The positive momentum in the container market continues with the mid-June rate hikes sticking without rollbacks in the strongest rate ascent since the Red Sea diversions started at the end of 2023. Carriers are gearing for another major rate hike in July with increases as high as $5,000/feu on certain routes. Cargo demand is now clearly outpacing the availability of vessel slots with the peak season in full swing coupled with the strong growth of cleantech exports out of China. Containership supply remains very tight with port congestion continuing to take away effective supply as capacity at anchorages rose to 3.4m TEU last week.
Only 9 containerships have departed from the Persian Gulf after the Iran-US peace deal was signed on 17 June, including 6 Iranian ships. The slow pace of evacuations still leaves more than 50 containerships stranded in the Gulf due to uncertainty over Iran’s terms for transit. 2 Iranian linked ships of over 6,000 teu were scrapped in the last 2 weeks, marking the largest containerships to be commercially scrapped since 2020.
Johnson Leung
Cleantech exports from China driving container demand growth
Total Chinese exports of cleantech products have increased by 42% in the first 4 months of this year and has been the key driver behind the strong container cargo demand growth this year. Although exports of solar PV and batteries were negatively affected by the removal of government tax rebates from 1 April, this has not dampened total cleantech demand with exports of Chinese EVs continuing to make strong gains.
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