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Product Tankers In Demand

Demand in the S&P market was mainly focused around product tankers over the past week. In its latest weekly report, shipbroker Banchero Costa noted that it was “a fairly active week with a clear focus on the product tanker segment. As usual we start from bulkers and the Real Happiness 76,000 dwt, built 2005 by Imabari which was sold in a private deal by Japanese owners to Castor Maritime for $10.2mln. The Dolphin57 Suprastar built 2011 by Qingshan is reported sold to Chinese buyers for a price of $10.4mln, in line with other similar ships of this range and vintage. An older Japanese built Supramax controlled by Navios the Navios Hios, 55,000 dwt built 2003 by Sanoyas is reported sold to Greek buyers around $7.65/7.8mln. A modern Chinese built Handysize, the Thurgau, 32,000 dwt built 2011 is sold for a soft price around mid/high $6mln including TC till February 2020 at $8,600/d to Greek buyers. In the tanker sector a 320,000 dwt built 2003 by Hyundai Samho was sold to clients of NGM for $32.5/33mln. As said the activity was focussed on product tankers with 12 units changing hands. In a bank sale a fleet of 4 MRs was sold to Greeks (tbc) for a price of $30mln. Another interesting sale, still to be confirmed is for 2 x 49,000 dwt built 2011 by Onomichi for a price around $21.5mln each, the units are fitted with deepwell pumps, a rare case for Japanese built tonnage”, the shipbroker said.

In a separate note, Allied said that “we seem to have hit a pause in the market from a fairly active year so far. The fair corrections that have taken place in the freight market lately seem to have curbed buying interest for the time being, something that is likely to continue over the following weeks. Focus was given these past few days on the Panamax and Supramax sizes, as these sectors look to be less volatile while at the same time their current earnings are still at satisfactory levels. On the tanker side, the current freight market correction seems to have not been enough to trim investors’ appetite for oil product tonnage, with more than 10 MR units changing hands during this past week. The positive outlook for the last quarter of the year and for 2020 have expanded interest from several owners that would like to further invest in this market. We expect activity for oil product units to remain on this upward trend over the coming weeks”, the shipbroker noted.

Meanwhiile, in the newbuilding market, Allied Shipbroking said that it was “another week with sluggish newbuilding activity in the dry bulk sector, as overall buying interest remains low. The volatility noted in earnings during the year so far has diminished confidence, a fact that makes it hard right now to justify the extra cost against the second hand market levels. Having said all that, this past week we noticed one new order, placed from Singaporean owners for three Post Panamax vessels. There is no sign that things will change in this sector anytime soon, given the prevailing freight market conditions. The same limited activity was seen last week for tankers as well. Only one new order came to light and this was for 4 MR units from Singapore owners. Despite the recent boom in freight rates, We haven’t seen any spectacular rush for new orders in the crude oil tanker space, affect that further bolsters the idea that most in the market hold the view that the current market fundamentals can’t hold these bullish freight levels for very long”.

Banchero Costa added that “in the container market, Ocean Network Express (ONE) is reported to be under negotiation for 10 (6 + 4 options) 23,000 teu carriers. Hyundai Mipo received a firm order for 2 + 2 MRs (around 50,000 dwt) from Eastern Pacific. The vessels will be dual fuel, expected dely late 2021. The same owners are rumoured to be signing a LOI with the yard for a 7,500 cbm bunkering tanker. In the dry market, Pacsari, part of the Indofood group, moved for 3 x 87,000 dwt Post-Panamax at Mitsui with delivery end 2020-early 2021. The vessels will be Tier III, wide beam and shallow draft. In China, Fukujin Kisen added a second Ultramax (around 61,000 dwt) at Dalian COSCO KHI for delivery towards end 2020. Vessel will adopt standard Kawasaki design. Same yard received an order for one Kamsarmax from Nagashiki Kisen, delivery is fixed for December 2020”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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