Container Values And Earnings Fall To The Lowest Levels Since Early 2021

Fixture of 17 year old Xiamen to ONE at 18,000 USD/Day is approx 2,000 USD/Day below the yearly average for classic Panamax assets.

Container Values have fallen across all sub sectors and age categories based on weakened market sentiment which has had an impact on recent benchmark sales. Values for 20YO Post Panamax vessels of 7,000 TEU are down by 18.51 % from USD 29.28 mil to USD 23.86 mil and compared to the same time last year where this vessel type was valued at USD 74.36 mil, a fall of c.67.9% year on year.

Although values still remain above average, there is still potential for values to fall further, particularly given the historically high levels of newbuildings set to enter the market over the next few years. Fixed Age values for this sector have dropped to levels not seen since February 2021.

Slowing demand due to recessionary fears and higher consumer prices combined with a multitude of newly built vessels entering the market has caused earnings to plummet. TC rates have fallen and are currently at the lowest levels since January 2021 and one year time charter rates for Post Panamax vessels are currently at 38,950 USD/Day, down by c. 12% month on month. Also, the fixture of 17 year old Xiamen (4,253 TEU, Jun 2006, Dalian Shipbuilding Industry Corp.) to ONE at 18,000 USD/Day for one year, approximately 2,000 USD/Day below the yearly average for classic Panamax assets, signaling further softening in charter rates and values should be expected.

Reported sales include the 23 year old Panamax Oakland (4,890 TEU, Oct 2000, Hyundai Heavy Ind) by Costamare to Chinese interests just below USD 12 mil, VV value USD 11.2 mil.

Also the Northern Magnitude (6,732 TEU, Dec 2003, Daewoo) sold to MSC for USD 17.5 mil, VV value USD 22.82 mil and the Joseph Schulte (9,403 TEU, Nov 2013, Jiangnan Shanghai Changxing HI) also sold to MSC for USD 55 mil, VV value 60.13 mil.

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