FILE PHOTO: Container ships wait off the coast of the congested Ports of Los Angeles and Long Beach in Long Beach, California, U.S., October 1, 2021. REUTERS/ Alan Devall/File Photo
There’s been a lot of speculation about when and how fast the container shipping market would return to pre-pandemic norms. Today there is more hard data indicating the pandemic-fueled bull has run its course.
The HARPEX index tracks pricing in the charter market for container ships on the basis of actual weekly fixtures. It’s published weekly German shipbroker HARPER PETERSEN and provides rate assessments in U.S. dollars for nine classes of ships, based on vessel sizes (again based on actual weekly fixture reports), as well as Harper Petersen’s own market assessment, i.e. the HARPEX (HARPER PETERSEN Charter Rates Index).
The latest HARPEX reading of 3,095 is down a massive 17% from the previous week, with declines recorded in all nine classes of ships. Pulling the chart back a bit, you can see charter rates have now fallen by about 33% from the HARPEX’s all-time high reading of 4,586.25, which was recorded as recently as April.
HARPEX reading for 16 Sep 2022. Credit: HARPER PETERSEN
As you can see in the chart above, the average reading over the last 24 months is 2,941.81, so charter rates are still slightly above the 24-month average. While the chart shows a minimum reading of 678.40 around September 2020, the HARPEX actually hit a pandemic low of 412 points a few months earlier in June 2020. So comparing those low values with the latest reading, the market is still well above where it was early on in the pandemic.
The decline of containership charter market rates have no doubt lagged the collapse of container spot rates. According to Drewry’s weekly composite World Container Index, spot rates have now fallen 29 weeks in a row, with the latest reading of $4,942 per 40-foot container 52% below the peak of $10,377 reached in September 2021. So it seems the container ship charter market is now starting to catch up to declining spot rates, considering the HARPEX continued to show gains into the Spring, and overall weaker sentiment in the market.
With all signs pointing to a softening market in the months ahead, it seems the container shipping’s pandemic-fueled bull run has indeed run its course. The question now is how far will the market fall before finding a new post-pandemic bottom?
The number of large ships lost worldwide reached a record low in 2022, according to Allianz Global Corporate & Specialty SE (AGCS) Safety & Shipping Review 2023. However, despite this...
A fishing vessel has sunk after colliding with a pilot boat on the James River at the Port of Virginia on Tuesday morning. The U.S. Coast Guard says it was...
A joint study looking into the operational efficiency of Norsepower’s Rotor Sails has found significant fuel savings when combined with optimal weather routing. For the study, Norsepower worked with leading...
19 hours ago
Total Views: 1863
Sign Up Now for gCaptain Daily
Just enter your email and get hot news every morning
SIGN UP
Get the latest gCaptain articles and breaking news
Sign up for gCaptain Daily
Get the latest gCaptain articles and breaking news
We use cookies on our website to give you the most relevant experience. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
{"Tags":["Container Shipping","harpex"],"Categories":["Shipping"],"Excerpt":"There’s been a lot of speculation about when and how fast the container shipping market would return to pre-pandemic norms. Today there is more hard data indicating the pandemic-fueled bull..."}