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Weekly Broker: Looming price shift between different age groups holds owners back

Solid freight rates seen in the dry bulk sector kept secondhand sales ticking over at a decent click this week. However, there has been a noticeable pull back from big investment decisions as owners take in multiple factors about the outlook for ship prices. This wait-and-see approach, combined with the traditional northern hemisphere summer lull, is expected to see S&P markets quieten down for the coming few weeks.

“On the dry bulk side, activity was set back into motion, with a fair volume of units changing hands. This does seem to have been at a cost however, with prices having felt some downward pressure on certain deals. It looks as though buyers have taken a slight step back this past month and in combination with a number of market disruptors such as the recent regulatory shift in China with regards to the import of ships, it looks as though we may well be in the midst of a strong restructuring of the overall market and sharp shift in price levels between different age groups,” Allied Shipbroking said in its latest weekly report.

Multiple shipbroking houses reported a deal in which Japanese owner Doun Kisen Kaisha sold its 2008-built, 55,522 dwt supramax bulker Navios Armonia. The Japanese-built vessel is said to have been sold to Greek interests for a price of $14.2m.

Both Allied Shipbroking and Advanced Shipping & Trading reported that the 2003-built, 50,457 dwt supramax Kaity L has been sold by Greek owner Vrontados Shipping to Chinese interests. The Chinese-built vessel has fetched a price of $8.2m.

More than five shipbroking houses including Allied Shipbroking, Banchero Costa, Intermodal, Lorentzen & Stemoco and Andreas J. Zachariassen all reported an en bloc deal of two 81,093 dwt sister kamsarmax bulkers – the 2015-built Hanton Trader V and the 2016-built Hanton Trader VI. The two Chinese-built vessels were sold by Japanese owner Nisshin Shipping to an undisclosed buyer for $48.5m in total.

“On the tanker side, once again the flow has held at reasonable levels, while we continue to see a strong amount of en bloc deals taking place. This week that entailed two blocks of VLCCs changing hands, though both seemed to have been done at prices levels which were slightly better than previous similar sales,” Allied Shipbroking said.

Both Intermodal and VesselsValue listed the sale deal of Nissen Kaiun’s 2009-built VLCC Bright Harmony. Greek owner Epaminondas Embircos’ Aeolos Management is said to have acquired the Japanese-built crude tanker for a price of $41m.

In the secondhand containership sale and purchase market, German owners continue to clear out their tonnage.

Andreas J. Zachariassen listed the sale of two 2012-built 1,740 teu container vessels, Wellington Strait and Winchester Strait. The two Chinese-built vessels were sold by German owner Rehder Carsten to two separate buyers. The Wellington Strait is said to have gone to XT Shipping of Israel for a price of $14m, while Winchester Strait is sold to undisclosed buyers for $13.9m.

In the smaller sector, Allied Shipbroking, Lorentzen & Stemoco and Andreas J. Zachariassen all reported that Greek owner Contships has bought two 2006-built 1,118 teu container vessels, the Vega Luna and Vega Lupus from German owner Vega Reederei for an undisclosed price.

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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