A UK freight forwarder is paying the highest rate to date to charter a small container ­feedership. Allseas Global Logistics is paying close to $100,000 per day to deploy a 2,000-teu boxship in a new liner service from China to the UK. It believes the charter makes sense in a market where freight rates are soaring, space is short, and containers are continuously being rolled. The Manchester-based com­pany’s liner agency division, DKT Allseas, has taken the 2,034-teu Aisopos II (built 2016) for between 80 and 100 days at about $95,000 per day. The vessel, controlled by Greece’s Capital Ship Management, had come off a three-month charter with China United Lines at $30,000 per day.

“When we first started talking with [the] owner, we were talking $50,000 per day,” said Allseas and group managing director Darren Wright. “They held out, held out and held out — and we ended up at ninety-five.” Allseas wants the vessel to deploy on a fast and direct 30-day service it has initiated from Ningbo on the central Chinese coast to Liverpool, northwest England. Normally, the trades from Asia to northern Europe are the preserve of larger boxships up to 24,000 teu. But congestion in many ports and surging freight rates mean shippers believe they can compete using smaller ships.

Freight rates for UK shipment from China average $15,000 to $16,000 per 40-foot-equivalent unit (feu) after premiums are factored in, according to Wright, compared with regular liner rates of between $17,000 and $20,000 per feu. “We’re still able to offer an attractive proposition for our customers that is less than [the] regular liner rate on spot market,” he said. “And when we say we’ll ship it, we’ll ship it. We won’t roll it three times. It doesn’t deviate, transship, or call at any other port, so you’re not hit with any ­congestion. “We’re almost getting into the transit times that rail can offer, at a fraction of the cost.”

DKT Allseas launched the China Xpress service in March with the maiden voyage of the 12,325-dwt Ronnie (built 2021), a multipurpose (MPP) vessel with capacity for 869 teu. This week, the company announced that it would extend China Xpress into a weekly liner operation until next February. “We’re now pretty much fixed up for vessel through to December, and we hope to continue for as long as the market demands,” Wright said.

Prior to the fixture of the Aisopos II, Allseas had taken MPPs on rolling charters of up to six months. The choice of tonnage was a result of taking what was available in the market. “The MPP vessels worked for availability and the amount of volume that we started out with,” Wright said. “But we’ve gained traction over the past few months; we could probably fill a 3,000-teu or 4,000-teu containership every week or two.” However, the forwarder is unable to take larger vessels due to lack of availability and is limited to smaller containerships. It is also reluctant to take vessels for longer periods because of uncertainty over the freight market. However, it might look at taking the Aisopos II for a subsequent short-term let. “We may well continue with that vessel. We’ve got first option on it. But it will depend on what the market freight rates are,” Wright added.

The entrance of freight forwarders to the freight market is unlikely to worry the liner operators. “We’re small and insignificant to them. We’re not encroaching on their market. We’re just plugging a gap and trying to keep people’s business alive. Otherwise, this cargo wouldn’t be moving,” Wright commented. “We do book on regular liners as well and we’re still struggling with space, we’re still getting rollovers left, right and center. So, we’re not taking cargoes away from those vessels. There’s just too much demand, not enough space and not enough equipment.”

The new liner ­service has been welcomed by Peel Ports, which owns and operates the Port of Liverpool. “The success of the DKT Allseas pioneering service shows there is demand for a direct China to Liverpool service,” said managing director David Huck.