NEWS: The Loadstar - New Tonnage Threatens Box Ship Charter Market

The Loadstar

 

Until recently the mid-size and large containership charter market has been relatively sheltered from the downturn in liner shipping, but a maritime consultancy says it believes a “material decline in charter rates is on the cards”. In its July Horizon report, Maritime Strategies International (MSI) says it expects the erosion of daily hire rates and reductions in time periods that has already impacted charter party agreements for small containerships is about to spread to bigger vessel fixtures.

“An important reason for this – apart from the overall sluggish cargo demand – is that, as the avalanche of very large vessels will be hitting the water, numerous midsize vessels will be cascaded from the main lanes to other routes that are typically served by smaller units, requiring lower-tier trades to accommodate displaced assets on an increased scale,” said MSI.

Read more here. . . New Tonnage Threatens Box Ship Charter Market