Dry Bulk Carriers Still In Demand Despite Recent Market Downside

Ship owners are still rather active in the S&P market for dry bulk carriers. In its latest weekly report, shipbroker Allied Shipbroking said that “on the dry bulk side, interest was once again vivid, despite the corrections noted in the freight earnings. Sentiment is robust and current rates are still considered as a positive aspect. Deals were noted across the whole spectrum of size classes this past week, albeit focus was given to handysizes. The current earnings to asset value ratio seem to be more attractive in the smaller units, with upside potential though being lower. We expect activity to remain strong in the segment with more business likely to emerge by the end of the year. On the tanker side, it was also an active week, despite the poor demand and supply fundamentals dominating the market.

Sentiment has started to improve in the segment, in line with the interest for crude oil (and petroleum products) shipments and thus more keen buyers have started to be emerge in the market. Product tankers were once again at the center of activity, albeit several deals were reported in the crude oil space as well”.

In a separate note, Banchero Costa added that “despite the recent slowdown in the rates which seems over though, the Buyers have been quite active and we have registered a plethora of sales in every size. Kamsarmax “SM Aurora” 82,000 dwt 2012 Jiangsu, China has achieved rgn $21.75 mln. Ultramax “Nord Colorado” 60,000 dwt 2018 Oshima has obtained $31 mln circa from Greek buyers. Strong price (rgn $19.5 mln) was also achieved by the handy bulker “Royal Justice” 37,000 dwt 2012 Saiki, BWTS fitted. In the wet, a rare case of modern aframax sale occured with “Antonis” abt 113,000 dwt 2017 Daehan having now found buyers at $45 mln. Price apparently higher if compared to a 5 yrs old aframax average price of $40.4 mln. However “Antonis” is coated, has BWTS fitted, and 1 year “younger” (more on a paper since she will turn 5 years old in 40 days)”.

Meanwhile, in the newbuilding market, Allied said that “interest for newbuilding projects was once again moderate in the dry bulk segment, even if it lost some steam as of late, hurt by the recent correction that has taken place in the freight market. OVerall sentiment is still relatively robust and as long as second-hand asset prices continue on a rising path, expectations are for more businesses to take place in the near term. During this past week, a contract for 4 Kamsramaxes and 6 small bulkers were reported, all from Chinese interests.

On the tankers’ side of things, there were no new deals taking place for yet another week. Given the persisting poor demand profile in the market and the still relatively “high” newbuilding prices, it is of little surprise that we have not seen any sharp renewal in interest from the side of buyers. This is not expected to change significantly in the near future. Finally, declined activity was seen in the container and gas sectors are well this past week, although this may well be just a temporary pause in the overall frenzy that has been noted of late”.

Banchero Costa added that “in the dry bulk market, Yangzi-Mitsui received an order from Yangzijiang Shipping Pte, Singapore for 4x kamsarmax bc (abt 82k). Vessels to be delivered during end 2022 and beginning of 2023. German owners have agreed with Japanese yard to build 2 large Handysize bc (abt 40k) basis delivery during 2023. In the tanker market Capital Maritime & Trading placed an order for six eco MR2 (abt 50k dwt) at Hyundai Vinashin to be delivered during end 2022-end 2023. Price to be around $38 mln”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide