Price levels for older tonnage are likely to jump in the coming months ahead of an expected important regulation change from Beijing. Numerous brokers tell Splash that new rules, likely to come in by July, will see China limit ship imports whereby the current 18-year-old maximum rule will be reduced to just 15 years in age.
The impending new rule has already seen ships built around the turn of the century leap in price as Chinese owners rush to bag elderly vessels ahead of the ban.
One veteran post-panamax bulker sold at an astonishing high price last week as Chinese buyers battled for suitable tonnage. K Line’s 88,300 dwt Corona Frontier (built 2000) attracted 15 bidders and in the end fetched $13.6m. Online pricing portal VesselsValue sets the market value of this ship at just $8.16m.
After July, brokers anticipate prices for 17- and 18-year old tonnage will drop drastically while ships in the 14 to 15 year bracket are expected to see a notable appreciation.