The last five years have been shown to be an outstanding cycle for container ship charter rates, with levels exceeding the last bull run in the years prior to the 2008 global financial crisis, according to Clarksons.
The diversions of container ships (on the Asia-Europe route) from the Suez Canal to the Cape of Good Hope in late 2023 have generated more demand for tonnage due to lengthened sailing times.
Clarksons said: “Rates surged through 2024 and have generally continued to edge higher this year against a backdrop of solid demand and tight charter vessel supply, with much of the chartered fleet now ‘fixed forwards’. This has come despite a backdrop of softer (albeit volatile) freight rates, macroeconomic and geopolitical uncertainties and concerns over underlying sector fundamentals.”
The UK brokerage’s Containership Timecharter Rate Index has climbed by 11% since the start of 2025, and now stands at nearly three times its start-2024 level, with sharp gains seen across the size segments.
A 1,000 TEU ship now commands daily hire rates of US$16,750 for six to 12 months up by 140% since early 2024, while it costs US$54,500 per day to charter a elderly 4,250 TEU ship, a 200% increase in the same period.
Clarksons continued: “Viewed collectively, the past five years clearly marks a standout, extended period of market strength which has outperformed the mid-2000s run.
“Though the boom in charter rates during the Covid-19-fuelled surge in 2021-2022 remains unsurpassed, this current cycle is poised to be one of the strongest ‘boom’ periods on record for the containership timecharter market.” Rates today are currently running well above the highs of previous ‘bull markets’, including the extended period of heightened rates seen during the mid-2000s (2003-2008).
Clarksons’ Containership TC Rate Index was running at 199 points by early December, 70% above the average seen during the 2000s ‘super-cycle’ and 150% above the pre-2020s (1993-2019) average.
