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Weekly Broker: April on target to be quietest month in more than a decade

The secondhand sale and purchase market in general has gone even quieter this past week as the spread of coronavirus continues to restrict ship deliveries globally.

“On the dry bulk side, things continue to remain at an overwhelming quiet state this week, with activity continuing to remain at a minimum, firmly establishing in an emphatic way the disruptions and the lack of buying appetite that is present in the second hand market right now. The COVID-19 pandemic is looking to likely to continue to leave the market at a very subdued state, while at the same time the expectation amongst buyers grows ever more towards the possibility that there will be a sharp flow of bargain hunting opportunities in the near-term, a fact that leaves many to refrain from acting now,” Allied Shipbroking said in its latest weekly report.

Multiple shipbroking houses reported that Japanese owner Nagashiki Kisen sold the 2009-built 55,400 dwt supramax bulker African Kingfisher while Intermodal and Allied Shipbroking identified the buyer as Indonesian owner Tanto Intim Line. The Japanese-built vessel has fetched a price of $9.7m.

Banchero Costa and Intermodal reported that Nagashiki Kisen has sold another vessel – the 2009-built 32,200 dwt handy bulker Clipper Kamoshio. The Japanese-built vessel was snapped up by Greek owner Newport for $7m.

“On the tankers side, activity has also held at relatively subdued levels, though given the better performance that was seen in the tanker freight markets, and especially in the freight markets for crude oil tankers, it seems as though things have been kept slightly more lively here. Market disruptions have been evident here as well, while the slight scale back in freight rates has also influenced buying appetite,” Allied Shipbroking said.

Intermodal and Lorentzen & Stemoco both reported an en bloc deal in which China Merchants-controlled China VLCC sold three VLCCs – 2010-built New Coral, 2009-built New Creation and New Talisman to undisclosed buyers. The vessels were sold for $43m each.

Lorentzen & Stemoco, Intermodal and Allied Shipbroking all listed the sale of the 2001-built MR 45,000 dwt MR tanker Noble Spirit. Japanese owner MOL sold the Japanese-built vessel to Chinese interests for $6.75m.

In the containership sale and purchase market, according to Braemar ACM Shipbroking, enquiries remain muted but not silent, while the issue of delivery is still the biggest hurdle in any secondhand transation.

At this rate, April could be the quietest month for S&P deals in more than a decade. Brokers will have more family time at home.

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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