Weekly Broker: Dog day afternoons for S&P markets

Weekly Broker: Dog day afternoons for S&P markets

It seems that the summer holiday season has come for the sale and purchase market. Softer activity has been seen in the past week despite the generally hopeful outlook on the chartering market.

According to brokers Alibra, an “optimistic” capesize market has filtered through to the period market that has seen revived enquiries in the past few days, with interest shown in long-term contracts. However, the summer stupor has been more keenly felt for panamaxes and supramaxes.

“On the dry bulk side, things were relatively slow this past week compared to the typical volumes that we have been used to seeing over the past 12 months… This isn’t much of a surprise given the levels freight rates have reached recently, while beyond this, it seems as though the recent shift in the regulation of imported ships into China has surely made its mark and we are likely to see buying focus shift ever more to more modern units,” Allied Shipbroking said in its latest weekly report.

Following Beijing’s new regulation for importing ships into the Chinese market, Banchero Costa has noticed that the number of enquiries for post-2011 built units growing. On the contrary some pricing pressure has been detected on early-mid 2000 supramaxes and panamaxes.

Allied Shipbroking, Intermodal and Lorentzen & Stemoco all reported an en bloc deal in which South Korean owner Sinokor has acquired four capesize bulkers – Stella Annabel (2011-built), Stella Charlene (2012-built), Stella Grace (2012-built) and Stella Jade (2012-built) – from Singapore’s Cara Shipping, the shipping unit of China’s Rizhao Steel. The total price for the vessels is $115m. At the end of July, fast expanding Sinokor also ordered four newcastlemaxes at China’s Waigaoqiao Shipbuilding.

Allied Shipbroking and Andreas J. Zachariassen both identified Greek owner Ismini Panayotides’ Pavimar as the buyer of Toisa’s 2016-built panamax bulker Trade Prosperity. The 82,086 dwt Chinese-built vessel has fetched a price of $24.5m and has been fixed to Louis Dreyfus for a rate of $13,500 per day. Pavimar took over another Toisa bulker, Trade Will, in June.

More than five shipbroking houses reported the sale of the 2001-built panamax Dubai Star. The 75,200 dwt South Korean-built vessel is said to have been sold to Chinese interests for a price of $8m.

“On the tanker side, things seemed to have stepped back slightly in terms of activity. This has mainly been due to the slightly softer buying interest being observed in the market right now, while this lack in competition amongst buyers has also been reflected in terms of price levels being observed,” Allied Shipbroking said.

Multiple shipbroking houses reported Greek owner Lemos CM’s en bloc sale of two 2006-built VLCCs, the Symphonic and the Gloric. Advanced Shipping & Trading has linked the sale with UK owner Zodiac Maritime. The price for each vessel is $33m.

Banchero Costa reported a deal in which Greek owner Paris Latsis’ Latsco Shipping has acquired two product tankers, the 2006-built 105,400 dwt River Eternity and the 2009-built 105,200 dwt Sigma Integrity from Japanese owner K Line and German owner Reederei NSB respectively. River Eternity was sold for $15m while Sigma Integrity fetched a price of $21.5m.

In the secondhand container sector, activity has been muted, with many traditional container players taking a step back for the quiet summer months.

According to Braemar ACM Shipbroking’s weekly container briefing, the 2010-built 4,398 teu boxship Patraikos has been sold to MPC Container Ships by Greek owner Dioryx Maritime for $14.4m.

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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