Containership’s Surge: When Will It End
As a range of container ship charter indices reach their highest ever levels, the inevitable question must be, how long can this bull run last? Container ship charter rates have reached highest ever levels across a broad range of sizes with Howe Robinson’s container charter index edging up further this week, to another record of 1571.5. According to the broker’s second quarter container charter market review, “doubters have questioned the sustainability of the charter market since it started to move upwards in January 2002”. In that time, its index has spiraled by almost 250% - from 450.
Containerships: When Will One Engine Not Be Enough?
There is certainly no let-up yet in the containership ordering spree as charter rates scale new heights, carriers continue to report record results. The Howe Robinson Container Charter Index has climbed to a new record of 1588.4, up by just over 252% since its January 2002 low point of 451. Records are being broken on a weekly basis as liner companies extend their investment programs, ordering new and ever larger ships many of which will not now deliver until 2007 or 2008. Among leading lines believed to be contracting or at least discussing new tonnage in recent days are CMA CGM, Evergreen, Mitsui OSK and Orient Overseas Container Line.
