Weekly Broker: Chinese lead the way as market enters summer slowdown

Weekly Broker: Chinese lead the way as market enters summer slowdown

We have seen another strong week recorded for the capesize market, which has boosted the BDI to a new 2018 high of over 1,600 points. Other bulker segments are lagging behind however as are sale and purchase activities. Summer holidays in the northern hemishphere could well be to blame. Chinese buyers have led the way in this muted week with the clock ticking to a mid-August Beijing clampdown on non-Tier II ship imports.

“On the dry bulk side, activity slowed down even more this past
 week, with very few transactions coming to light. Buying interest
 varied between the different size segments, while in terms of age,
 the main focus stayed mostly on vintage units. Given the recent ship 
import restrictions announced from China, we are likely to continue
 to see an increase in activity being noted for vintage units over the coming weeks, though this increased buying is unlikely to help feed
 any boost in terms of price levels achieved,” Allied Shipbroking said in its latest weekly report.

More than five shipbroking houses reported the sale of the 2010-built panamax bulker F.D. Vittorio Raiola. Greek owner Soloi is said to have acquired the Japanese-built 76,000 dwt bulk carrier from Japan’s Taiyo Kaiun Kaisha for a price of $18m.

Seasure Shipbroking and Advanced Shipping & Trading both reported that Greek owner Gourdomichalis Maritime sold its 2003-built 53,400 dwt supramax Kavo Aetos to Chinese buyers. The Tsuneishi Cebu-built vessel has fetched a price of $9.45m.

Several shipbroking houses including Intermodal, Allied Shipbroking and Lorentzen & Stemoco all listed the sale of the 2001-built hanysize bulker Oriente Shine. The Japanese-built bulker was sold by NYK to Chinese interests for a price of $7.2m.

Multiple shipbroking reports had the en bloc deal of two 1999-built handysize bulkers the Genco Progress and Genco Explorer. Genco sold the two Japanese-built vessels to Chinese interests for $5.6m each.

“On the tanker side, we witnessed again a fair level of S&P deals take place this past few days. Moreover, once again the largest share of units were part of an en bloc transaction, reinforcing the fact that we are still seeing keen buying interest for bargain fleet deals. Given the speculative sentiment being expressed by most buyers with regards to the not so distant prospects of the market, it looks as though buying appetite will remain at relatively healthy levels for the time being,” Allied Shipbroking said.

Clarkson, Lorentzen & Stemoco and Intermodal all reported a deal in which Dutch owner Iver Ships, a unit of Vroon, have sold the 2000-built 45,650 dwt MR tanker Iver Experience to Indian owner Seven Islands Shipping for around $7m.

Seasure Shipbroking and Lorentzen & Stemoco all identified Nigerian company Matrix Energy as the buyer of the 2005-built product tanker Nord Farer. The South Korean-built tanker was sold by Norden for a price of $11.5m.

Additionally, both Intermodal and Allied Shipbroking listed a deal in which Danish owner Monjasa acquired a 2000-built 2,713 dwt smaller tanker Vinga Safir from Swedia for an undisclosed price.

There were no major secondhand containership deals to report in the past week.

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.

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