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Weekly Broker: Busy days running up to Chinese holidays

It has been a busy time for secondhand purchases ahead of China taking the next few days off for its annual Golden Week holidays. Dry bulk has led the way in line with freight rates firming up in the sector.

“The capesize sector underwent a firm week all-in-all as increases were recorded among all fronts; this was topped off by the impressive average capesize earnings rally in the second half of week 39. The panamax sector exhibited a relatively positive performance with small but steady gains being the talk of the town across the board. A similar atmosphere was exhibited in the supramax and handysize markets; the later enjoyed a year-to-date record high in average time charter earnings,” Intermodal said in its latest report.

Allied Shipbroking, Lorentzen & Stemoco and Anchor Shipbroking all reported that Greek owner Samos Steamship sold its 2004-built 229,000 dwt capesize bulker Vathy. The Japanese-built vessel is believed to have been sold to Chinese buyers for a price of around $14m.

Lorentzen & Stemoco reported an en bloc deal in which Greek owner Soloi sold two 57,000 dwt supramax bulkers – 2011-built Ellioe and 2012-built Dimi – to compatriot buyers for 8.5m each.

Multiple shipbroking houses reported the sale of the 2005-built 55,800 dwt supramax bulker Santorini Queen. Chinese owner Dalian Hongfeng International sold the Japanese-built vessel to Vietnamese buyers for $7.8m.

Things were more sluggish in the tanker S&P market as the declining chartering market has curbed the buyer’s interests.

According to Intermodal, “The wet trade continues to have a rather uninspiring outlook with optimism being very limited. The VLCC sector experienced a dampened w-o-w activity while activity remained overall steady in the suezmax front with rates hovering at low levels. Aframax activity was at and disheartening; despite marginal increases in overall aframax earnings, the sector remains subdued.”

New analysis out today from Alphatanker suggests that tanker markets are now caught in a persistent downturn lasting for at least the next 12 months.

“We believe that this downturn will sow the seeds for a sustained rally in hire rates post-2022. This will be achieved as scrapping is set to surge next year driven by persistently low returns and the requirement for owners to equip their older tonnage with costly BWTS. Meanwhile, the orderbook v existing fleet ratio currently stands at a 31-year low,” Alphatanker stated.

Intermodal reported that Japanese owner NYK sold its 2011-built 305,500 dwt VLCC Tokitsu Maru to Qatari owner Aswan Shipping & Trading. The Japanese-built vessel fetched a price of $45m.

Allied Shipbroking, Intermodal, Lorentzen & Stemoco and Seasure Shipbroking all reported that Vietnamese tanker operator Aulac JSC sold its 2003-built 10,000 dwt product tanker Aulac Dragon. The Chinese-built vessel was sold to UAE-based Glory International for $2m and renamed Global Angel.

Seasure Shipbroking, Allied Shipbroking and Anchor Shipbroking all listed the sale of the 2008-built, 7,550 dwt small clean tanker Mo Satu. The Chinese-built vessel was sold by Malaysian owner Millennium Satu to compatriot buyer Straits Inter Logistics for $4.5m.

In the secondhand containership S&P market, according to Braemar ACM Shipbroking, activity remained respectable in the run up to the holidays in China.

Braemar reported that Japanese owner Nissen Kaiun sold two 2008-built 1,708 teu ships Sinar Sangir and Sinar Subang to Chinese buyers at a price of $6.5m each after their previous sale failed earlier this year in the wake of Covid-19.

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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