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Weekly Broker: Bulk volatility is back

The secondhand dry bulk S&P market has seen a plethora of deals completed in the past week with interest across all size segments, reflecting owners’ confidence in the outlook of the market.

“It took some time for shipowners to assimilate the possibility that we are heading towards better days – and nobody can blame them for being sceptical – but the increase on second hand transactions is the most obvious vote of confidence,” commented Timos Papadimitriou, an S&P broker at Intermodal.

A new bullish report from Breakwave Advisors adds credence to the rally in bulker purchases of late.

The dry bulk market is about to surprise a lot of people in 2021

“The dry bulk market is about to surprise a lot of people in 2021, something that is not priced in the futures and is not in the mind of most investors,” Breakwave Advisors suggested, adding, “A lethargic decade for the industry is behind us, where fleet growth was consistently exceeding the ever-reduced demand growth. But such a dynamic is about to change, and despite pundits’ calls for a slow dying industry, we expect the next few years to be characterized by heightened volatility and strong risk-adjusted returns for dry bulk shipping.”

According to Banchero Costa’s latest weekly report, about 10 capesizes, 10 panamaxes/ supras, and six handies have changed hands. Chinese and Greeks top buying interest.

Mutiple shipbroking houses reported the sale of the 2010-built 170,000 dwt capesize bulekr Cape Providence. The South Korean-built vessel was sold by Turkish owner Active Shipping & Management in an auction to Greek owner Interunity for a price of $18.1m.

Banchero Costa, Allied Shipbroking and Lorentzen & Stemoco all reported that Libya’s state run GNMTC sold the 2011-built 169,000 dwt capesize bulker Jabal Nafusa to Greek owner Minerva. The vessel fetched a price of $15.5m.

More than eight shipbroking houses reported that Singapore’s Grace Ocean Investment sold its 2014-built 37,000 dwt handy bulker Furness Portland. The vessel has been acquired by Greek owner Gerassimos Kavadas-led Silo Management for $13.4m.

The secondhand tanker S&P market saw a moderate sales volume compared with the dry bulker sales.

Both Allied Shipbroking and Intermodal reported that Indonesian tanker operator BULL has taken over four 14,800 dwt sister product tankers built in 2006 and 2007 from Maersk Tankers. The Bro Distributor, Bro Designer, Bro Deliverer and Bro Developer were sold to BULL for an undisclosed price in a cash and shares deal.

Allied Shipbroking, Intermodal and Lorentzen & Stemoco all listed the sale of the 2017-built VLCC Hudson. US owner TRF Ship Management sold the vessel to Greek owner Delta Tankers for $71.5m.

Allied Shipbroking, Intermodal and Lorentzen & Stemoco also identified the buyer of the 2008-built 26,000 dwt handy tanker Chemroute Sun as UK’s Tufton Oceanic. Japanese owner Shintoku Kaiun sold the vessel for a price of $15.5m.

The containership sale and purchase market kept its good momentum for yet another week.

Intermodal and Allied Shipbroking and Clarksons all reported that Greek owner Costamare sold its 2000-built 4,800 teu panamax containership Halifax Express and the 2,646 teu Botany Bay.

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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