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Weekly Broker: Aframax prices leap

The secondhand tanker sale and purchase market continued to see plenty of activity and interest this past week as buyers remain inspired by the recent rally in freight rates. Meanwhile, business bounced back in the dry bulk sale and purchase sector despite rates showing a gradual downward correction all week long. 
Allied Shipbroking’s indicative values show that average prices for secondhand bulkers stayed flat for all age and size groups in the past month except for older tonnage in the handysize segment where average prices for 10-year-old 32,000 dwt and 15-year-old 28,000 dwt bulkers increased by 2.6% and 4.2% respectively since end of September.
During the same period, average prices for secondhand tankers in all age and size groups increased to different extents. Most notably, the average price for 15-year-old and 10-year-old 105,000 dwt aframax tankers surged by 16% and 12.2% respectively.
“After a week’s pause, activity in the dry bulk market returned in force. Interest was divided this past week between panamaxes and supramaxes, two size segments that have been hurt by the recent downward pressure witnessed in the freight market. However, several buyers seem to still hold confidence over the future prospects of these segments. Given the continued slide in the freight market, it becomes more likely that we will see ever softer buying interest emerge, a fact that may push for a drop in prices as well over the  following weeks,” Allied Shipbroking said.
Seasure Shipbroking, Advanced Shipping & Trading, Banchero Costa and Anchor Shipbroking all reported the sale of the 2007-built 76,000 dwt panamax bulker Genco Raptor. The Jiangnan-built vessel has been sold to Greek buyers for a price of $10.2m.
More than five shipbroking houses listed a deal in which Phoenix Bulk Carriers sold its 2001-built 52,500 dwt supramax bulker Bulk Juliana to Chinese interests. The Kanasashi-built vessel has fetched a price of $6.5m.
Allied Shipbroking, Seasure Shipbroking and Banchero Costa all reported that Greek owner Atlantic Bulk Carriers sold its 2006 Chinese-built 53,000dwt supramax bulker Desert Melody. The vessel has been sold to compatriot Greek buyers for a price of $7.65m.
Several shipbroking houses reported the sale of the 1995-built 47,600 dwt handymax Meghna Princess. Singapore’s Pacific World Shipping sold the Oshima-built vessel to Chinese interests for a price of $3.5m.
“On the tankers side, buyers’ interest remained intense for another week. Once again, most of the units that changed hands were product tankers, reflecting the positive sentiment still prevailing there. However, several crude units were also reported sold this past week. Given the still positive earnings being noted in the freight market, the anticipation right now is for buying interest hold firm,” Allied Shipbroking said.
Allied Shipbroking and Seasure Shipbroking reported a deal in which US investment firm Hartree Partners has sold one of its four VLCC newbuildings at DSME. The 300,000 dwt crude carrier Ghillie has been sold to Hahn & Co controlled H Line for a price of $103m. The deal also includes a five year charter to Hyundai Oilbank at $45,000 per day.
Multiple shipbroking houses reported the en bloc sale of two 2005-built 159,000 dwt suezmax tankers, Cape Bari and Cape Bastia, by German owner German owner Koenig Cie while Allied Shipbroking identified the buyer as Indian owner Great Eastern Shipping, which acquired the two Hyundai Heavy-built vessels for a price of $23m each.
More than six shipbroking houses reported that Team Tankers International sold two 2004-built MR2 tankers Team Toccata and Team Tosca. The two Brodotrogir-built vessels are believed to be sold to Ukrainian buyers for $12.85m each.
There has been no secondhand containership sale and purchase deals to report this week.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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