NINGBO MORE KASI TRADING CO.,LTD

Starting to charter Chinese domestic trade container ships

“Even smaller container ships that were originally intended for the Chinese domestic market are finding charterers in such an optimistic market.”

Recently, the freight market has risen sharply, and the shortage of capacity has made some routes burst, and even “one class is difficult to find”, which has driven the rental of container ships to reach the highest point in the market in two years.

 

In order to meet the demand for shipping capacity, some international liner companies have turned their attention to China’s domestic trade container ships.

 

According to foreign media reports, DAFei recently leased Shishi Hengtong Shipping Co., Ltd. (Shishi Hengtong Shipping Co., Ltd.) under the “Henghui 6” ship, the ship capacity of 5060TEU, built in 2004, the lease period of 18 to 20 months, the daily rental of 28,000 US dollars.

 

In addition, Safetrans Line, which focuses on Russian routes, recently leased a Chinese shipping company’s “Wanxingda” ship, built in 1997, for six to eight months at a daily rent of $20,000. At the same time, Anfu Shipping has also leased the China Shipping Company’s “Changshun Jinxiu”, which has a capacity of 2,838 TEU and is built in 2023 for six to eight months at a daily rental rate of US $26,000.

 

X-Press Feeders has leased a 1,912 TEU vessel from a well-known domestic shipping company in China, which was built in 2019 for 3 to 5 months at a daily rental of $18,000.

 

At the same time, the domestic Shipping company also leased one of its 4,636 TEU container ships built in 2023 to Global Feeder Shipping for 6 to 8 months at a daily rental of $30,000.

 

For the current hot container ship charter market, Linerlytica, an industry analyst, believes that the increase in ship rents and charter periods reflects the sharp increase in charter demand from current shipping companies, but the number of ships that can be chartered is limited. “Even smaller container ships that were originally intended for the Chinese domestic market are finding charterers in such an optimistic market.”

 

The data shows that even small container ships below 1,200 TEU have faced strong charter demand in the past three months.

 

Linerlytica believes that while 600,000 TEU of new vessels will be delivered in the next two months, fewer than 10 of these new vessels will be available for charter. The agency expects that the rental of all types of container ships will still rise further.

 

Statistics show that in April this year, a total of 59 vessels of 342,200 TEU were delivered from the shipyard, setting a record for new ship deliveries and new capacity added in a single month. Linerlytica expects the capacity shortage to last until October.

 

For the reasons for the rise in the current round of container shipping market, the performance is generally believed to be affected by multiple factors, the main reasons are that traders concentrated shipments, some Asian port congestion limits effective capacity and the long tail effect caused by the Red Sea crisis.

 

Some people in the industry are even optimistic that traders concentrated shipments superimposed the arrival of the third quarter of the peak season, this year may present a very long peak season, capacity continues to be tight, freight rates are expected to remain at a high level.