Secondhand boxship prices plunge - Splash247 - Splash 247
Secondhand boxship prices plunge - Splash247
Secondhand boxship prices plunge
Secondhand boxship prices have dropped between 50% and 75% compared to a year ago, with Alphaliner predicting values could diminish further in the coming months.
As of the start of this month, there have been signs that secondhand prices have been stabilising, but with what Alphaliner described in its latest weekly report as “disappointing” cargo volumes, “depressed” cargo rates on many routes, “huge pressure” from the avalanche of newbuilding deliveries, and a “weakening” charter market, further declines are expected in the coming months.
“Not surprisingly the sale and purchase market is evolving in line with the charter market,” Alphaliner noted, describing prospects for the sale and purchase market as “far from exciting”.
Echoing the dropping boxship values sentiment, brokers Braemar wrote in a recent report: “Growing economic uncertainty and a quickly softening charter market is beginning to weigh on values. Feeder vessels have been the immediate losers but as the charter periods on tonnage in and around panamax sizebands shorten, the values will likewise start to correct.”
Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.