⊗

Containers For this edition of Analyst Abstract we look at the fading of erstwhile workhorses of the industry, whether it be the humble panamax, the coated suezmax or in box shipping’s case, its increasingly hollow middle. Container shipping’s orderbook-to-fleet ratio, which was in single percentage figures as recently as six months ago, has surpassed 15% this month as shipping lines pile on the tonnage, but no one is showing any interest in renewing mid-sized tonnage. Orders over the past six months have been predominantly for 12,000 teu, 15,000 teu and 24,000 teu class ships with no interest for mid-sized tonnage. Excluding some 18 orders for ships for the intra-China trade, the current orderbook in the 4,000 to 10,000 teu range stands at a mere three vessels, according to Alphaliner. Container shipping’s bifurcation between large ships and feeders is becoming increasingly clear. According to Clarksons, there are currently zero ships on order in the 6,000 to 7,999 teu range and just 18 on the 8,000 to 11,999 teu bracket. Explaining this decision to ditch mid-sized tonnage, CTI Consultancy pointed out that 4,000 to 8,000 teu ships are no longer competitive on longer trades, with the exception of the transatlantic and specifically ships serving Montreal. “We see Latin America, Africa and Oceania increasingly having calls of ships with 8,000+ teu of capacity. For smaller tradelanes, the 8,000 to 15,000 teu range is probably going to become stock,” CTI stated. Dry Bulk The kamsarmax fleet hit the 100m dwt milestone this month, according to new data from Braemar ACM, with a strong start to the year in terms of newbuild deliveries. A total of 16 kamsarmaxes have been delivered so far this year, adding 1.3% in terms of dwt capacity to this dry bulk segment. Kamsarmaxes – essentially oversize panamaxes – first hit the waters in 2005. The first of this now popular ship type was built by Japan’s Tsuneishi Shipbuilding. The 80,000 dwt prototype was called a kamsarmax, being the largest size vessel that could then enter Port Kamsar, a bauxite export zone in Guinea. Since the first ship delivered, kamsarmaxes have become increasingly popular – made more so when the Panama Canal expanded its locks five years ago. In the last couple of years, the number of kamsarmaxes has actually surpassed their panamax forebears. Standard panamaxes have seen a decline in fleet size so far this year, with six vessels removed and only one delivery in the opening weeks of 2021, resulting in a fall in carrying capacity of nearly 1%. Braemar ACM expects another 66 kamsarmaxes to be delivered in 2021, representing 5% of the current fleet. Meanwhile, only six panamaxes are scheduled for delivery over the remainder of 2021 further widening the gap between these two dry bulk segments. Aware of this change in the dry bulk fleet, the Baltic Exchange announced this month that panamax FFA trading would transition from the old 74,000 dwt index to the 82,500 dwt index on April 5. Tankers LR3s – or coated suezmaxes – are nearing extinction. According to Alphatanker, there are currently just 26 afloat and no ships of this type on order. Moreover, only 12 of the existing units are currently trading clean with the rest trading as suezmaxes in the dirty tanker pool. Alphatanker cited three main reasons for the decline of LR3s in its most recent monthly report. Most important is the lack of a backhaul cargo for an LR3 to carry from west to east. Secondly, existing LR3s do not generally have a large number of separate tanks compared with modern clean petroleum product carriers. Finally, LR3s have been hit hard by the increasing use of newbuild suezmaxes and VLCCs on their maiden voyage to transport clean products from East of Suez refiners to the Atlantic Basin. Since January 2020, 33 of these vessels have loaded in amongst others, India, China, Singapore, South Korea and Saudi Arabia taking the place of a potential 39 LR3 fixtures. An LR3 costs $4m more to construct than a standard suezmax built in South Korea, according to Alphatanker, who warned LR3s are set to become a scarcer and scarcer sight on the ocean.

Analyst Abstract

⊗

To continue reading, please login below or subscribe here.

Read Next

Costs for armed guards onboard rocket

Reining in black swans

March 2024 Review

March’s tanker rollercoaster

A sense of euphoria sweeps through dry bulk

Costs for armed guards onboard rocket

Reining in black swans

March 2024 Review

March’s tanker rollercoaster

A sense of euphoria sweeps through dry bulk

Maritime CEO Forum Singapore

Maritime CEO Forum Monaco

Advertising

Press Releases

Splash

Splash Extra

Splash Special Reports