Greek tonnage providers secure firm rates as feeders dominate charter market

Braemar’s recent weekly report highlights that feeder tonnage continues to exhibit the highest activity levels, largely due to its abundant supply compared with larger vessels.

MB Shipbrokers notes vessels ranging from 1,600 to 1,800 TEU are experiencing decent demand. Analysts add, “Most liner operators prefer short-term contracts, even at a slight premium.”

In this active market, Greek-owned vessels are prominent on chartering boards.

Minerva Marine, led by Andreas Martinos, has secured a charter contract for 1,844-TEU newbuilding Little Athina with Tailwind for 90 months. Braemar, which disclosed the fixture, estimates the daily charter rate at US$34,000, describing it as firm. Tailwind is a subsidiary of the German retailer Lidl.

Eastern Mediterranean Maritime (Eastmed), backed by Thanassis Martinos, has also been very active recently. The Greek owner has opted for longer charter periods for three vessels in its fleet. According to Braemar and MB Shipbrokers, 1,705-TEU San Lorenzo, built in 2014, has been chartered to OOCL for 20-25 months at US$18,000 per day.

Additionally, France’s major liner CMA CGM has reportedly chartered San Giorgio (1,756 TEU, built in 2013) and Santa Loukia (1,714 TEU, built in 2015) for 12-14 months at prevailing market rates of US$25,000 per day. Notably, San Giorgio previously earned US$10,850 per day under a shorter contract of 3-6 months.

MB Shipbrokers points out older vessels are concluding contracts in the low US$20,000s for similar durations.

Stable market

Recent weeks have seen suggestions of a slowdown in the container vessel charter market. However, Braemar disagrees, attributing the lower fixing activity to limited tonnage availability.

“The market has remained steady across most segments and regions, with charter rates holding firm,” Braemar says. “Recently, a few vessels have moved into prompt positions, and some sizes are experiencing a slight decline in obtainable periods and charter rates," Braemar adds. However, analysts emphasise this trend is not alarming, and owners are not expressing significant concern as the levels being fixed remain healthy.

Despite the lack of fresh fixtures and some market observers attempting to downplay the market, stability remains the key theme, MB Shipbrokers notes. “It is worth noting that back in April, a Panamax could be fixed for two years in the low US$20,000s, whereas today it commands approximately US$10,000 more for a three-year term”, MB highlights. The brokers add, “We continue to see demand across all tonnage segments and anticipate stable conditions for the remainder of the year.”

A key indicator of market strength is the Freightos Baltic Index (FBX). The FBX stood at US$1,523 at the end of August 2023. The latest report shows a significant increase, with the index now at US$5,486.

However, Braemar points out these strong numbers are still far from the record highs observed between late 2021 and the first half of 2022. “We may not see such levels again in our lifetime,” analysts conclude.