Alphaliner: Panamax Exodus Set to Continue

Over 100 more classic Panamaxes would need to be scrapped in the coming months to re-balance supply and demand, and reduce the total pool to less than 470 units, compared to 670 units four years ago, according to Alphaliner.

Only such a drastic reduction could elevate rates from their current all-time lows of USD 4,200 – USD 4,500 per day, with positive side effects on the 2,700 – 3,800 TEU size bracket as well.

Hard decisions have to be taken, such as scrapping ten-year-old ships on the eve of their second Classification Special Survey. Since many cash-short owners can’t afford the survey-related costs, such vessels are being laid up, sold for scrap, or sold to bargain buyers at distressed prices.

Since the opening of the new Panama Canal locks on 26 June, no fewer than 120 classic Panamax ships, referring to vessels of 4,000-5,300 TEU on a 13 row/32.30 m beam, have been displaced from trans-Panama routes.

“The exodus is set to continue, with a further 30-40 classic Panamaxes to be removed from the trade over the coming months,” Alphaliner said, adding that the total redundancies of vessels in this size range are expected to reach 150-160 units by the end of the first quarter of 2017.

Non operating owners (NOO) bear the brunt of these redundancies, as carriers keep re-delivering charter vessels at an unprecedented pace. As a result, NOO units form the bulk of the 4,000-5,300 TEU vessel idle pool. In spite of 50 sales for scrap so far this year, the count of unemployed classic Panamax ships currently reaches 96 units, 30 of which anchored at long term lay-up spots in Asia.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2018 >>
MTWTFSS
28 29 30 31 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 1

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

The 27th World Gas Conference

The 27th World Gas Conference is the leading global industry event and is the definitive gathering of influential leaders, buyers and sellers, policy-makers and experts from around the world.

You will hear critical business insights and lively debates on the most topical issues facing the global gas industry today and in the future.

From 25-29 June 2018, Washington DC is expected to host 12,000 attendees, 500 speakers and 350 exhibitors representing, more than 600 companies from 100 countries.

Presented by the IGU, this is the largest and most high-profile gas event that is conducted by the industry for the industry.

Read More

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >