THE shortage of available old panamax containerships has pushed up daily hire rates by 30 per cent.
According to Alphaliner, there is only one idle 4,000-5,299 TEU 'classic' panamax vessel at the moment compared with 100 at the end of 2016.
Since then charter rates have risen dramatically from a low of US$4,000 per day to $14,000, with owners now in a position to dictate their own terms for positioning costs and extension options, reports London's Loadstar.
According to one broker source he had a carrier prepared to offer up to $16,000 a day for a six-month charter.
Large-scale scrapping and an almost empty orderbook for smaller vessels have combined to shift the supply/demand balance in favour of shipowners.
The broker said his phone had been 'red hot' with carriers wanting to negotiate extensions and added that the shipping lines were 'reluctant' to off-hire ships that had performed efficiently and economically, even if there was a lull in demand.
And with a typical operating expense of $7,000 per day for a panamax, healthy returns on investment are being achieved once again by owners in the sector.
Fears that an influx of newbuild ultra-large tonnage upsetting the charter market have so far proved unfounded as global cargo demand growth is currently at six per cent and shipping lines are commencing new services or enhancing their existing offerings.
The only containership sector suffering declines in the past month is in the 7,500 to 11,000-TEU range, with fixture rates dropping slightly on account of weak demand. This is a consequence of carriers cascading their smaller ships to other trades when they are displaced by the arrival of new mega ships.
Meanwhile, Alphaliner's idle fleet survey, at May 28, records the number of containerships in hot or cold lay-up at a new low of 85 units for 205,829 TEU, representing just 0.9 per cent of the total global cellular fleet.
According to Alphaliner, there is only one idle 4,000-5,299 TEU 'classic' panamax vessel at the moment compared with 100 at the end of 2016.
Since then charter rates have risen dramatically from a low of US$4,000 per day to $14,000, with owners now in a position to dictate their own terms for positioning costs and extension options, reports London's Loadstar.
According to one broker source he had a carrier prepared to offer up to $16,000 a day for a six-month charter.
Large-scale scrapping and an almost empty orderbook for smaller vessels have combined to shift the supply/demand balance in favour of shipowners.
The broker said his phone had been 'red hot' with carriers wanting to negotiate extensions and added that the shipping lines were 'reluctant' to off-hire ships that had performed efficiently and economically, even if there was a lull in demand.
And with a typical operating expense of $7,000 per day for a panamax, healthy returns on investment are being achieved once again by owners in the sector.
Fears that an influx of newbuild ultra-large tonnage upsetting the charter market have so far proved unfounded as global cargo demand growth is currently at six per cent and shipping lines are commencing new services or enhancing their existing offerings.
The only containership sector suffering declines in the past month is in the 7,500 to 11,000-TEU range, with fixture rates dropping slightly on account of weak demand. This is a consequence of carriers cascading their smaller ships to other trades when they are displaced by the arrival of new mega ships.
Meanwhile, Alphaliner's idle fleet survey, at May 28, records the number of containerships in hot or cold lay-up at a new low of 85 units for 205,829 TEU, representing just 0.9 per cent of the total global cellular fleet.