Panamax Container Shipments Rebounded

- Feb 26, 2018-

The once-sluggish Panamax container ship market has picked up last year with a marked increase in the total volume of transactions and the value of ships.


The VesselsValue study shows that the monthly trading volume of 3000TEU-5000TEU classic Panamax container ships reached its peak in 2017. "At the beginning of 2018, the market activity weakened. At present, the price of a 10-year-old Panamanian vessel is about 15.74 million U.S. dollars, far behind the 18.32 million U.S. dollars five years ago and 37.13 million U.S. dollars 25 years ago. "glenflange


VesselsValue found that a 5-year-old 4275TEU Panamax doubled its price to $ 15.7 million in 2017. Navios Maritime Containers is a major buyer, although some ships are diverted from other companies under the Navios Group, which previously purchased from German shipowners or banks such as Rickmers Maritime. "There are many other deals in 2017, with buyers from Greece, Norway and the United States occupying the top three in the Panamax market."


Driven by the charter rates, the volume of ships recovered after the decline in early 2016, and the reasonable size of the ship made the remaining Panamax ships highly rewarded, as some of these smaller trade hub ports still require them. VesselsValue pointed out that "higher returns support the value of assets, especially Panamax ships aged 5 to 10 years."glenflange


In addition, the lack of newbuildings on the sector means that capacity is unlikely to increase again. At the beginning of this year, there was no new ship order of 3000TEU-11000TEU.


In spite of this, the Panamanian vessels are still facing difficulties, that is sweeping the entire container shipping market continued low prices. VesselsValue said, "With the rise in Panamax rates and the loss of new orders, the value of assets is likely to rise further, as was the case in 2014 and 2015, and the current rental rates are likely to support the continued rise in value "


Earlier this week, Hyundai Merchant Marine said it will launch a new Asia-Europe route using 10 4,700 TEU Panamax vessels. But a business manager at a rival company questioned the effect of the move, saying that Panamax did not have the economic advantage on the main routes. The HMM will deliver a series of new 23,000TEU vessels by 2020, a time coinciding with the termination of the 2M agreement.