The global container shipping market is facing a critical shortage of vessel capacity and skyrocketing freight rates, creating urgent challenges for international trade. As demand for container space surges, major international shipping lines are turning to an unexpected solution: leasing vessels from China's domestic container fleet.
Imagine receiving an urgent cargo order only to discover there's no available container space. This scenario has become a harsh reality for many traders as the international shipping market experiences unprecedented congestion, with booking slots becoming increasingly scarce.
French shipping giant CMA CGM recently leased the 5,060-TEU vessel "Heng Hui 6" from Shishi Hengtong Shipping for 18-20 months at a daily rate of $28,000. Similarly, X-Press Feeders chartered a 1,912-TEU ship from a Chinese domestic operator at $18,000 per day. These deals highlight the extraordinary measures companies are taking to secure capacity.
The rapid rise in charter rates reflects shipping companies' growing desperation. According to industry analyst Linerlytica, despite strong demand, the pool of available vessels remains limited, suggesting freight rates and lease durations will continue climbing. Some domestic operators are even deploying newly built ships specifically for leasing, including a 4,636-TEU container vessel built in 2023 that Global Feeder Shipping chartered for 6-8 months at $30,000 daily.
Industry experts remain optimistic about market prospects, particularly with the anticipated combination of increased shipments and the traditional third-quarter peak season potentially creating an extended high-demand period this year. The current capacity shortage and sustained high freight rates appear to be establishing a new normal for container leasing markets.
This leasing boom not only presents profitable opportunities for vessel operators but also helps maintain smooth cargo flows and supply chain stability. The market's transformation is being driven by shipping companies' refined capacity management strategies and growing demand for domestic vessel charters.
As global markets continue to evolve, the transportation industry faces both new opportunities and challenges, creating a dynamic environment for domestic container leasing markets worldwide. Flexible capacity strategies are proving essential for companies navigating intense competition and unpredictable order surges.
