Five Turbulent Years in the Container Ship Charter Market: Analysis of the Hamburg Index
SEA NEWS– In the maritime transport industry, container ship time charter rates are considered one of the key indicators for assessing market conditions. According to data published in the Hamburg Index©, container ship charter rates experienced significant fluctuations from 2019 to 2024. This report examines the trends in charter rate changes, contract durations, differences between vessel types, and analyzes monthly data from 2023 and 2024.
Charter Rate Trends (2019–2024)
Over the past five years, container ship charter rates have undergone dramatic changes. In 2019 and 2020, rates remained relatively low and stable. However, starting in 2021, there was a significant surge, peaking in 2022 when charter rates for some vessels more than doubled. This rapid growth can be attributed to increased demand in maritime transport and the impacts of the COVID-19 pandemic, which disrupted global supply chains and heightened the need for container ships.
In contrast, 2023 and 2024 saw a relative decline in rates, reflecting a market correction following the sharp growth of previous years. This decrease may be due to improvements in supply chain conditions and an increase in the availability of vessels in the market.
Changes in Charter Durations
Charter durations also saw notable shifts during this period. Generally, longer contracts have been observed for larger capacity vessels. For example, ships with a capacity of 6,000–7,000 TEU (Twenty-foot Equivalent Units) had an average charter duration of 14 months in 2019, which increased to 25 months by 2024. This trend reflects shipping companies’ preference for long-term contracts when leasing larger vessels.
Differences Between Gearless and Geared Vessels
Container ships are broadly classified into two categories: Gearless (without onboard cranes) and Geared (equipped with cranes). According to Hamburg Index data, Gearless ships typically command higher charter rates compared to Geared vessels. This difference is due to the greater capabilities and operational flexibility of Gearless ships, making them more suitable for longer routes and ports with limited infrastructure.
For instance, in 2024, the charter rate for a Gearless vessel with a capacity of 1,200–1,400 TEU was around $20,962, while the rate for a similarly sized Geared vessel was significantly lower. This disparity highlights the technical and operational advantages of Gearless ships in the maritime transport market.
Vessel Capacity and Charter Rates
Vessel capacity is a key factor in determining charter rates. Larger ships, such as those with a 6,000–7,000 TEU capacity, generally command higher rates. For example, in 2024, the average charter rate for a 6,000–7,000 TEU vessel was $52,390, compared to $20,962 for a 1,200–1,400 TEU ship.
However, larger vessels also tend to have longer charter durations, indicating that shipping companies prefer leasing bigger ships for extended periods to avoid the additional costs associated with frequent vessel changes.
Monthly Analysis for 2023 and 2024
Monthly data from 2023 and 2024 indicate a relative decline in charter rates compared to the peak levels of 2021 and 2022. For example:
- 700–799 TEU vessels: Charter rates dropped from $24,514 in 2022 to $16,133 in 2024.
- 6,000–7,000 TEU vessels: Rates decreased from $92,846 in 2022 to $43,920 in 2024.
This decline reflects a market correction after the rapid growth observed in previous years. Additionally, charter durations remained relatively stable during this period without significant fluctuations.
Review of Specific Vessel Categories
- 1,200–1,400 TEU Vessels:
The charter rate has remained stable at around $20,962 over the past five years, with an average charter duration of 10 months. - 2,000–2,299 TEU Vessels:
Charter rates increased from $9,602 in 2019 to $24,938 in 2024, while charter durations rose from 5 months to 14 months. - 6,000–7,000 TEU Vessels:
Charter rates grew from $25,505 in 2019 to $52,390 in 2024, with charter durations increasing from 14 months to 25 months.
Conclusion
The Hamburg Index data shows that the maritime transport industry has faced significant fluctuations in container ship charter rates in recent years. The surge in demand during 2021 and 2022, driven by the impacts of the COVID-19 pandemic, was a major factor behind these fluctuations. However, the market has shown signs of correction in 2023 and 2024.
Larger and Gearless vessels continue to command higher charter rates and longer contract durations, reflecting the industry’s preference for larger ships and long-term agreements.
Looking ahead, the maritime transport sector is expected to move toward greater stability. However, changes in global demand and economic conditions could still influence this trend.
Note: You can download statistical tables from the provided links.
