Supply-chain concerns eager to secure sailing certainty are digging deep, very deep, to mitigate against ocean freight challenges, pushing the price of vessel chartering through the roof – literally.
According to cargo carrier portal Alphaliner, the market is currently dominated by “short employment” with some ships being chartered at a cost of $200 000 a day.
And although more conventional longer-period charters are still the norm, freight rates spiking by as much as 128% (see related story: https://tinyurl.com/tp4fjnjy) have resulted in increased interest in independent charters and vessel purchases.
Among other revelations, it was reported recently that global furniture retailer, Ikea, had joined the likes of Walmart and Home Depot by ordering newly manufactured own-branded containers as it moved closer to chartering its own vessels (see related story: https://tinyurl.com/37xhxzee).
In the latest short employment development, Athens-run liner Cape Shipping has put a six-year-old vessel on the market for $125 million.
When it acquired the 6 865 TEU in 2015, it paid $58 million for the vessel.
Considering that the vessel in question, the Cape Chronos, is expected to be ready for delivery by February next year, and that it’s reported daily charter rate will be $200 000 a day, it seems clear that the Covid-related upheaval in the ocean freight supply chain is nowhere near ending.
Elsewhere, the price that shippers are willing to pay for sailing certainty is also in evidence, with Chinese carrier CU Lines opting to pay a daily charter fee of $155 000 for the Northern Vivacity.
The 2 751-TEU vessel will be short employed for a period of six months.
The decision comes as CU aims to expand out of domestic service into the highly competitive and in-demand market for Transpacific supply chain.
Splash247 quoted Alphaliner saying: “Carriers should … not expect any weakening in the charter market any time soon, and are left with the choice of pricey and long-term charter commitments, or alternatively the purchase of tonnage.”
