Classic panamax boxships tipped to appreciate in price by 50% this year

Classic 10-year-old panamax boxships have been picked by online pricing vehicle VesselsValue to appreciate the most in price in the coming 12 months.

In a release today, VesselsValue’s senior analyst Court Smith predicted 2009-built, 4,250 teu boxship prices could appreciate by as much as 50% in the next 12 months. This particular segment saw massive scrapping two to three years ago and has since seen very minimal ordering.

Even though recycling activity has slowed, the global container market balance has tightened in 2018, Smith noted. Furthermore, declining speed has been an important factor this year and slower speeds are expected to be the new normal, the VesselsValue analyst suggested.

Smith also picked out 15-year-old 35,000 cu m LPG carriers as a decent investment for 2019, predicting this ship type could appreciate by as much as 47% through to Q1 next year, citing higher LPG imports to Europe and a strong Indian market.

“Overall, the outlook for shipping asset prices remains bright, but several areas are more attractive than others,” the VesselsValue release concluded.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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