Neo-Panamax Container Market Looks Better

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  • 8,000 TEU design Neo-panamax vessels Charter rates, saw increases with 12-month charters being contracted at average daily gross rates of $24,000.
  • The idle container fleet was estimated to represent approximately 3.2% of the current worldwide fleet, a slight uptick from end 2018.
  • The container orderbook remained historically low and was estimated to stand at 12.6% of the current worldwide fleet.
  • Scrapping in the first quarter of 2019 is estimated to have increased to 70,000 TEU compared to 24,600 TEU in the first quarter of 2018.

Neo-Panamax container vessels experienced increased activity during the first quarter of 2019, compared to the fourth quarter of 2018, reports Maritime Logistics Professional.

Increased charter rates

Charter rates for feeder and panamax vessels remained relatively flat due to, the overhang of idle tonnage.

Charter rates for Neo-panamax vessels, especially 8,000 TEU designs or larger, saw marked increases, with 12-month charters being contracted at average daily gross rates of $24,000, pointed out the Greece-based shipping company.

Declined idle container fleet

At the end of first quarter the idle container fleet was estimated to represent approximately 3.2% of the current worldwide fleet, a slight uptick from the end of 2018.

However, the idle fleet has since then declined to an estimated 1.5% of the current worldwide fleet as at the end of April 2019, said the shipping company engaged in the seaborne transportation.

Historical low level orderbook

At the end of first quarter 2019, the container orderbook remained close to historically low levels and was estimated by analysts to stand at 12.6% of the current worldwide fleet.

Non-delivery of new containership capacity expected to be delivered in the first quarter 2019 is estimated by analysts to be 41% in TEU terms.

Scrapping in the first quarter of 2019 is estimated to have increased to 70,000 TEU compared to 24,600 TEU in the first quarter of 2018.

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Source: Maritimeprofessional