Splash Extra

Keen sellers find bargain hunters

It’s been a solid month for secondhand tonnage sales

Since the onset of the pandemic every month has seen reduced spending on secondhand tonnage to previous years. Not so October however. A mix of keen sellers and ever lower prices has coalesced to make for a very healthy volume of tonnage changing hands.

As well as the ongoing drip of Japanese bulker tonnage being put into the shop window, this month’s figures have been bolstered by Scorpio selling bulk carriers en masse to raise cash for its new wind project as well as the swift sale by judicial managers of the Ocean Tankers fleet in Singapore.

A total of 12 capesize/newcastlemax units were sold during October which accounted for over 55% of the total dwt transacted this month. The sales came despite rates for this segment seriously coming off the boil throughout the month.

The enforced sales of Ocean Tankers’ ships in the wake of the Hin Leong bankruptcy in Singapore propped up what would have otherwise been a weak month for tanker sales.

“Rates have had a prolonged period of low prices, this has consequently meant values across the tanker sector have fallen. Aframax values have suffered following a month of low rates, including spot rates briefly going negative for the first time since 2011,” comments a spokesperson from VesselsValue.

VLCC deals dominated the market this month, accounting for 13 of the 23 vessels sold. Notable deals included the Tai San, Tai Hung San, Pu Tuo San VLCCs sold to Maran Tankers in an en bloc deal for a bargain $110m.

Spending for container vessels in October was solid albeit at elevated prices. Earnings continued to firm to levels pre-Covid-19 particularly for the larger containerships.

“With the charter market still making gains it takes a particularly determined buyer to transact. Just as likely is a seller revising their ideas upward or withdrawing ships entirely,” Braemar ACM noted in a report this week.

Back to top button