Weekly Broker: Sale volumes up despite rates coming under pressure

Weekly Broker: Sale volumes up despite rates coming under pressure

The sale and purchase market for both bulkers and tankers has seen a rebound from the previous week with substantial deals reported, despite rates coming under pressure.

According to a report by Allied Shipbroking, average prices for secondhand bulk carriers in almost all size and age groups dropped by 1% to 6.3% in the past month while average prices for secondhand tankers in most sizes and age groups increased during the same period with the most notable growth of 18.8% for 15-year-old 250,000 dwt VLCCs.

“On the dry bulk side, a good flow of transactions took place during the last couple of days or so. We are still not witnessing the excessive volumes of previous weeks, despite the more stable scene that is currently portrayed in terms of earnings. It could be that there is still a residue of uncertainty overshadowing the freight market, leaving for limited investment appetite to be held right now. For the time being, we can expect many good deals coming forward, with interest shifting between all size and age classes,” Allied Shipbroking said.

Both Allied Shipbroking and Intermodal reported a deal in which Greek owner New Vision Shipping acquired the 2011-built 55,600 dwt supramax bulker Centenario Blu from Japanese owner Meiji Shipping for a price $13.6m.

More than eight shipbroking houses reported that Norway’s Stove Rederi sold its 2007-built 55,800 dwt supramax bulker Stove Phoenix to Indonesian buyers. The Japanese-built vessel has fetched a price of $11.3m.

Banchero Costa, Intermodal, Optima and Anchor Shipbroking all listed the sale of 2001-built supramax Star Epsilon. The Japanese-built vessel was sold by Greek owner Star Bulk Carriers to Middle Eastern interests for $6.5m.

“On the tanker side, an impressive rally was noted in terms of SnP deals during the past few days, despite the considerable slowdown of just a week prior. This may be partially that many market participants got caught by surprise, given the sudden freight market shift. All-in-all, despite the general conservative mood, there may well be enough room to see more activity take shape in the short-run,” Allied Shipbroking said.

Several shipbroking houses reported that Taiwanese owner Formosa Plastics sold its 2009-built 46,800 dwt tanker FPMC 18 while Allied Shipbroking identified the buyer as Singapore’s Winson Oil. The Chinese-built vessel has fetched a price of over $12m.

Allied Shipbroking reported an en bloc sale by US investment company Apollo Fund. The company sold four STX-built 46,000 dwt MR2 tankers Port Union, Port Said, Port Stanley and Port Moody, all built in 2002 and 2003, to undisclosed buyers for $29m in total in a bank-led sale. Following the sale, the company’s fleet will be left with one 38,900 dwt MR1 tanker Port Stewart.

Multiple shipbroking houses including Seasure Shipbroking, Advanced Shipping & Trading, Allied Shipbroking and Banchero Costa all reported an en bloc deal in which German company Columbia Shipmanagement sold two 2000-built 37,400 dwt MR tankers Baltic Chief 1 and Baltic Captain 1 to Greek interests for $5.5m each.

Advanced Shipping & Trading and Seasure Shipbroking identified Chilean owner Vepamil as the buyer of the 2014-built MR tanker Nord Geranium from Danish owner Norden. The vessel has fetched a price of $25m and has been time chartered to Ecuador’s state owned company Flopec.

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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