Ship builders see cancellations of post Panamax vessels.

Another reason given for the justification of the canal expansion project has been the need to handle larger ships being built that can't pass through the existing canal. Due to the economic conditions ship builders are seeing a large number of cancellations of these large bulk carriers. Obviously the shipping companies don't see things turning around any time soon as these huge vessels take years to construct.

Excerpt from Forbes: DryShips also nixed its planned $1.17 billion purchase of nine new Capesize vessels, pointing to the steep drop in charter rates and ship values in recent months. The global credit crisis pushed down values of ships dramatically, because letters of credit - which are required in a majority of shipping deals - were increasingly hard to secure. Drybulk shipping rates had also been hurt by slowing global demand and slipping commodity costs.
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