Freight rates are continuing to spiral downwards with stark drops being experienced alongside an increase of short term spot deals for temporary tonnage, reports HKSG Media.
Quoting the London shipbroker firm of Clarkson, HKSG Media says earnings for midsize container ships of 3,500-TEU is down at $10,500 a day from $17,500 in October, and 2008’s average of $26,125 and even further from 2005 when charter rates topped $38,000 a day for a panamax ship.
“Smaller vessels are in similar decline with a 1,100-TEU ship on a 12-month charter currently earning $4,770 a day, down from over $9,000 in early October,” reports the Hamburg Shipbrokers Association. Before the market plunge a 2,500-TEU vessel earned a daily rate of $8,185 a day against $25,074 in May 2008.
Newark’s Journal of Commerce meanwhile reports that idle charter containerships have reached 200 with more expected following news of a possible redelivery from CMA CGM of 60 vessels adding to an overflowing tonnage in the coming months. – source HKSG Media