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Dry Bulkers Still in High Demand

Demand for dry bulk carriers remained high over the past week. Ship owners are eager for more tonnage, on the back of improving market fundamentals. In its latest weekly report, shipbroker Allied Shipbroking said that “on the dry bulk side, interest remained relatively robust this past week, with the positive sentiment noted as of late from the boosted freight market playing a key role. Almost all of the deals being reported this past week included Panamax and Supramax units, with the majority of them being considered as vintage. Given that second -hand prices have posted a slight drop recently, it is likely buyers’ appetite will continue to hold for a little while longer. On the tankers side, it was also an interesting week with a moderate number of transactions taking place. Interest here was focused on the oil products’ segments with four MRs and one small product/ chemical tanker being sold. The long-term positive outlook of the market and the slightly decreased prices has helped to counter the decrease in activity that was starting to take shape due to the recent softening noted in the freight market”.

Source: Allied Shipbrokers

In a separate note this week, shipbroker Banchero Costa added that “CAPE LEONIDAS 180,000 dwt built in 2010 at Daehan went to Greek buyers for low $18 mln. In the Panamax segment the LORETO 76,000 dwt built in 2004 at Sasebo (SS due in 2024 and BWTS fitted) was sold to Greek Buyers for a good price of $8 mln. The most of the activity was recorded in the Supramax segment with several sales and ships under negos still at time of writing. The OHBS design NIKKEI VERDE 52,000 dwt built in 2011 at Oshima was sold to Chinese buyers for $11.5 mln; the sister 2005 built Tess 52 design FLORINDA I and SABRINA I 52,000 dwt were rumoured sold to undisclosed for region $5.5 mln. Still under negotiation the MIMI SELMER 56,000 dwt built in 2005 at Mitsui (SS due in 2020) which saw levels region $7 mln, the BULK PARAISO 53,000 dwt built in 2007 at Iwagi (DD passed and BWTS fitted) which close to be committed in region high $7 to $8 mln and SUN LUCIA dolphin 57 design built in 2012 Tier II which got offers around $9 mln. In the Kamsarmak sector presently under negos the WISE YOUNG 82,000 dwt built in 2011 at Daewoo which received best offer at $13 mln: sellers targeting a level in the $14 mln. In the tanker segment the interesting sales were 2 x VLCC units sold: the HRA 320,000 dwt built in 2011 at DSME was sold to Eurotankers for $48 mln (understand the Sellers ordered the scrubber which though we not sure part of the deal and included in the price) and the Sea Coral 298,000 dwt built in 1996 at DSME went to Russians for $18 mln. In the product tanker segment, the EAGLE MELBOURNE 50,000 dwt built in 2011 at Onomichi was reported sold to undisclosed for region $15.5 mln”, Banchero Costa noted.

Meanwhile, in the newbuilding market, Allied added that “it was a quiet week for the newbuilding market, with potential buyers taking a step back after the rising momentum that was noted during the past couple of weeks. The fact that we witnessed an increased number of new orders in the dry bulk market as of late is likely to be curbed now, with many doubting as to the long term sustainability of the recent gains noted in the freight market. However, given the drop noted in the newbuilding prices, things might keep moving for a little while longer. This past week there were no new transaction being reported, while the total number of units ordered in the year so far has reached 61. As to the tanker sector, the downward momentum in freight earnings (despite last week gains) has definitely played a role in trimming interest, despite the fact there still seems to be much more optimism being held in this sector. Last week, we witnessed an interesting order for 3 shuttle tankers from Greek interests at an undisclosed price and another order of 4 VLCCs (still under negotiations). Meanwhile, 67 units have been added to the global orderbook in the year so far”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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