Clarksons: Old Panamaxes Slowly Fading Away

Image Courtesy: Diana Containerships

The ‘old Panamax’ sector seems to be slowly fading away, falling from 969 units in 2012 to 796 at the start of October, as the fleet is in a steady and perhaps terminal decline, according to Clarksons Research.

Although plenty of ‘old Panamaxes’ are out there battling on, things are only going one way at the moment amid rock-bottom charter rates and record scrapping levels. Clarksons said that if vessel deployment opportunities globally increase, a ‘rising tide’ might even support some of these ships, but in general a decline now appears to have set in.

Designed with Panama Canal transit in mind, Panamaxes became deployed widely and at the start of 2016, 17% were deployed on the Transpacific, mainly through the canal to the US East Coast, but 17% were deployed elsewhere on the mainlanes and 28% on north-south trades.

However, Clarksons said that this may have been the last hurrah for the ‘old Panamaxes’.

In June 2016 the new locks at the Panama Canal opened, allowing much larger ships to transit on the key Asia-USEC trade. panamaxesOver 150 ‘old Panamaxes’ were deployed on that trade back then and today the total is down to about 70.

Slow growth on north-south trades also contributed to the onset of major scrapping, with 55 old Panamaxes sold for demolition this year, and 217 since the start of 2012.

Rates have crashed to levels below those for smaller ships and asset prices have also hit the depths with a 10 year old at USD 6 million, “basically down to scrap value,” Clarksons said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Dec 2017 >>
MTWTFSS
27 28 29 30 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >