Dry Bulk Ordering Activity Rides Wave of Optimism
The optimism surrounding the prospects of the dry bulk market in the long-term was enough to trigger additional newbuilding orders over the course of the past week. In its latest weekly report, Allied Shipbroking said that “it is true that newbuilding market has not yet impressed with the overall activity reported, while it has been subject to hefty periodical ups and downs. Uncertainty and curbed investment appetite are the main characteristics in new order placing for the time being. Notwithstanding this, this past week we witnessed a considerable jump in activity in the dry bulk sector, a sector that in this year has as of yet rather underperformed compared to what we witnessed in the latest part of the previous year.
This enhanced fresh interest though, came rather attuned with the considerable improvement in the freight market these past couple of weeks, after a long period of downward pressure that was being felt. On the other hand, the rest of the major shipping sectors were eerily quiet this past week, confirming once more the unpredictable nature of the newbuilding market, which seems unable at this point to sustain a stable flow in terms of volume”.
Meanwhile, in the S&P market were rather active as well. Allied noted that “on the dry bulk side, we witnessed once again a fair bit of activity surfacing, though a large number of the units changing hands were part of the large enbloc deal secured by Star Bulk. The expectation now is for things to continue firming and there is an anticipation for a gearing up in interest to emerge for the larger Capes, given the recent jump noted in the freight market. Overall, appetite amongst buyers seems to be re-emerging in high numbers and this could well help push for another round of price hikes in the near term. On the tanker side, the slow trickle of deals coming through continues for yet another week, with the turmoil being noted both in the freight market and global crude oil markets still overshadowing the second hand market with a deep sense of investment uncertainty. The few buyers around seem to still hold appetite only for bargain deals of which a very select few emerge”.
In a separate note this week, VesselsValue said that in tankers there was very slight softening across the sector, most notably in LR1 Tonnage. “Aframax Zirku (105,800 DWT, Jun 2003, Hyundai Heavy Ind) sold to Shanghai Zhenhua Shipping for USD 10.0 mil, VV value USD 10.37 mil. Sold for conversion. Aframax BM Breeze (105,400 DWT, Jun 2008, Sumitomo) sold to PETROVIETNAM for USD 18.0 mil, VV value USD 19.44 mil. SS due. MR1 Chem/ Product tanker Rosita (38,100 DWT, Oct 2004, STX Offshore) sold to Matrix Energy for USD 10.0 mil, VV value USD 9.96 million” said VV.
In the dry bulk market, VV said that there was very slight softening in Capesize and Panamax tonnage and slight firming in modern Supramax and Handy tonnage. “Capesize Vogerunner (176,800 DWT, Dec 2008, Namura) sold to Korea Line Corp for USD 24.0 mil, VV value USD 24.71 mil. Bank driven sale. Panamax Orange Truth (83,100 DWT, May 2006, Tadotsu Tsuneishi) sold to Pavimar SA for USD 13.8 mil, VV value USD 14.29 mil. An en bloc deal of four Supramax vessels for USD 47.0 mil, VV value USD 47.77 mil included; E Transporter/Trader/Traveller/Tracer (57,000 DWT, Jun/Sep 2010/ Jan/May 2011, Yangzhou Guoyu Shipbuilding). DD due.
Supramax Luminous Halo (56,000 DWT, Mar 2006, Mitsui Tamano) sold to Nomikos AM for USD 12.5 mil, VV value USD 12.21 mil. An en bloc deal of two Supramax vessels for USD 19.6 mil, VV value USD 22.34 mil included; Blue/White Diamond (53,500 DWT, Jan/Jul 2008, Ha Long). SS due. Star Bulk have acquired, in an all shares deal; 5 Newcastlemaxes / Capesize vessels, 2 Mini Capesize vessels, 8 Post Panamax/Kamsarmax vessels and 1 Ultramax vessel of 4.5 years of average age, built mainly in Japan and Korea”, the ships valuations expert concluded.