THE last non-operating owned panamax containership that was sitting idle for 38 months has left its berth in Brunei Bay, Malaysia after securing time charter employment in Hong Kong. This ship is the 2010-built 5,100-TEU Cornelia 1.
The opening of the expanded Panama Canal in 2016 that enabled vessels up to 12,000 TEU to pass through this vital waterway for world trade had prompted shipping lines to off-hire panamax ships in droves, replacing them with more cost-efficient, larger vessels that could transit the canal.
Amid a void of new charter opportunities and heavy over-capacity, hire rates and asset values dived, hitting panamax shipowners hard, reported London's Loadstar.
Some shipowners, such as Rickmers Maritime Trust that had focused their portfolios on a panamax fleet, went bankrupt and at the height of the sector's demise in February 2017 when 100 panamax containerships were idled in hot or cold lay-up.
Even if brokers were able to secure brief employment for the spot ships, daily hire rates were below operating costs, reaching a rock bottom US$4,000.
However, panamax ships have been the industry's top performers this year due to a virtually empty orderbook and continuing robust demand, particularly on secondary trades.
Daily hire rates for the newest, fuel-efficient panamax vessels have surged to up to $15,000, with charterers asking for extension options and footing the bill for positioning. Subsequently, the value of the ships has jumped to match their potential earning power.
According to vesselsvalue.com, the Cornelia 1 is now valued at $14.6 million, up from $7.6 million in February last year.
The opening of the expanded Panama Canal in 2016 that enabled vessels up to 12,000 TEU to pass through this vital waterway for world trade had prompted shipping lines to off-hire panamax ships in droves, replacing them with more cost-efficient, larger vessels that could transit the canal.
Amid a void of new charter opportunities and heavy over-capacity, hire rates and asset values dived, hitting panamax shipowners hard, reported London's Loadstar.
Some shipowners, such as Rickmers Maritime Trust that had focused their portfolios on a panamax fleet, went bankrupt and at the height of the sector's demise in February 2017 when 100 panamax containerships were idled in hot or cold lay-up.
Even if brokers were able to secure brief employment for the spot ships, daily hire rates were below operating costs, reaching a rock bottom US$4,000.
However, panamax ships have been the industry's top performers this year due to a virtually empty orderbook and continuing robust demand, particularly on secondary trades.
Daily hire rates for the newest, fuel-efficient panamax vessels have surged to up to $15,000, with charterers asking for extension options and footing the bill for positioning. Subsequently, the value of the ships has jumped to match their potential earning power.
According to vesselsvalue.com, the Cornelia 1 is now valued at $14.6 million, up from $7.6 million in February last year.