Vast Majority of Bulkers Sold Aren’t Capesizes
Ships’ valuations expert VesselsValue recently published its half year report on the S&P market.
A total of 204 bulkers have been sold since the beginning of 2019, interestingly however only 6 of these have been Capesize bulkers.
During a period of 4 months from December – April, no Capesize sales were concluded. This break of 106 days had never been seen in the market before. The lack of activity can be attributed to a lull in buying confidence brought on by poor spot rates and the collapse of the Vale owned Brumadinho dam in Brazil and its consequent effect on cargo supply. The record came to an end when well-known owner Fred Cheng sold 2 x 2002 blt units the Shinyo Challenger and Shinyo Endeavour in quick succession both to Chinese interests.
Tankers by contrast have had a quieter 2019 with only 141 sold since the beginning of the year. The lacklustre activity has been in part due to poor market sentiment and earnings but also from changing global regulations and an increase in sanctioning activity coming from the US. Modern assets have performed the best with resale prices for VLCC in particular reaching a recent 5 year peak at usd 98 mill. This is partly due to rising newbuilding costs but also a function of owners looking to reposition themselves with modern high spec assets in time for IMO 2020. Recent VLCC time charter fixtures suggest that charterers are currently willing to offer premiums for scrubber fitted vessels. A prime example of this being a 2018 scrubber fitted VLCC The Maria P Lemos being fixed to Mercuria for 3 years at usd 43,000 per day, a rate that has not been seen in over 4 years
The offshore market has experienced a healthy level of sale and purchase activity with a number of supply and construction boat sales being concluded as a result of the 2018’s well publicised Toisa bankruptcy. Outside of this we have also seen improving fundamentals especially in the North Sea and as a result further modern / resale assets being concluded albeit still at historically low figures. PSV’s have proven the most popular choice with 33 vessels sold since the beginning of 2019.