News / Shipping lines are sub-letting tonnage to profit from firm charter market

Hyundai Singapore photo: VesselFinder

Charter rates continue to defy the freight market, with HMM sub-letting a chartered vessel to MSC for a rate three times what the South Korean carrier is paying.

According to Linerlytica, at the start of this month, the 2006-built 6,765 teu Hyundai Singapore, which HMM chartered from Navios Maritime Partners for $21,350 a day until December 2028, has been re-let to MSC for $65,000 a day for a year.

Prior to that, HMM had fixed Hyundai Singapore to OOCL for $28,500/day for an 18-month period to May. The ship is likely to be deployed to the Asia-Europe lane.

Shipbrokers said the charter market remained tight for the time being, even as transpacific rates have lost their momentum due to excess capacity.

MB Shipbrokers said: “Demand is still apparent for post-panamax tonnage, and the liner operators continue to consider and negotiate positions coming open well into 2026.”

Linerlytica alluded to the relentless port congestion in North Europe, with ships waiting up to seven days in Rotterdam and Antwerp and three days in Hamburg, steadying Asia-North Europe freight rates.

The consultancy said: “The worsening port congestion has helped absorb some of the surplus ships.”

Meanwhile, ONE has also taken CPO Holding’s 2005-built 8,073 teu Conti Cortesia, that was initially fixed to MSC last month, but this fixture was done on private terms.

Also fixed on private terms was the 2007-built 5,888 teu Bremen Belle, which was chartered to Maersk. The Danish line also extended its hire of Costamare’s 2013-built 4,957 teu pair Megalopolis and Marathopolis for two years.

CMA CGM was reported to have chartered the 2014-built 5,466 teu Stephanie C from Danaos soon after the ship came off a three-year charter to Asyad Shipping.