Here’s the latest from VesselsValue:
Time charter rates
The Container market has seen an unprecedented increase in rates since the end of 2020. Container 1 year TC rates have surged to extraordinarily new highs with 8,500 TEU values rising to a record 54,000 USD/day for April. This is an increase of 350% since June 2020.
Throughout 2020 the market fell significantly from impacts due to the Covid-19 pandemic. There was a significant decrease in demand as the uncertain circumstances surrounding the beginning of a global pandemic hit the consumer market hard.
Towards the end of 2020 trade started to rebound and since the beginning of 2021 a firm recovery has taken place. A combination of widespread logistical disruption amplified the positive impacts on the markets. A shortage of box availability in Asia had a particularly strong effect and an increase in port congestion has all led to a significant firming in rates.
Speeds
Alongside the increasing rates in the Container sector, we have seen a significant increase in average laden speeds travelled. In this current situation with rapidly increasing rates, vessels are moving faster.
Container speeds hit a five-year low in May 2020 as a result of reduced demand due to Covid, blank sailings and port delays.
Figure 1 shows monthly average speeds since the start of 2019 for all Container vessels. Container speeds and container rates have both been following the same upward trajectory since mid-2020. Container speeds across all types have jumped 5.5% since June 2020, from 13.99 knots to 14.76 knots, with some of the larger types increasing by more…
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