Rates for larger boxships have risen to $30,000 per day.
A resurgent market for neo-panamax and traditional panamax containerships has culminated in the strongest fixtures this year.
The 8,643-teu Seamax Bridgeport (built 2003) has reportedly been taken for a year by Mediterranean Shipping Co at $30,000 per day.
This is $10,000 per day more than the Swiss liner operator paid to fix the 8,189-teu Seamax Greenwich (built 2004) and 8,059-teu Seamax New Haven (built 2005) for similar periods earlier this year.
Summer boost
Normally, the charter market drops in July and August, but this year is proving the exception.
A shortage of larger ships is benefiting the maxi-panamax sector, where Peter Dohle Schiffahrts has fixed the 5,294-teu Balbina (built 2010) at a new benchmark rate.
The vessel has been hired by Orient Overseas Container Line for seven to nine months at $14,250 per day in what one broker describes as “an incredible turnaround for a segment much maligned over the years”.
Baby-panamaxes are also fixing for increasing rates, with Technomar chartering the 4,250-teu Constantinos P (built 2011) to Israeli operator Zim for 11 to 13 months at $13,400 per day.
Earlier this year, the vessel could have achieved no more than $8,000 per day.
But traditional panamax rates are up by $4,000 in the past month, or about 25%, according to the New ConTex index.
Since 2013, rates for containerships have dropped in July and August.
Retrofits have the effect of boosting the charter market for neo-panamax ships down to traditional panamax as liner companies utilise the charter market for temporary replacement tonnage
Braemar ACM
Unique circumstances
However, the unique circumstances of the shipping market this year has led many to bet on a firm market for the coming months.
In this month's quarterly report, Braemar ACM highlighted the increase in larger containerships entering yards to have exhaust gas cleaning systems installed.
“Retrofits have the effect of boosting the charter market for neo-panamax ships down to traditional panamax as liner companies utilise the charter market for temporary replacement tonnage,” the broker said.
“The longevity of the charter boost from scrubber retrofits should play out in 2020 also.”
Scrubbers boost
The bigger ships are more likely to have additional or extended dry-docking for scrubber fitting, resulting in a tighter supply of bigger tonnage for charter.
There are currently no spot ships in the segment greater than 7,500 teu.
Additionally, extended dry-docking for scrubber installation should also keep the supply-and-demand curve in favour of tonnage providers in the short term, Braemar added.
“We are likely to see forward fixing and extending well in advance, as carriers ensure they have charter coverage in this sector,” Braemar said.
The firm added that demand for larger containerships has been further boosted by liner companies actively organising and planning their alliance commitments and their East-West service programmes.
