Dry Cargo

Bulk carriers withdrawn from market on falling S&P prices

A large number of deals in dry cargo S&P are sealed with brokers filling up their dry bulk column, week after week, however, one feature is noticeable; there are few modern bulkers changing hands. Most ships sold are in their late teens, reducing buyers’ risk on capital employed. The market appears to have dropped some 10% in one month for modern tonnage, forcing JP Morgan to remove two ships from the market.

Brokers tell Splash that JP Morgan has decided to withdraw two 2015-built Japan Marine United-built kamsarmax bulk carriers, BTG Rainier and BTG Matterhorn, which invited offers last week. The duo saw a tremendous amount of attention. Splash understands that the two highest bids were lowballed at $64m to $65m en bloc, too low for the sellers. In comparison, in May the same age BTG Kailash and BTG Olympos fetched some $35.6m each.

The seller of the withdrawn bulkers, Bulk Trading Group (BTG), is a joint venture between Kristian Gerhard Jebsen Group and JP Morgan. BTG ordered a total of eight sister ships for about half the price between 2012 and 2013.

Hans Thaulow

Hans Henrik Thaulow is an Oslo-based journalist who has been covering the shipping industry for the last 15 years. As well as some work for the Informa Group, Hans was the China correspondent for TradeWinds. He also contributes to Maritime CEO magazine. Hans’ shipping background extends to working as a shipbroker trainee with Simpson, Spence & Young in Hong Kong.
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