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Dry Bulkers in High Demand Amid Market Rally

Ship owners are stockpiling dry bulk carriers, after the latest rally in the freight rate market. In its latest weekly report, shipbroker Banchero Costa said that “despite the summer season activity picked up in the dry bulk sector following the trend of charter rates. In the Capesize segment MSXT Vivienne abt 175k blt 2004 SWS was done at $12.5 mln, while Cape Maria abt 170k blt 2005 Hyundai Samho was sold at $14 Mln. to greek buyers, two weeks ago Lowlands Phoenix abt 177k blt 2004 Namura was done at $13,2 Mln. After 3 parties inspected the vessel it seems Sunny Smile abt 95k blt 2013Imabari is sold at $21.5 Mln. After failing on subs, it was revealed three Korean controlled kamsarmaxes FH Ri Zhao, Zhen Bang abt 79k blt 2015 Jinhai and Fh Fang Cheng abt 81k blt 2015 Jinhai are now sold at $45 Mln en bloc to c. of CDBL”.

Banchero Costa added that “in the supramax segment, Navios sold two Iwagi-53 (Navios Primavera blt 2007 and Navios Arc blt 2003) at $9.8 and 7.2 respectively. Furthermore, Star Gamma abt 53k blt 2002 Oshima was reported sold at $7 Mln. In the handy segment, after two offers were received on Sagittarius Ocean abt 37k blt 2014 Onomichi (ss/dd due August 2019) it seems vessel is now sold at $15,3 Mln. Furthermore Crane Island abt 32k blt 2009 was sold at $8,8 Mln. two weeks ago Louise and Emma Bulker at 31k blt 2010 Hakodate weresold at $9.7 Mln. each. In the tanker market it was reported c. of Ridgebury Tankers to be behind the acquisition of the four suezmax (Cape Bari, Cape Bonny, Cape Brindisi and Cape Bastia abt 159k blt 2005 HHI) controlled by Konig & Cie Gmbh at $82 Mln. en bloc. Furthermore two resale LR2 at Daehan Shipyard were sold en bloc at $50 Mln each to Monaco based client with delivery during 2020”.

In a separate note, Allied Shipbroking said that “strong SnP interest continued on the dry bulk sector for another week, with increasing freight rates and improving market sentiment triggering several owners to search for additions to their fleets. Interest was spread last week across the whole spectrum of sizes in this sector. With the bullish movement of earnings in mind, activity is expected to hold firm for the time being while there seems to be strong indications now being felt of an upsurge in asset prices. On the tanker side, a fair number of transactions were reported once again, with the oil product segment being at the center of attention. With forecasts showing demand for oil product units soaring in the final quarter of the year, it is of little surprise the increased appetite being noted. Interestingly enough, buying focus was not limited to modern units last week, depicting the much-improved confidence and optimism for strong near term earnings”.

By constrast, in the newbuilding market, Allied Shipbroking said that it was “a very quiet week, with limited number of new deals being reported during the past few days. Despite the improving market sentiment in the dry bulk sector and the rising earnings, there continued to be a lack of buying interest for the moment. However, this is not expected to be the new norm, as several orders were seen during the weeks prior, giving rise to the anticipation of a swell in activity to be seen during the final quarter of the year. Meanwhile, newbuilding activity on the tanker side also remained subdued last week, with only one interesting deal coming to light. This was the order of 2 Aframax units from Greek owners. It seems that buyers have shifted their focus over to the secondhand market during the past few weeks, but we may well see fresh new order action take shape down the line, given the positive demand projections still prevailing in this sector”, the shipbroker said.

In a similar note, Banchero Costa noted that “last it was reported that Japan Marine United will start to build 4 x Newcastlemax that will probably be purchased or chartered by a Japanese major. Kawasaki ordered for its own account three LPG carrier (abt 84,000 cu. m.) the delivery will take place between the second half of 2021 and the first half of 2022. In South Korea, it was registered that Sun Enterprises moved for 2 + 2 Aframaxes at Daehan Shipyard with delivery during the second half of 2021; price in excess of $50 mln for scrubbed vessels. There are rumours that the same shipyard received other orders for Suezmax and Aframax, but the details not emerged yet”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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