Weekly Broker: First week of August consigns summer lull theory to history

The first week of August has proven once and for all that the old adage of the summer slowdown can now be laid to rest. Granted the dry bulk chartering activity cooled, but on the S&P scene deals were concluded in astonishing volumes.

London’s Alibra Shipping noted that 95% of all dry bulk sales concluded this week have been in the supramax and panamax sectors.

“As before and despite the softer performance, sentiment remains positive overall with owners already looking at the last quarter of the year and beyond August and any additional discounts that will logically keep taking place in the following traditionally quieter days,” Greek brokers Intermodal said in its latest report.

“On the dry bulk side, a fair volume of transactions came to light for yet another week, underlying once again the improved sentiment and healthy buying appetite being noted right now. At this point, we see the supramax and panamax size segments being the main drivers in the SnP market. Notwithstanding this, given that we are currently witnessing a downward correction in the freight market and we are in the midst of the summer period, we can anticipate things to likely quiet down considerably over the next couple of weeks,” Allied Shipbroking said.

Allied Shipbroking and Intermodal both reported German owner Thomas Schulte’s en bloc sale of 2010-built, 79,700 dwt kamsarmax bulk carriers Diana Schulte and Dora Schulte. The two Chinese-built vessels were sold to Chinese buyers for a price of $11.5m each with time charter deals attached.

Multiple shipbroking houses including Allied Shipbroking, Intermodal, Banchero Costa and Lorentzen & Stemoco all reported a deal that Isle of Man owner Lenur Group sold two of its supramax bulkers, the 2009-built 55,500 dwt Peterborough and the 2010-built 55,600 dwt Sheffield. The two Hyundai Vinashin-built vessels were sold to Greek interests for $21m in total.

Several shipbroking houses reported that Japanese owner Hinode Kaiun sold its 2012-built, 58,600 dwt supramax bulker Hinode Maru to Greek buyers, while Intermodal identified the buyer as Stamatis Molaris-controlled Alma Maritime. The vessel fetched a price of $16.2m.

Intermodal, Lorentzen & Stemoco and Advanced Shipping & Trading all listed a deal in which Greek owner Eurobulk acquired the 2005 Japanese-built, 82,000 dwt kamsarmax Yasa Neslihan from Turkish owner Yasa Shipping for a price of $11.5m.

The tanker S&P sales have been dominated by the VLCCs this past week amid the positive sentiment in the chartering market. Alibra also noted it had been another solid week for concluded MR sales.

“It’s been close to a perfect storm in the VLCC market in the week gone by, with very strong demand in all areas, falling bunker prices and looming typhoons in the Far East…. Although activity is expected to slow down going into next week, we see little downside risk short term. Whether this is the start of the long anticipated paradigm shift remains to be seen, but for now owners are making the most of daily earnings not seen for a long time,” Fearnleys said in its latest weekly report.

Intermodal identified Swiss oil trader Vitol as the buyer of the 2002-built, 305,000 dwt VLCC Nave Electron. The South Korean-built vessel is believed to have been sold by Navios Maritime to Elandra Tankers, a joint venture between Vitol and Standard Chartered Bank, for $27m. The shipbroking house also reported that UAE-based owner Royal Express Ship Management bought the 2001-built VLCC Victory 1 from Greek owner NGM Energy. The vessel, which has been renamed Dante, is believed to have gone for $26.5m.

Lorentzen & Stemoco and Advanced Shipping & Trading both reported an en bloc VLCC sale. US investment firm Varde Partners sold its 2003-built VLCCs, Power D and Energy R, to undisclosed buyers for $28.5m each.

The containership S&P market has been relatively quiet this past week with little sales reported.

Allied Shipbroking listed a deal in which UAE-based Global Feeder Shipping acquired the 1997-built, 1,122 teu Setubafrom compatriot owner Arka Global Marine Services for an undisclosed price.