Shipping lines are once again on the lookout for available tonnage on the charter market as transpacific rates soar. However, while shipowners are keen to secure long-term commitments from operators, the lines are hesitant to commit beyond two to three months. This caution stems from fears that the Trump administration could reinstate significant tariffs on Chinese imports when the 90-day grace period ends in early August.
On Friday, the Shanghai Containerised Freight Index recorded the largest weekly gain in transpacific rates. The Shanghai-US West Coast rate surged 58% from the previous week, reaching $5,172 per 40ft, while the Shanghai-US East Coast rate increased by 46%, to $6,243 per 40ft.
MB Shipbrokers reported that in the panamax segment, a few smaller units are under negotiation for periods of up to three years. This aligns with current market expectations and underscores the high demand. With much of the previously available tonnage withdrawn, availability has become increasingly scarce. Shipowners are less willing to repeat previous fixtures, anticipating continued market improvement.
This surge in rates is a result of shippers rushing to front-load goods into the US before potential tariff restoration. Linerlytica noted that shipping lines are scrambling to secure any available suitable vessels. The consultancy highlighted that vessel availability in larger sizes remains very limited, with all open candidates over 4,000 TEU, including relet units, already snapped up or withdrawn.
Forward deliveries have stretched into September, but with little clarity on market direction after the 90-day tariff truce ends in the US, only a few carriers are willing to commit forward at the moment. Several fixtures have been done on shorter periods of two to three months at significantly higher premiums.
For ships in the 4,200-8,000 TEU range, charter rates have increased 37% to 47% year on year, and are now between $50,000 and $85,000 a day. Maersk has taken Safeen Group’s 4,398 TEU Gulf Barakah for three to five months, at $51,000 a day.
Linerlytica added that most of the available capacity is being redirected to the US, where services withdrawn earlier have been reinstated. Additionally, four new services to the US West Coast are being added, along with a host of extra loaders.
