Container vessel market sentiment rebounds after April slowdown, says Greek owner

Speaking during Global Ship Lease’s first-quarter earnings presentation, chief executive Thomas Lister noted while market sentiment was strong earlier in the year, activity paused after the 2 April announcements. “Momentum came off a little bit during the course of April,” Mr Lister said.

However, interest and appetite began to rebound as of last week. “Sentiment has followed a very similar trajectory in both the freight and charter markets,” he added. Notably, Mr Lister pointed out while freight rates came under pressure in April, charter rates have remained resiliently high due to the limited availability of tonnage.

When asked about customer interest in extending existing charters, Mr Lister acknowledged several of the company’s vessels had been fixed during the peak of the Covid-era market cycle, and those rates remain “extraordinarily high.” In today’s market environment, he suggested, refixing those same vessels would likely result in lower rates. However, he added, “We are seeing appetite from customers to fix at still very attractive levels.”

Strong financial results

Global Ship Lease reported improved financial performance in the first quarter of 2025, with significant growth in both revenues and charter backlog.

Operating revenues rose to US$191M, up from US$180M in Q1 2024. The company attributed the increase partly to higher charter renewal rates. During the quarter, 19 new charters were added, contributing an additional US$352M in contracted revenues. As of 31 March, total contracted revenues stood at US$1.9Bn, with a weighted average remaining charter duration of 2.3 years.

“We have seen continued demand for our mid-sized and smaller container ships from liner operators as they seek to maximise flexibility in their networks to accommodate changing cargo flows,” said executive chairman George Youroukos.

Net income for the quarter surged to US$121M, up from US$90M in the same period last year. The company also continued to strengthen its balance sheet through strategic divestments.

Global Ship Lease completed the sale of three older vessels – with an average age of over 23 years – generating a total gain of around US$29M. The company currently controls a fleet of 69 container vessels.