American carrier Pasha Hawaii has teamed with wholesaler Costco to make some big plays in the red hot container charter market.
According to Braemar ACM, Pasha Hawaii backed by Costco secured multiple vessels from the market over the past week, outbidding any other operator and establishing new historical heights.
Among confirmed ships taken by Jones Act carrier Pasha Hawaii is the 2,800 teu ship Carpathia, owned by MPC Container Ships, and fixed for three years at $42,000 a day in a contract that starts in September. In total, brokers link Pasha Hawaii with seven charters for ships ranging in size from 2,100 to 3,500 teu with most taken on a three-year basis.
Splash reported last September on how Costco, the fifth largest retailer in the world, had emerged as one of an increasing number of American brands on the high street to attempt to take shipping matters into its own hands. Costco revealed four months ago it had chartered in three ships and rented thousands of containers to shift around 20% of its Asian imports. The ships range in size from 800 to 1,000 teu in capacity. The Pasha Hawaii news unveiled today is in addition to these earlier chartering moves by Costco.
Pasha Hawaii’s aggressive move in the 2,000 to 4,000 teu size range will leave other operators having potential difficulties in securing replacement tonnage, Braemar ACM suggested.
Other eye-catching charter deals concluded in recent days include Italy’s RIF Line extending its lease of the 1,809 teu Green Ocean for another six months at $110,000 a day. RIF Line entered the Asia – Europe tradelane last year.
“The current market dynamic is expected to last well into 2022 and possibly the full year,” Braemar ACM stated of the boxship charter market, which is fast approaching the all-time highs experienced two months ago.
Tonnage supply is short for the rest of the year
“Tonnage supply is short for the rest of the year and charterers will have to consider smaller tonnage than what they were originally looking for,” stated the latest report from the compilers of the New ConTex chartering index.
“All indications this week point towards a continually firming market with demand outweighing supply in every sector,” Clarkson Research Services noted in its most recent weekly report published in Friday.
“Logistics and freight-forwarding companies have continued to seek short-term charters in any size they can, and in some cases they are actively seeking longer periods too,” Clarksons noted.
The six- to 12-month charter rate assessment for a 4,400 teu ship rose 2% week-on-week to set a new record of $109,000 a day, while Clarkson’s Containership Charter Rate Index also rose 2% week-on-week to stand at 388 points, the highest level since the start of November 2021.