hot charter market cooling, particularly in the smaller sizes, and some loss of appetite for multi-year fixtures, MSI’s May Horizon report indicates no immediate signs of major corrections.

Containership owners have reported substantial charter hire backlogs, stretching into 2024 and beyond, mostly at fixed daily hire rates ...