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Attention Turns to Second Hand Bulkers

Ship owners were mostly active in the S&P market for dry bulk carriers over the course of the past week. In its latest weekly report, shipbroker Allied Shipbroking said that “on the dry bulk side, it was another week with a considerable amount of transactions taking place across the whole size spectrum. However, the most vivid interest was seen once again on smaller units, with Supramax and Handysize being the key drive this past week. The healthy demand – supply profile of the market and the rising momentum on the freight earnings is expected to retain buyers’ appetite robust in the coming weeks. On the tankers side, it was an anaemic week, as very few deals were reported. The declining spiral that freight market has entered in the crude oil market has curbed any interest from potential buyers as of late. This trend is much less intense in the oil product segment, but activity was also lacklustre this past week. We expect the persisting poor performance of freight indices to increase keen sellers in the market, with buyers’ appetite remaining though questionable”.

 

Source: Allied Shipbroking

In a separate note, shipbroker Banchero Costa said that “a vintage Capesize ‘Alpha Century’ 170,000 dwt built in 2000 at Sasebo was sold to Greek buyers at $8.25 mln. Furthermore, in the Panamax segment 2 x Post Panamax ‘Tokiwa Maru’ 91,000 dwt built in 2003 at Imabari and ‘Corona Garland’ 88,000 dwt built in 2000 at Imabari were sold respectively at $6.9 mln and at $6.25 mln. After offers were invited last week, Kamsarmax ‘Precious Sky’ 82,000 dwt built in 2015 at Tsuneishi seems sold at $22.2 mln to Japanese buyers. The Supramax segment was the most active of the week: 2 x Japanese controlled units ‘Global Majesty’ 56,000 dwt built in 2012 at Oshima and ‘Sri Ganesh’ 56,000 dwt built in 2007 at Mitsui were sold at $11.8 mln and $7.6 mln respectively, furthermore ‘Santorini Queen’ 55,000 dwt built in 2005 at Kawasaki was purchased by Indonesian buyers at $7.9 mln. In the Handysize segment, after offers were invited by Sellers, Japanese owners disposed ‘Pacific Journey’ 38,000 dwt built in 2011 at Imabari at $10.5 mln. Some weeks ago ‘Angelic Zephyr’ 37,000 dwt built in 2014 at Kanda was reported at $14 mln. Finally ‘Ocean Harvest’ and’ Ocean Luck’ 32,000 dwt built in 2004 at Hakodate were done at $4.8 mln each basis delivery Far East. In the tanker segment an older VLCC ‘Pantariste’ 309,300 dwt built in 2002 at Samsung was sold at $26 mln to Middle Eastern interest, possibly Akron Trade and Transport, UAE. Suezmax ‘Bastia’ 159,100 dwt built in 2005 at Hyundai was sold to Seven Islands of India for $20.8 mln bases SS/DD promptly due (however price to include BWTS ready to be installed) whilst controlled Suezmax ‘Aldus’ 149,999 dwt built in 2003 at Universal was sold to Bacolitsas (Sea Pioneer) for $17.5 mln”.

Source: banchero costa &c s.p.a.

Meanwhile, Allied noted that it was a very quiet week in the newbuilding market, “with very limited activity being reported. Starting off with the dry bulk market, despite the positive demand-supply profile that has been shaped as of late, it seems that buyers have taken a step back for now. It is likely that they will wait now for further price drops to take shape before proceeding with any fresh interest. At the same time, the positive momentum in freight rates has been maintained, but we should wait and see if this increase in earnings could help push for a new series of newbuilding orders to take place during the final quarter of the year.

Meanwhile, things are much less positive in the tankers market, where we may have seen two new Suezmaxes being ordered this past week, but interest amongst buyers remains very limited. We do not expect to see any significant uptick in activity anytime soon, as fundamentals remain weak for the time being. Additionally, it seems that the current price levels being quoted are far from attractive in the eyes of most in the market and thus we anticipate interest for newbuilding projects to start increase only after any significant drop in prices takes shape or a considerable reshaping of demand and supply fundamentals helps boost market sentiment”, the shipbroker said.

Source: banchero costa &c s.p.a.

Banchero Costa added that “despite the tanker market was not supporting the newbuilding activity, 2 x Suezmax tanker units were ordered by NAT at Samsung for a price of $53.2 mln for delivery Q4 2022. Another Suezmax order was taken by Samsung, this time on account of Pantheon Tankers. In the product tanker segment HMD continued to fill up his orderbook with an addition of 2 more product tankers 50,000 dwt units for undisclosed counterpart. Limited activity in the dry segment as well: except few orders booked for builders’ account which will be options for resale going forward or trading in the builders’ shipping companies. Otherwise Santoku Senpaku ordered other KHI 61,000 dwt Ultramax at Dacks for delivery end 2021 and early 2022, no price disclosed. Whilst intra China business was done between Jiangsu New Yanzijiang who will built 2 x Kamsarmax units for Ocean Longevity for delivery end 2021: price reported around $26 mln which was in line with newbuilding quotes of major Chinese yards for Tier III Kamsarmax design”, the shipbroker concluded.

Source: banchero costa &c s.p.a.

Nikos Roussanoglou, Hellenic Shipping News Worldwide

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