Weekly Broker: Buying for a rebound

Weekly Broker: Buying for a rebound

The buying appetite in the bulker sale and purchase market shows no sign of abating with a raft of concluded deals to report. Buyers are more willing to take a chance with current competitive prices, grabbing tonnage in anticipation of a rebound in the market. It’s brave as uncertainties in the chartering market remain with capes struggling to get much more than $5,000 a day at present.

According to the latest Alibra weekly report, very little period activity has surfaced this week in the chartering market, the slight improvement in the BDI has yet to have much of an impact on capesize time charter rates, while the panamax charter market is also quiet as the capesize market continues to have a knock-on effect on the sector. It has been a positive week for the handymaxes and supramaxes however as period rates picked up and outperformed some of the larger vessels.

“The positive reversal in capesize earnings last week gave a significant boost to the BDI, while as rates for the big bulkers have been moving down again yesterday and today, uncertainty continues to describe market sentiment,” Intermodal said in its weekly report.

“A significant rise was noted in the dry bulk S&P activity this past week, as several new deals came to light. Buying interest continues to focus on the kamsarmax and panamax segments, with owners possibly anticipating that the earnings for these types of vessels will rebound soon, while quoted secondhand prices seem to be competitive right now. Activity was not limited to these sizes however, with a fair amount of tonnage changing hands in the smaller supramax and handysize segments as well,” Allied Shipbroking said in its latest report.

This week, Splash has already reported Scorpio Bulkers’ major sale and leaseback deal with CMB Financial Leasing for seven ultramax bulkers.

Allied Shipbroking, Intermodal and Lorentzen & Stemoco reported that Greek shipmanagment company Niriis Shipping acquired the 2005 Japanese-built 76,000 dwt panamax bulker Rosali from Empire Bulkers. The vessel has fetched a price of $9.85m.

More than five shipbroking houses reported the sale of the 1999-built 73,000 dwt panamax bulker Corviglia. The vessel is sold by Swiss owner Suisse Atlantique to Chinese interests for a price of $5.2m.

Intermodal listed an en bloc sale of two 2002-built 77,000 dwt panamax bulkers Nordkap and Nordpol. Danish owner Norden is believed to have sold the two Japanese-built vessels to Chinese interests for $14.5m in total. “We do not comment on individual sales and purchases, but it is an integrated part of the Norden business to be active in the market buying and selling vessels when the right opportunities come along,” the company responded when contacted by Splash in regards to the deal.

“Activity ramped up in the tankers segment as well last week, with the focus being equally shared between both crude and product 
tankers right now. The overall positive market outlook has already 
boosted buying appetite, with expectations being that increased 
activity will continue to follow in the coming weeks. Current discounts on secondhand vessels compared to newbuildings has also facilitated in further feeding this trend,” Allied Shipbroking said.

Allied Shipbroking, Lion Shipbrokers and Lorentzen & Stemoco all reported the sale of the 2002-built 37,000 dwt handy tanker Emmanuel Tomasos (pictured). Fast growing Indonesia owner Waruna acquired the South Korean-built vessel from Greek owner Super Eco Tankers for a price of $6.5m.

Intermodal, Lorentzen & Stemoco and Lion Shipbrokers listed the sale of the 2001-built VLCC Sea Horizon. The vessel was sold by Hong Kong’s Agritrade Resource to Singapore owner Ocean Tankers for a price of $22.5m.

Banchero Costa reported a deal in which Greek owner Pantheon Tankers Management sold its 2004-built 318,000 dwt VLCC Sea Lynx to Thailand’s Nathalin Group. The South Korean-built vessel has fetched a price of $31.5m. The ship is set to be used for storage purposes.

Intermodal and Banchero Costa listed the sale of the 2004-built 45,700 dwt product tanker Stavanger Breeze. The vessel is said to have been sold to Singapore’s Wilmar for $8.65m.

This past week continued to see little concluded secondhand containership sale and purchase deals.

According to Braemar ACM Shipbroking, rumours continue to swirl around the sales of two 3,426 teu boxships, Quadriga and Primavera, however the deal is yet to be finalised.

Intermodal reported a transaction in which Malaysia’s Harbour Link Group acquired the 1,032 teu Perth Bridge from Chinese owner Northstar Shipmanagement for an undisclosed price.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

Related Posts