Splash Extra

Japanese owners ready fleet clear-outs

The second half of the year ought to see more ships transacted

July has seen increased volume of tonnage coming out of Japan, which brokers anticipate will continue. The companies who earmarked ships to be sold in 2020 were quiet in the first six months of the year, so brokers hope to see a year’s worth of ships coming for sale in the latter half of the year.

Keishin Kaiun, Meiji Shipping, Doun Kisen, Nissen Kaiun, all have sold or have tonnage on the market and seem to be realistic sellers.

With Hong Kong and Singapore cutting crew change again, taking over ships with new crews is proving very difficult

There is a decent balance of buyers to absorb the vessels coming, leading brokers to suggest there is unlikely to be any significant jump or fall in pricing.

Sellers increasingly accept that they need to appoint a trustworthy independent surveyor company (Idwal and Aalmar are doing well from this) and then give or sell the report to prospective buyers as it is difficult getting inspectors around the world.

Moreover, with Hong Kong and Singapore cutting crew change again, taking over ships with new crews is proving very difficult.

July has seen 40 bulkers sold, down significantly from the record high of 71 in 2019. Supramaxes were the most transacted bulker type with 13 sold. Supramax earnings continued their climb from mid-April lows, starting July at $7,268 per day and finishing at $9,963 per day.

Notable bulker transactions this month included the 15-year-old 203,200 dwt Cape Rosa, sold to Berge Bulk for $13.6m while BW Dry Cargo sold 10-year-old kamsarmax pair BW Barley and BW Einkorn to Centrofin for $28.5m en bloc.

Tanker S&P remains slow, with only 13 confirmed deals so far this month. Values have softened across most of the tanker types, with older VLCCs, aframaxes and LRs having lost 3-5% of their value since the beginning of the month, according to data from VesselsValue. MRs are the only sector to show any improvement in values this month.

Notable sales this month include the nine-year-old VLCC Hra, which Eurotankers bagged for a bargain $46m. The low price was due to the fact the ship had previously traded with Venezuela.

Finally, in the containership S&P scene sales were muted. The trend of the month was German owners offloading 2006/07 built feedermaxes.

Notable transactions this month included the sale of the 15-year-old 6,350 teu MOL Paradise to Costamare for $10.5m, while German owner MarConsult Schiffahrt sold two 2007-built 1,043 teu feeder boxships, Marcarrier and Marcloud, to Chinese buyers for $5.2m each.

Back to top button