⊗

Ice-class tankers led the way this month with stunning prices paid for any available tonnage, regardless of age. Thenamaris’s 2007-built aframax reportedly conjured a magical $47m out of the hat. In a comparable deal to show how much the price has gone up for ice-class tonnage, in late November Thenamaris sold another ship with an ice 1C notation. The two-year older, 115,000 dwt went for $11m less than the Seamagic. There are plenty making hay in this cold climate “It was not so long ago, prior to current geopolitical events, that many often viewed ice class as a fuel thirsty hindrance, but while the daylight may be short in the Baltic there are plenty making hay in this cold climate. However, ice class remains a strictly second-hand preserve, not least for the delivery windows misaligned to capitalise on what may prove a short-term phenomenon and for the fact that many ice class buyers are broadly unknown entities without the stature or experience in ordering,” brokers Gibson noted. VLCCs have also been in vogue this month. The 2008-built went for $54.5m, while the three years older found new owners for $52.5m. As is common between Christmas and Chinese New Year, dry bulk S&P has been muted. Nevertheless, there seems to be a fair amount of optimism with the much talked about reopening of China and low orderbook, suggesting values should increase. The sales board was dominated this month by Pacific Basin's purchase of six Japanese ultramaxes. “This aggressive acquisition certainly underlines their faith in the market and their view on asset values today. With over 50% of the ultramax fleet now being between 6-10 years old and general scarcity of Japanese built tonnage, resulting in values remaining relatively static this would appear to be a shrewd move on their part,” Gibson suggested. After inviting offers last week, the 99,000 dwt, 2006-built has now been sold to Indonesian buyers for $15.5m, achieving a premium compared to a conventional panamax bulker given the larger deadweight. Finally, turning to the container market, secondhand prices fell off a cliff this month. After a very muted second half of 2022 in terms of sales, the opening days of 2023 have registered some severe drops in prices for the previously buoyant sector. Brokers Southport Atlantic note the sale of the 2007-built, 2,553 teu as a good illustration of the fall in values. The ship, just sold to Chinese interests, managed to obtain $13.7m, a sister ship, , going for as much as $46.5m 12 months prior. Similarly, the sector’s most aggressive buyer in recent years, Mediterranean Shipping Co (MSC), has just picked up a comparative bargain, paying $9.75m for the 21-year-old, 2,478 teu . A sister ship went for $23m 12 months ago. “The candidate list continues to grow and pricing is under pressure. It will be interesting to note where new benchmarks land in the coming weeks,” Braemar noted. Boxship S&P volumes fell back last year from the record seen in 2021 with Clarksons Research tallying 0.6m teu sold in 2022 down from 1.6m teu. Secondhand prices fell notably in the second half as dropping markets and increased investor uncertainty took their toll with Clarksons’ secondhand boxship index falling 46% across the year. “S&P price prospects are unlikely to improve anytime soon, due to the looming overcapacity triggered by the monumental orderbook,” a recent report from Alphaliner noted, suggesting today’s market could hold “interesting opportunities” for buyers that have so far been excluded from the market due to the prohibitive cost of tonnage.

Ice is nice

Ice-class tankers have been the toast of the S&P markets this month

⊗

To continue reading, please login below or subscribe here.

Read Next

Owners advised to cash in

Measuring shipping hubs

April 2024 Review

The on/off risk premium for tankers

Curse of the dry cargo optimist

Owners advised to cash in

Measuring shipping hubs

April 2024 Review

The on/off risk premium for tankers

Curse of the dry cargo optimist

Maritime CEO Forum Singapore

Maritime CEO Forum Monaco

Advertising

Press Releases

Splash

Splash Extra

Splash Special Reports