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Second Hand Acquisitions Still the Main Market Mover

Ship owners are still more active in the S&P market, rather than the newbuilding one, with delays and cost increases acting a deterrents. In its latest weekly report, shipbroker Allied Shipbroking said that “activity of the newbuilding market is still subdued, being seemingly still influenced by the shipbuilding delays and disruptions in operations in China. This week’s orderbook additions are in no way reminiscent of the number of new orders we were witnessing a while ago, when the Shanghai lockdowns hadn’t yet been placed. However, the significant rise in the freight market for both the dry bulk and the tanker sectors seem to have awaken interest amongst potential buyers who despite the existing difficulties show a fair amount of optimism as to the potential such an investment could have. Moreover, what was surprising is that despite the continuous good performance of the containership market, this week showed no relevant new orders coming to light. On the pricing front, we have started to see further price hikes at play from shipbuilders over the past month or so, certainly being driven by the limited availability of early slots and the fair increases noted in steel plate prices”.

Source: Allied Shipbroking

In a separate note, Banchero Costa added that “increasing prices, the ongoing war in Ukraine and a revised world economic outlook are the limiting factors affecting contracting activity. Globus Maritime placed 1 firm order to Nihon Shipyards for Ultramax Bulker 64,000 dwt (fuel efficient) for delivery 1st half 2024 at $37.5 mln. 4 Handysize ordered last week, size 40,000 dwt both orders placed in Japan: Meadway ordered 2 x 40,000 dwt Log Fitted (Tier III) at Namura for delivery 3rd Quarder 2024 at $32 mln per unit, while Taiwan Navigation went to Hakodate for their 2 x 40,000 dwt (Tier III) for delivery 9-12/2024 at $32.3 mln each unit”.

Meanwhile, in the S&P market, things are rather different. Allied said that “on the dry bulk side, it would seem that overall activity moved on a mediocre orbit as of the past week, given the relatively fewer number of transactions coming to light. On the other hand, we are slowly seeing a more fervent Capesize market, that comes relatively attuned with the recent trend being noted from the side of earnings.

Source: banchero costa &c s.p.a

All-in-all, given the general bullish sentiment, coupled with the firm buying appetite in the whole dry bulk sector, we may well expect the SnP market to still hold a fair bit of bullish momentum for the near term, something that will likely also be reflected on the pricing front. On the tanker side, activity levels managed to hold their ground for yet another week, with a fair number of units changing hands. It is true that this came in line with the general stronger buying appetite (and asset price levels) we have been noticing during the past few months or so. However, earnings still hold as a bearish factor in respect to sustainability of SnP market’s momentum”.

Source: banchero costa &c s.p.a

Banchero Costa added that “in the dry market, two JP Morgan controlled kamsarmaxes BTG Kailash and BTG Olympos abt 82k blt 2015 JMU (SS due 2025 BWTS fitted ME engine) have been committed en bloc at $71 mln to Greek buyer. Amoy Dream 57K July 2010 Xiamen (SS / DD due 2025/2023 BWTS fitted) sold $17.5 mln basis end May/early June delivery. Few weeks back Eratios abt 55k blt 2011 Zhejiang was reported at $17.6 mln. In the handy segment, B-Delta design Erisksay abt 39k blt 2015 Chengxi (SS due 2025 DD due 2023 log fitted) was sold at $24.5 mln to European buyer, few weeks back Dolcevita abt 39k blt 2015 Chengxi was reported at $25 mln. Furthermore, Irongate abt 28k blt 2015 Imabari (SS due 2025 BWTS and log fitted) was done at $18.5 mln basis delivery September. In the tanker market, a Greek controlled VLCC New Spirit abt 298k blt 2005 Universal (SS Due 2025 BWTS fitted) was reported at $33.85 mln, few weeks back Tokio abt 305k blt 2005 Mitsubishi was done at $31 mln. Turkish interests were reported to be behind purchase of LR2 Almi Star abt 115k blt 2005 Daewoo (SS due 2025 BWTS fitted DPP trader) at $18.25 mln. Last week, aframax Sophie Schulte atbt 115k blt 2005 Sanoyas was reported at $17 mln. A modern MR2 St Pauli abt 50 k dwt blt 2017 Hyundai has been privately committed for $33.3 mln”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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