Subscribe to our Mailing Lists (It's free!)
Friday, July 11, 2025
SAFETY4SEA
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    IMO piracy

    IMO Piracy Report: Twenty five incidents during May 2025

    Dryad Global

    Dryad Global: Geopolitical tensions continue to shape maritime landscape

    ireland drug seizure

    Ireland’s largest drug smuggling plot leads to eight men in jail

    limpet mines tankers

    Greek tanker fleet boosts security amid limpet mine fears

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    friendship

    Exploring the human need for friendship: A lifeline at sea and on shore

    neck pain

    Neck pain: A growing health concern for maritime workers

    Book Review: Building leaders the MMMA way

    Book Review: Feel grounded and think positive in 10 simple steps

    time

    Stay SEAFiT: Time is non-renewable – invest it wisely

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    BIMCO FuelEU Maritime Regulation

    EU issues low-carbon hydrogen fuel standards

    clean air act

    California updates ballast rules for water from low salinity areas

    biofuels

    India’s DGS issues biofuel bunkering guidelines

    biofuel

    Companies sign deal to advance crude lignin oil biofuel

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    floating data centres

    New partnership to develop floating data center on retrofitted vessel

    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    autonomous navigation

    New deal aims to advance autonomous navigation technology

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    AMSA fine

    NorthStandard: Tips to avoid pollution fines in Turkey

    OCIMF

    OCIMF Annual Report 2025: SIRE 2.0 a welcome change for the industry

    USCG

    ABS PSC Report Q1 2025: 526 total vessels detained

    paris mou lists

    Paris MoU 2024 Performance lists

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    Panama Canal

    Panama Canal reports increase in transits despite dry season

    UNCTAD

    UNCTAD: Global trade endures policy changes and uncertainty

    Eternity C

    Watch: Eternity C sinks in the Red Sea following Houthi attack

    newbuildings xclusiv shipbrokers

    Xclusiv Shipbrokers: Newbuilding momentum slows sharply in 2025

  • Columns
    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    NorthStandard: Data sharing to drive technology and improve crew wellbeing

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    Trending Tags

    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    IMO piracy

    IMO Piracy Report: Twenty five incidents during May 2025

    Dryad Global

    Dryad Global: Geopolitical tensions continue to shape maritime landscape

    ireland drug seizure

    Ireland’s largest drug smuggling plot leads to eight men in jail

    limpet mines tankers

    Greek tanker fleet boosts security amid limpet mine fears

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    friendship

    Exploring the human need for friendship: A lifeline at sea and on shore

    neck pain

    Neck pain: A growing health concern for maritime workers

    Book Review: Building leaders the MMMA way

    Book Review: Feel grounded and think positive in 10 simple steps

    time

    Stay SEAFiT: Time is non-renewable – invest it wisely

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    BIMCO FuelEU Maritime Regulation

    EU issues low-carbon hydrogen fuel standards

    clean air act

    California updates ballast rules for water from low salinity areas

    biofuels

    India’s DGS issues biofuel bunkering guidelines

    biofuel

    Companies sign deal to advance crude lignin oil biofuel

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    floating data centres

    New partnership to develop floating data center on retrofitted vessel

    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    autonomous navigation

    New deal aims to advance autonomous navigation technology

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    AMSA fine

    NorthStandard: Tips to avoid pollution fines in Turkey

    OCIMF

    OCIMF Annual Report 2025: SIRE 2.0 a welcome change for the industry

    USCG

    ABS PSC Report Q1 2025: 526 total vessels detained

    paris mou lists

    Paris MoU 2024 Performance lists

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    Panama Canal

    Panama Canal reports increase in transits despite dry season

    UNCTAD

    UNCTAD: Global trade endures policy changes and uncertainty

    Eternity C

    Watch: Eternity C sinks in the Red Sea following Houthi attack

    newbuildings xclusiv shipbrokers

    Xclusiv Shipbrokers: Newbuilding momentum slows sharply in 2025

  • Columns
    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    NorthStandard: Data sharing to drive technology and improve crew wellbeing

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    Trending Tags

    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
SAFETY4SEA

Low vessel utilisation causes rate decline

by The Editorial Team
August 18, 2022
in Shipping
newbuildings

Iimage hereabove is being used for illustration purposes only Credits: Shutterstock

FacebookTwitterEmailLinkedin

Sea-Intelligence looks at the development of nominal vessel utilization, as this is a key parameter in gauging the strength of the market.

Even though demand grew by 0.6% Y/Y in June, it doesn’t change the fact that it has been on a downwards trend ever since it spiked in peak season 2020.

The more pertinent question therefore, is how demand growth matches up against deployed capacity. A declining demand trend can be offset by a declining injection of capacity, especially in an environment where port congestion leads to significant vessel delays, and in turn results in capacity removal

says Sea-Intelligence, which explains that “when we look at capacity deployment on the major East/West trades, we can see that while demand growth is slowing, capacity growth is increasing at the same time.”

RelatedNews

VLCC insurance jumps as freight rates escalate due to tensions

BIMCO: OPEC’s crude tanker loadings jump 24% week-on-week

For Transpacific, the sharp drop in May was sustained in June as well, with vessel utilization around the 89% mark. Earlier, Sea-Intelligence had showed a correlation between vessel utilisation and spot rates on the Transpacific.

Basically, once utilisation gets into the 90-95% range for the Transpacific, it effectively means all capacity is fully utilised and spot rates increase dramatically.

However, now that are 2 consecutive months where utilisation is below 90%, it is clear the market is no longer at a point which can sustain the extremely high spot rates.

We also see a similar case on Asia-Europe and Transatlantic as well

The bottom line is that the average vessel utilisation on the major head-haul trades continues to be below the threshold which fuelled the record rate peaks over the past 1½ years. As a consequence, spot rates will continue to decline.

Low vessel utilisation causes rate declineLow vessel utilisation causes rate decline
Low vessel utilisation causes rate declineLow vessel utilisation causes rate decline
Tags: freight rates
Previous Post

FMC seeks comments on impact of supply chain congestion

Next Post

Netherlands issue first hydrogen bunkering license

SUGGESTED FOR YOU

UNCTAD trade
Shipping

UNCTAD: Trade policy uncertainty reshapes global trade patterns

May 6, 2025
BIMCO
Shipping

BIMCO Container Market Outlook: US policy fuels market uncertainty

March 27, 2025
market
Shipping

Xeneta: Ocean container freight rates to fall further in February

February 3, 2025
BIMCO
Opinions

Xeneta: Return of container ships to Red Sea will bring chaos

January 23, 2025
DP World
Shipping

DP World deputy CEO says freight rates could come crashing down

January 23, 2025
newbuildings
Shipping

Drewry: Spot rates to decrease slightly due to increased capacity

January 20, 2025

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Explore more

No Result
View All Result
MARITIME EVENTS

Explore

  • Safety
  • SEAFiT
  • Green
  • Smart
  • Risk
  • Others
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

Useful Links

  • About
  • Disclaimer
  • Editorial Policies
  • Advertising
  • Content Marketing
  • Contact

© 2025 SAFETY4SEA

No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA

Manage your privacy
We use technologies like cookies to store and/or access device information. We do this to improve browsing experience and to show (non-) personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Manage options
{title} {title} {title}
No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA