By Arthur Chen

We have heard a unsurprised news in the market recently.  A new short time leased vessel named SSantiago, 15 years history, 5060 TEUs payload, from ship owner Syprus Sealine by daily leasing fee usd 135,000 and one round trip in between Asia and USA takes 45-90 days which cost usd 38,480,000 that is 1/6 of that vessel value.  It means 6 trips to lease out this year equal to the buy a vessel. The rest of the vessel usage shall be free cost and all leasing fee is pure profit gain.  It never happened before.  A vessel no matter new one or used one should take 3-5 years long minimum time to recover from the original purchased cost.  The short term leasing fee has reached averaging 100,000 – 140,000 a day compared to usd 70000 – 90000 in HPL long term leasing fee a day that is almost double high.

Under such crazy ocean market in standard container shipping that every lines do all possible to either lease or purchase new vessels to meet the super high demand in ocean transportation in post covid days. All clients have changed their mind from hesitated accepting sky-high ocean freight charge in April, delayed in shipping out their goods by hoping the ocean freight rate dropped in coming May and June. Never expected there were so many pandemic outbreaks happened again such as Indian covid drastic come back as well as Taiwan, Singapore, Vietnam, Thailand, Malaysia which have different kinds of lock down in places.  Even hard to believe the outbreak in Southern China ( Guangzhou, Shenzhen ) in late May that has serious impacting to Yantian, Chiwan, Sherko, NanSha ports in Southern China too. These sea ports have lock down few days for disinfection and set up strict ban for peoples moving so as truck drivers have to take 2 days PCR report in order to pass the protected seaports.  Manpower shortage and long queue of trucks going to container yards and seaport is a scenery from dawn to dust in Southern China now.    

People both exporters and importers realize they can’t wait for ocean charge downward under such kind mess and American huge demand of consumption for “back to school day” sales is there, plus the social distancing policy shall be calling off by July 4th, containers must move ASAP.  The more earlier vessels sailing from Asia, the more positive to retrieve production value. The peak season has come than usual. In fact, the peak season of ocean transportation has never stopped since 2020 winter till now.

No wonder the currently crazy market ocean charge has been there from USD 7000-9000/40’ Asia/West Coast US; USD 12000-15000/40’ Asia/East coast US. The crazy high rate party is still hosted by all ocean carriers.