Dry CargoOperationsTankers

Weekly Broker: Lethargy a symptom of the virus

Deals for secondhand tonnage are drying up quicker than people’s throats.

There’s the logistics of sealing a deal first up – being able to inspect a ship and get your crew to it has never been more tricky. Then owners are having to factor in the ramifications of a looming global recession, asking themselves is now really the time to be shelling out for more ships.

Allied Shipbroking noted that on the dry bulk S&P side, it’s been another quiet week, establishing even more emphatically the poor appetite surrounding the market.

“This is far from surprising, given the turbulent trajectory from the side of earnings and perplexed feeling among investors since the Covid-19 outbreak. Despite the modest effort noted in the capesize market during the last few days, it will take a lot more time before we are able to witness any robust confidence return to the dry bulk market as a whole,” Allied Shipbroking noted this week.

A host of brokers all reported that Japanese owner Mitsuhama Kisen sold its 2012-built 78,000 dwt panamax bulker Coral Amber for $14.5m. Indonesian owner Asian Bulk Logistics has been identified as the buyer of the Japanese-built vessel.

Multiple shipbroking houses all reported that Chinese owner Shining International has sold its only two vessels – the 2015-Chinese-built 38,900 dwt Smart Lisa and Smart Tina – to German buyers for around $12m each.

Unlike every other segment in shipping right now, there is plenty of action in tankers thanks to the oil price wars between Russia and Saudi Arabia.

“On the tankers side, it was another interesting week in terms of S&P activity taking place. Given the recent trends in respect to realized returns, the steep increase in buying appetite was a rather logical result, especially when considering how pessimistic the current view is for almost all other types of assets available in global markets at this point. All-in-all, with the excessive boost noted in freight rates, we expect a relatively strong S&P market to continue,” Allied Shipbroking said.

Allied Shipbroking and Lorentzen & Stemoco both reported a deal in which Saudi Arabian owner Bahri sold its 1996-built 300,400 dwt VLCC Gringo to Singapore buyers for storage uses. The Japanese-built vessel has fetched a price of $21m.

Advanced Shipping & Trading, Intermodal and Banchero Costa all listed the sale of the 2003-built VLCC Bunga Kasturi. Malaysian owner AET sold the Japanese vessel to Indian buyers for storage for $32m.

Both Allied Shipbroking and Lorentzen & Stemoco reported an en bloc sale deal in which Danish owner Norden sold two 2007-built 37,100 dwt MR tankers Nord Hummock and Nord Highlander to undisclosed buyers at $13.5m each. The deal also includes a two-year charter back arrangement.

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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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