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Charter rates stay low as weak demand and overcapacity continue
WEAK demand and the on-going overcapacity trend seen over the past 18 months are persistently holding charter rates back from gaining traction despite the approach of the peak summer shipping season.
Large overpanamax tonnage continues to suffer from a lack of demand. Among the rare deals recorded, Maersk Line fixed the 6,969-TEU Hermann Wulff at US$14,500 for 12 months, well below the $22,000 paid by MSC for a six-months charter of the same ship last August and the $31,000 paid by Maersk a year earlier.
After seven months of idling in the Mediterranean, the 5,551-TEU Hansa Shipping-controlled HS Columbia secured a six to 12 months charter with MSC, at a rate of $12,800, reported Alphaliner.
This is significantly below the $15,000 paid recently by CSAV on two 5,762 TEU vessels for similar periods.
The panamax sector is reasonably active although charter rates continue their uninspiring course. Particularly interesting was CMA CGM extending the charters on two Allseas Marine-controlled 5,078-TEU vessels for four to seven months at $7,500.
MSC again got a bargain in the Atlantic with a six to eight months extension of the Niederelbe-controlled MSC Carouge 4,872 TEU vessel at a low of $6,500.
The 3,000-3,500 TEU segment is lacklustre, with very few deals reported. Cheng Lie Navigation (CMA CGM) extended in Asia a 3,534-TEU ship for six to 10 months at $7,300, and a 3,426 TEU-ship for four to six months, at reportedly a similar price.
The 2,800-TEU sector saw the fixture of the 2,732-TEU, RCL-controlled Sattha Bhum to MSC for 11-13 months at $6,650, whilst CMA CGM extended the sister vessel Alexandra P for six to 12 months at $6,800.
The 2,500 TEU segment is quite busy although this sector is increasingly suffering from overcapacity due to various service upgrades, particularly on the west African trades where carriers now favour larger tonnage.
Among the fixtures recorded, CMA CGM extended the charter of the 2,526 TEU Danaos-controlled Danae C for 12 months at $7,500.
The traditionally busy 1,700 TEU sector is quieter. Among the deals of interest, Arkas Line secured in the Mediterranean the 1,732-TEU Hermann Hesse for two to five months at $7,600, while MSC extended in the Atlantic a 1,661 TEU ship, aged 21 years, for 12 months at a cheap $6,750.
The 1,000-TEU sector is as usual characterised by significant rate differentials between the Asian and Atlantic markets, as illustrated by the Arkas extension in the Mediterranean of a geared 1,145-TEU vessel for three to six months at $6,650, while OOCL extended in Asia a geared 1,118-TEU vessel for three to five months at only $5,300.
Large overpanamax tonnage continues to suffer from a lack of demand. Among the rare deals recorded, Maersk Line fixed the 6,969-TEU Hermann Wulff at US$14,500 for 12 months, well below the $22,000 paid by MSC for a six-months charter of the same ship last August and the $31,000 paid by Maersk a year earlier.
After seven months of idling in the Mediterranean, the 5,551-TEU Hansa Shipping-controlled HS Columbia secured a six to 12 months charter with MSC, at a rate of $12,800, reported Alphaliner.
This is significantly below the $15,000 paid recently by CSAV on two 5,762 TEU vessels for similar periods.
The panamax sector is reasonably active although charter rates continue their uninspiring course. Particularly interesting was CMA CGM extending the charters on two Allseas Marine-controlled 5,078-TEU vessels for four to seven months at $7,500.
MSC again got a bargain in the Atlantic with a six to eight months extension of the Niederelbe-controlled MSC Carouge 4,872 TEU vessel at a low of $6,500.
The 3,000-3,500 TEU segment is lacklustre, with very few deals reported. Cheng Lie Navigation (CMA CGM) extended in Asia a 3,534-TEU ship for six to 10 months at $7,300, and a 3,426 TEU-ship for four to six months, at reportedly a similar price.
The 2,800-TEU sector saw the fixture of the 2,732-TEU, RCL-controlled Sattha Bhum to MSC for 11-13 months at $6,650, whilst CMA CGM extended the sister vessel Alexandra P for six to 12 months at $6,800.
The 2,500 TEU segment is quite busy although this sector is increasingly suffering from overcapacity due to various service upgrades, particularly on the west African trades where carriers now favour larger tonnage.
Among the fixtures recorded, CMA CGM extended the charter of the 2,526 TEU Danaos-controlled Danae C for 12 months at $7,500.
The traditionally busy 1,700 TEU sector is quieter. Among the deals of interest, Arkas Line secured in the Mediterranean the 1,732-TEU Hermann Hesse for two to five months at $7,600, while MSC extended in the Atlantic a 1,661 TEU ship, aged 21 years, for 12 months at a cheap $6,750.
The 1,000-TEU sector is as usual characterised by significant rate differentials between the Asian and Atlantic markets, as illustrated by the Arkas extension in the Mediterranean of a geared 1,145-TEU vessel for three to six months at $6,650, while OOCL extended in Asia a geared 1,118-TEU vessel for three to five months at only $5,300.
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