Stranded box ships means a boost for charter market
The Strait of Hormuz closure will impact up to 10% of the global container shipping fleet, after hitting 650,000 teu of weekly container traffic in the Persian Gulf.
Linerlytica says in its report today that this will lend support to charter and rental rates for ships and container equipment.
The consultancy said: “Although these account for only 3.3% of total global throughput, the disruptions arising from the reconfiguration of the Strait of Hormuz-related services would affect up to 10% of the global fleet.
“Increased port congestion, tightening vessel supply, and container equipment shortages would push up both freight rates and charter rates in the short term.”
As of yesterday, there were 132 containerships with a combined capacity of 458,000 teu stranded in the Persian Gulf, accounting for 1.4% of the global fleet.
Linerlytica explained: “They form part of the 3.4m teu in total capacity operated on routes passing the Strait of Hormuz, or 10% of the global fleet. A prolonged closure of the Strait of Hormuz would lead to a reconfiguration of these services and result in a short-term tightening in vessel supply and box equipment, as well as increased congestion at Asian ports.”
Amid the Middle East conflict, freight futures for the Asia-North Europe route were heavily traded on the Shanghai International Energy Exchange yesterday, with forward prices surging to their 15% daily upper limit and volumes rising above 100,000 lots for the first time since September.
For the July contract, prices rose to $2,094 per 40ft, up from $1,806 on 13 February, as traders expected freight rates to surge by the time the usual peak period for long-haul shipments comes around.
Linerlytica’s data shows MSC has the highest number of trapped ships, about 100,000 teu, followed by CMA CGM with approximately 80,000 teu.
The situation renders any resumption of Red Sea transits impossible, which will compel shipping lines to continue chartering vessels to meet their tonnage requirements.
Maersk had to reroute the 6,478 teu Maersk Atlanta, which was sailing from North America to the Middle East on the Middle East Container Line service.
CMA CGM has also turned around its ships on the Asia-Med PHOEX and India-US Indamex services. Several smaller carriers including Akkon Lines, China United Lines, Global Feeder Shipping, Kawa Shipping and Pacific International Lines have retained their Red Sea transits in the last three days, but rising security concerns could also force them to review their vessel routes.
