Container ship rental rates have now been reduced by about 20% - 30%, depending on the size and capacity of the vessel.
A representative of the East Sea Shipping Company Limited said that the rental price for ships has now decreased by about 20%-30%, depending on the size and capacity of the ship compared to the historical high point a few months ago. The ship size that has been reduced the most is about 1700 Teus ships, the rental price has decreased by more than 30%.
"Along with the drop in charter rates, the number of charter transactions is also decreasing. The market plunge has caused some chartering companies to stop trading to re-survey the market and continue listening," he said. Previously, in the second quarter of 2022, charter rates were at a record high. As revealed by a business, a ship of the same size, if running domestically, costs about 5,100 USD/day, but the same boat is rented abroad for more than 13,000 USD/day.
Currently, many Vietnamese shipping enterprises are still bringing standard container ships to foreign countries or by day charter. It is estimated that about 65% of DWT of Vietnam's shipping is currently on time charter abroad and the remaining 35% of DWT runs domestically.
The charter price is decreasing by 20-30% depending on the capacity of each vessel compared to the peak time.
According to Maritime Gateway, the Harpex index (an index that tracks prices in the container charter market on a weekly basis) has been experiencing a sharp decline in recent weeks.
Specifically, the latest Harpex index is 3,095 points, down about 33% from the all-time high of HARPEX of 4,586 points in April 2022. Even so, the index is still higher than the average over the past two years.
It is expected that the container ship rental price will continue to decrease by another 30-50% in 2023 due to the economic recession that reduces consumer demand for goods.
Analysts, the decline of the charter market is strongly influenced by demand in Western consuming countries. By the end of 2021, the increase in charter rates is due to an increase in demand for goods in these countries. Currently, however, commodity demand is reversing.
Source: Aloha International Logistics
