Bulker prices are falling while tanker values are jumping. As the year closes are we closing in a moment where these two sectors cross in different directions? What is clear in week 47 of 2018 is that we have entered peak S&P with the volume of concluded deals surging.
According to Alibra’s latest chartering report, rates in almost all bulker segments remained under pressure in the past week, while the tanker period market for crude remained healthy and the products market is finally starting to show signs of promise.
Allied Shipbroking statistics show that the prices of five-year-old 180,000 dwt capesize bulkers have dropped by 1.4% in the past month, while prices for a 10-year-old 170,000 dwt capesize and a 15-year-old 74,000 dwt panamax have dropped 3.1% and 5% respectively.
For tankers, however, prices for secondhand VLCCs have been rising during the past month, most notably prices for 15-year-old 250,000 dwt VLCCs have increased by 8% while prices for 10-year-old 45,000 dwt MR tankers are up by 3.4% lending credence to the feeling the tanker sector has indeed bottomed out.
“On the dry bulk side, another week of fair volume of transactions took place in the SnP market, underlying the strong buying interest the market is currently enjoying. However, given the sharp correction from the side of earnings in the capesize segment mainly, a perplexed sentiment towards the market has already started to emerge. Given also the sensitivity of the SnP market to the overall future outlook, we have to wait and see how things will evolve over the upcoming weeks,” Allied Shipbroking said in its latest weekly report.
In the supramax segment, Lorentzen & Stemoco, Banchero Costa and Allied Shipbroking reported the sale of two 2010 Chinese-built 58,000 dwt bulkers, Walsall and Wigan. The two vessels are believed to be sold by Isle of Man owner Wigan Maritime to a joint venture between German owner Asiatic Lloyd and UK ship management and investment company Norse Management in a bank driven sale at a price of $11m for each vessel.
Multiple shipbroking houses all reported a transaction where Canadian owner Canfornav acquired two 2010 Chinese-built 29,000 dwt handysize bulkers – Mistral and Bora – from Armania Shipping for a price of $8.5m each.
Advanced Shipping & Trading, Lorentzen & Stemoco and Intermodal all reported Cosco Shipping’s en bloc sale of four capesize bulk carriers to Singapore’s Berge Bulk. The four vessels include one 2011-built 180,000 dwt vessel New Shanghai and three 2010-built 175,000 dwt vessels New Huzhou, New Quzhou and New Taizhou. New Shanghai has fetched a price of $27.5m while the other three have been sold for a price of $23.5m each.
Banchero Costa, Lorentzen & Stemoco and Optima all reported the resale deal of a newbuild kamsarmax bulker at Tsuneishi Zhoushan. BW Dry Cargo is said to have taken over the 81,000 dwt vessel Hull SS-200 from the original owner China Minsheng Shipping for a price of $30m. The delivery of the vessel is scheduled in 2019.
Several shipbroking houses reported that Greek owner Kairis Brothers has sold its 2012-built 81,000 dwt kamsarmax bulker Tenten for $18m. Seasure Shipbroking and Lorentzen & Stemoco have identified Greek owner W Marine as the buyer of the vessel.
“On the tanker side, a considerable boost in transactions has been noted over the past couple of days, possibly as a mere reflection of the better freight market climate seen as of late. The highlight of the week of course was the massive en bloc deal for 13 small modern aged tankers which went for a total of around $350m. Moreover, with the overall sector still being in a recovery mode, we can expect many interesting deals taking shape in the short run,” Allied Shipbroking said.
Allied Shipbroking reported a large en bloc deal in which Dutch owner Ace Tankers, a Dutch outfit connected to Idan Ofer, has acquired a total of 13 chemical tankers from BW. The vessels BW Stream, BW Orinoco, BW Argon, BW Cobalt, BW Boron, BW Lithium, BW Silicon, BW Radon, BW Rhine, BW Lena, BW Neon, BW Mercury, BW Mia, all around 19,900 dwt, are sold for an en bloc price of $350m.
Advanced Shipping & Trading and Lorentzen & Stemoco both listed the sale of the 2007-built 116,000 dwt aframax tanker Yasa Golden Horn. Vietnamese owner Petrovietnam Transportation (PV Trans) has snapped up the vessel for a price of $20m.
Advanced Shipping & Trading and Lorentzen & Stemoco reported the sale of the 2003-built MR tanker Narodny Bridge. Indian owner Seven Islands is said to have purchased the vessel from Russian owner Sovcomflot for a price of $8.75m.
Seasure Shipbroking, Intermodal and Advanced Shipping & Trading all listed the en bloc sale of two 2009 South Korean-built 50,000 dwt MR tankers called Alpine Minute and Alpine Mystery. The vessels were sold by Diamond S Shipping to Danish owner Norden for a price of $16.9m each.
Several shipbroking houses reported that Singapore’s GC Tankers, part of China’s HNA Group, has sold two VLCCs, the 2014-built GC Fuzhou and the 2015-built Tianjin to Greek interests. Banchero Costa, Intermodal and Allied Shipbroking have identified the buyer as Greek owner Delta Tankers. The two vessels have fetched an en bloc price of $114m.
Despite the surging volume in both bulker and tanker sale and purchase market, activities in the secondhand containership market remain limited.
“S&P activity remains subdued but a number of discussions continue and we expect to be in a position to report further sales in the coming weeks. Though it is all too easy on the buyers part to adopt a wait and see approach,” Braemar ACM Shipbroking said in its weekly report.
According to Braemar, the most notable activity reported was the sale of the 2016 South Korean-built bangkokmax Heung-A Laem Chabang at $20m to Japanese owner Kotoko Kaiun, who are now seeking charter employment.
Additionally, Lorentzen & Stemoco and Advanced Shipping & Trading identified Dutch owner Spaansen as the buyer of the 2003-built 750 teu feedermax Gerd. The price for the deal was not disclosed.