Container charter rates have nosedived as weakening demand and default fears hit the wider boxship markets.

The spillover from tumbling freight markets is being felt in the boxship charter market, where rates have dropped by 20% over a week.

Hardest hit has been the smaller feeder sector for 1,700-teu vessels, where charter rates have plummeted.

Six-month periods dropped to $38,523 per day today, a fall of more than $9,000 from the previous week.