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Freight Markets’ Lacklustre Performance Hurting Ships’ Sales

The less than optimum freight market conditions have started to hurt sentiment in the S&P market, not to mention the newbuilding market. In its latest weekly report, shipbroker Allied Shipbroking said that “the subdued activity resumed in the dry bulk market for another week, reflecting the increasing concerns regarding the recent freight market correction and the overall volatility being seen in the year so far. This past week we witnessed a limited number of second-hand units changing hands, with potential buyers taking a step back, awaiting to see if any clear bullish direction can take shape at this point. However, even if earnings start to rebound, it is unlikely that interest will resume in a snap fashion. In contrast, we continue to see a considerable number of transactions taking place in the tanker market, with a dozen units reported as “sold” this past week. Once again focus was given to the products segment, with the positive outlook and the much-improved freight rates being the leading factors here. In the case that the freight market continues to improve, we expect to see a further escalation of deals to take shape over the following weeks”.

In a separate report, shipbroker Banchero Costa added that it was “a rather quiet week for secondhand drybulk sales. Golden Union was reported as the buyer of ‘Ocean Sapphire’ (92k/12 blt Dalian) and ‘Ocean Garnet’ (92k/10 blt Dalian) for $28.4mln. The Supramax ‘Lord’ (52k/04 blt Tsuneishi Cebu) was sold via auction to Chinese interests for $5.32mln. In the Handysize sector the ‘Aargau’ (32k/10 blt Universe SB) was reported sold for $6.2mln, a value in line with the sale of the one-year younger sister, which was previously sold for $6.7M. Another Handy, the ‘Atalanta’ (32k/01 blt Saiki) was reported sold for $5.2mln. In the tanker sector another VLCC was sold, the ‘Sea Latitude’ (309k/01 blt Hyundai) was reported to Turkish buyers for $26.2mln. Two Aframax both built Sasebo, are rumoured to have changed owners; the ‘Virgo Sun’ (115k/07 blt Sasebo) was reported sold to Performance Shipping for $26mln and the one-year younger ‘Berica’ (115k/08 blt Sasebo) apparently went to to Greek buyers for $28.7mln. Another, older, Aframax, the ‘Seaways Portland’ (109k/02 blt Hyundai) was reported sold to Indian buyers for $12.85mln. Buana Listya Tama is reported as the buyer of the two sisters ‘FSL Perth’ and ‘FSL Piraeus’ (109k/06 blt Dalian), for a price around $19.85mln”, the shipbroker said.

Meanwhile, in the newbuilding segment, Allied Shipbroking noted that “newbuilding activity was limited this past week, with interest from buyers starting to slow down now and looking poised to remain sluggish up until the end of the year. In the dry bulk market, we witnessed a couple of new contracts being reported last week, both from the same owner. The lack of interest seems to have come as a result of the recent downward spiral being seen in the freight market and the overall volatility that has been noted this year so far. These bearish factors have led most to be a bit more conservative in their decisions with regards to new orders. The total orderbook right now stands at 801 units, approximately 150 vessels less than the beginning of the year (15.7% YTD fall), compared to a 13.5% decline at the same time frame last year. On the tankers’ side, interest for new ordering has also declined. However, this does not mean that we did not see any new orders, as 4 VLCCs and 2 Suezmaxes were added to the global orderbook. The positive market outlook and the better state of orderbook compared to previous years leaves space for further activity to take shape over the following weeks”, Allied noted.

Banchero Costa added that “in the drybulk segment there were only two fresh orders. Atlantic Bulk Carriers placed an order at Hundai Vinashin for 2 x 61,000 dwt Supramax vessels, the deliveries are set for March and July 2021. An undisclosed buyer ordered a 37,000 dwt at Shimanami Shipyard. More activity in the tanker sector. China Merchants Energy Shipping ordered 4 x 300,000 dwt VLCC from Dalian Shipbuilding Industry. The deliveries are set for December 2021, April 2022, August 2022 and December 2022. Metrostar ordered 2 x 158,000 dwt at New Times Shipyard; the deliveries are set for December 2021 for both ships and the reported price is $56.5m each. Rosneft placed 2 x 114,000 dwt at Zvezda Shipyard for delivery September 2021”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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