Panamax container ship values have been rising for months but there is still time to secure a bargain, LISW delegates told
Speaking at the 12th Annual Capital Link Shipping & Marine Services Forum held during London International Shipping Week (LISW), VesselsValue’s chief operating officer Adrian Economakis provided a glimmer of hope for container ship investors.
He was taking part in the container ship panel. When asked about forthcoming values in the sector Mr Economakis stated that the value lies in the Panamax sector.
“Values in the Panamax sector have risen 18% in the last 12 months to US$20M. This is still a long way below the long-term median of US$29M. According to the VesselsValue forecast model developed with Viamar of Norway, we expect Panamax values to climb by 53% by 2021,” Mr Economakis told the delegates assembled at the Institute of Directors, one of the many venues being used during London International Shipping Week.
According to VesselsValue, the estimate for a five-year-old Panamax container ship is currently US$20.3M. There are 718 Panamax container ships in the container ship fleet. This sector has been overtaken by the new Panamax container ships (also known as Neo-Panamax) which cover vessels built to the beam of the new Panama locks.
For a while, this left the older Panamax in the shade, but the reduced values and greater flexibility encouraged a cascade effect and the old Panamax opened new trades. However, this did not lead to renewed contracting in the sector. Since 2014, only 10 Panamax newbuildings have entered the fleet and the average age of this sector is nearly 13 years old. Nonetheless, this sector still amounts to nearly 15% of the current container ship fleet.