Fluctuations in Time Charter Rates of Container Ships: From Sky to Ground
SEA News – International Desk – The latest report from the Hamburg and Bremen Shipbrokers’ Association reveals that time charter (T/C) rates for container ships have undergone significant fluctuations over the past five years. The sharp increase in rates in 2021 and 2022, followed by their gradual decline from 2023 onward, provides a clear picture of changes in the maritime transport market.
Market Trends: A Surge Followed by a Decline
An analysis of published data indicates that the surge in global demand during the pandemic, combined with fleet capacity shortages and supply chain disruptions, drove time charter rates to unprecedented levels in 2022. However, as demand declined and new ships entered the market, rates began to trend downward in 2023 and 2024.
Unprecedented Surge in 2021 and 2022
According to experts, 2021 and 2022 marked the peak of the container ship time charter market. The rise in demand for maritime transport, coupled with fleet constraints, pushed charter rates to record highs.
For example, the time charter rate for 3,100–3,500 TEU vessels reached $75,019 in 2021 and surged to $113,437 in 2022. A similar trend was observed for smaller vessels: the charter rate for 700–799 TEU ships, which was around $6,777 in 2020, rose to $20,347 in 2021 and further increased to $24,514 in 2022.
Downward Trend from 2023: Declining Demand and New Ship Deliveries
However, from early 2023, the market gradually entered a correction phase. With a decline in global demand, reduced trade volumes, and an influx of newly built vessels, time charter rates began to decline.
In line with this trend, the time charter rate for 3,100–3,500 TEU ships, which peaked at $113,437 in 2022, dropped to $21,303 in 2023. Similarly, the rate for 6,000–7,000 TEU vessels, which had reached $75,062 in 2021, fell to $58,769 in 2023.
Experts attribute this decline to an increase in new vessel supply, a global economic slowdown, and reduced consumer goods demand. Many shipping lines that signed long-term contracts in 2021 and 2022 faced lower profitability in 2023 and 2024.
Where Will the Market Head in 2025?
An analysis of 2024 data suggests that time charter rates for some vessel capacities have reached a relative equilibrium. While some analysts expect the market to stabilize further in 2025, others believe that a potential increase in global trade volumes could lead to a renewed rise in rates.
Key Factors Affecting the Future of the Time Charter Market:
✅ Global Economic Growth – If demand for maritime transport rises, time charter rates may increase again.
✅ New Environmental Regulations – International restrictions on ship emissions could lead to higher operational costs and the retirement of older vessels, influencing rates.
✅ New Ship Deliveries – If the influx of new ships continues, rates may remain at lower levels.
📌 The container ship time charter market experienced significant fluctuations between 2020 and 2025, from record-breaking highs in 2021 and 2022 to a gradual decline from 2023 onward.
📌 2025 is expected to be a relatively stable year for the industry, but economic developments and new regulations could shift the market’s trajectory.
📌 To mitigate market risks, many shipping operators have adopted long-term contracts and more sustainable strategies.
This report provides key insights for investors and stakeholders in the maritime transport industry, serving as a valuable reference for future contract negotiations.
