The SSE has noted repeatedly that "box liners continue to control capacity" in which they seek to establish above 90 slot utilization rates for major routes.
As employment opportunities dried up, owners faced the music and began sending younger and younger Panamax vessels to the scrapyard, some as young as seven years old.
It is not the first year spot rates in December are higher than yearly medians: In 2016, spot rates for shipping to the East Coast also failed to drop significantly.So why do I think the crowding out effect here will be less than we saw during 2016 and early 2017?The shipping cycle appears to be following a similar trend.Some of the container ship companies traded in the.S.The Panama Canal expansion accommodates vessels up to approximately 14k TEU, which are termed Post-Panamax or New-Panamax.Panamax: 3,000 - 5,999 teu with beams less than 33m.(nasdaq: dcix Global Ship Lease, Inc.New-Panamax: 10,300 - 13,399 teu with beams less than 49m.So what's behind this change in sentiment and why only certain classes?Panamax And Smaller The Panamax class was put through the ringer over the past couple of years.Currently, there are only nine vessels on order bringing the orderbook for this class to a paltry.2 in terms of vessel numbers and just.0 in terms of capacity.(nyse: cmre Diana Containerships, Inc.The figures respectively represent.9 and.9 drop from the average rates in November, but.5 and.4 rise on a year-over-year basis.Now, the market appears tight for several smaller classes and given the very thin orderbook it could grow even tighter which would propel rates higher.A few times recently carriers have introduced tonnage which outpaced demand creating sub 85 slot utilization rates which caused carriers to cut rates for bigger market shares.The challenge here is for ship planners to phase them into their trade loops without causing a big spike in capacity and a negative impact on freight rates.
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Let's remember that the recent wave of containership growth was fueled almost entirely from the top.

The problem was too many orders were placed which was the main cause behind the current downturn.Freightos and, new York Shipping Exchange are making it easier than ever to book space on container ships by putting the process online.Feedermax: 500 - 1,249 teu.In response, companies like Maersk and Hapag-Lloyd are moving to online"s and rate distribution with the help of firms such.It will take some time to work through the massive amount of contracted newbuilds set to hit the water.I am not receiving compensation for it (other than from Seeking Alpha).Mega-Boxships My résultats kéno de midi concerns regarding the mega-boxship orderbook still remain.Post-Panamax: 3,000 - 10,299 teu with beams greater than 33m.Youll also join a community of investors committed to helping keep one another informed about the best opportunities and news impacting the markets.Holding back these mega-boxships should minimize a cascade of smaller though still fairly large ships into secondary trades, and so on and so forth.The reason why the Panamax has gained more recently as opposed to the Feedermax comes from Panamax values dropping off a cliff relative to other classes during the height of the market crisis.Container lines themselves recognize that the process of booking container space can be at times quite painful.One Hamburg broker told The Loadstar this week that he had cargo on his books prepared to pay up to 20,000 a day for a young 4,000 teu ship.Therefore, if this trend is maintained it looks as though the high levels of out, or whatever you want to call it are behind.Disclosure: I am/we are long NMM.
Toft said that although there was an agreed delivery schedule, "if we find that fundamentals are different then we will surely take up dialogue with the yard." Some companies have already made that call.