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Supramax values continue to fall

Bulkers have seen a fall in values across the board this year, but the smaller sizes have seen the most dramatic decrease in asset prices. Values for five year old Supramaxes have fallen by c. 12% from USD 30.3 mil in January to USD 26.74 mil today. So far this year, 198 sales took place, a decrease of c.17% from the same period last year.

Notable sales include the Bulk Carina (57,800 DWT, Dec 2016, Tsuneishi Cebu) that sold to Greek buyers for USD 22 mil, VV value USD 23.36 mil. The Worldera 6 (52,300. December 2005, Tsuneishi Cebu) was sold to Chinese buyers for USD 12.5 mil, VV value USD 12.78 mil.

Figure 1: Values for five year old Supramaxes in USD mil.

Supramax values have come under pressure following the drop in freight rates. The 58-TCA assessment from the Baltic Exchange currently stands at 12,800 USD/ Day, down c.48% year on year, despite the welcome news of an extension in Ukraine grain exports. Uncertainty around China’s economy and global economic fears continued to weigh heavily on commodity demand.

Crude Tanker sales with undisclosed buyers

Sales of Crude Tankers with undisclosed buyers have increased by 157%, with 49 sales reported so far this year. This increase is a result of growing speculation that the Tanker market will split into two sectors, ahead of the sanctions and price cap mechanism on Russian oil coming into force at the beginning of December. A growing number of vessels potentially intend on trading within the ‘dark fleet’ and might seek to capitalise on the premiums resulting from Russian trades.

The majority of these sales have been in the Suezmax sector, accounting for c.41% of transactions to undisclosed buyers this year, followed by VLCCs that make up c.30% of sales. Aframax sales ranked third, accounting for 29%.

Figure 2: Crude Tanker sales to undisclosed buyers by subtype since 2019.

In November to date, there have been 9 sales reported, comprising of six Suezmax Tankers, and three Aframax transactions. The average age of the Tankers sold is 13 years. Although values for Tankers have increased across all categories, older vessels have seen the most impressive gains, with values for 20 year old Aframaxes having increased by c.94% since January from USD 11.4 mil to USD 22.95 mil.

Recent sales include the Maria Grace (160,000 DWT, March 2002, Samsung) which sold for USD 22.5 mil, VV value USD 21.76 mil.
Source: VesselsValue

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