container ships circle © Raducomes
© Raducomes

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…

To read the full story, please click here.

Comment on this article


You must be logged in to post a comment.

    Topics