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Weekly Broker: S&P takes sick leave

The S&P activities in all bulker, tanker and containership sectors have fallen this week as the impact of the coronavirus continues to weigh heavily on the shipping markets. The increasing uncertainties in the market and the difficulties of inspecting and delivering ships as more and more regions of the world are shutting down, have pushed buyers to the sidelines.

“The quarantine regulations in some airports and ports worldwide led to huge difficulties for owners that wanted to arrange pre-purchase inspections, while delays were also observed in taking delivery of vessels. Naturally, many prospective buyers changed their mind and decided to wait until after there is more clarity regarding the current situation,” said Konstantinos Kontomichis, an S&P broker at Intermodal.

“On the dry bulk side, it was a very disappointing week in terms of transactions taking place. More disappointing is the fact that this was of little surprise to many, given the uncertain economic environment surrounding the shipping industry at this point. Whether this is just a temporary situation, or that buying appetite has experienced a strong hit remains to be seen. For the time being, we can say with some confidence that most of the business activities are vulnerable to continuous disruptions as part of the virus pandemic, a fact that will definitely add an asymmetrical tone to SnP activity over the coming time period,” Allied Shipbroking said in its latest weekly report.

Allied Shipbroking, Intermodal and Lorentzen & Stemoco all reported the sale of the 1997-built 72,000 dwt panamax bulker Ocean Pride. Hong Kong owner Kwai Sze Hoi-owned Ocean Longevity sold the Japanese-built vessel to Chinese buyers for$4.4m.

Several shipbroking houses listed the sale of the 2017-Japanese-built 63,500 dwt ultramax bulker African Bari Bird. Japanese ower Asuka Kisen sold the vessel to Norwegian owner Belships for around $24.5m.

“On the tankers side, the scene was also sluggish, with just a handful of transactions coming to light as of late. Notwithstanding this, given the recent trends from the side of earnings, it will certainly push buying interest for these types of units, eventually resulting to a more vivid sales market the upcoming weeks,” Allied Shipbroking added.

Both Alibra and Advanced Shipping & Trading reported that Greek own Capital Maritime and Trading sold its 2014-built 320,900 dwt VLCC Miltiadis Junior to undisclosed buyers. The Chinese-built vessel has fetched a price of $69.5m.

Intermodal, Lorentzen & Stemoco and Anchor Shipbroking reported a deal in which Indian owner Aza Shipping sold its 2000-built 150,700 dwt suezmax tanker Mogra to Venezuelan buyers. The Japanese-built vessel went for $17m.

Lorentzen & Stemoco listed the sale of the 2005-Japanese-built 106,000 dwt aframax tanker Negishi Maru. Japanese owner JX Ocean sold the vessel to Indonesian interests for $15.3m.

The secondhand containership S&P market has seen a notable slowdown in both concluded deals and enquiry over the past week due to the outbreak of coronavirus according to Braemar ACM Shipbroking.

“Finding ports where one is able to effect a crew change and deliver a vessel is becoming ever more challenging as more and more countries are closing their borders. That being said, fortune does favour the brave and those who are able to find solutions to these problems are likely to be able to secure some attractively priced vessels in the near term,” Braemar said in its report.

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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