Weekly Broker: Tanker bargain hunting

Weekly Broker: Tanker bargain hunting

Q4 always tends to bring S&P deals out of the woodwork and 2018 is proving no exception with Greeks very much to the fore, bagging available bulker tonnage as well as hoovering up sensationally cheap tanker deals where prices for crude ships are now hovering around historic lows.

“On the dry side we witnessed a fair gear up in activity noted the past 
few days, with interest varying relatively equally between vintage
and more modern units. Notwithstanding this, given that we have
 only just entered the final quarter of the year and with buying appetite seemingly ample in volume, a further boost in activity seems to be in the works. To what extent this increased activity could drive for further price hikes seems to be a bit more difficult to place,” Allied Shipbroking said in its latest weekly report.

Several shipbroking houses listed an en bloc sale deal of two 2011-built 56,600 dwt supramax bulkers, Grand Pioneer and Grand Breaker. The two Chinese-built vessels have been taken over by Chinese interests from Bergen Capital Management for a price of $11.5m each.

More than eight shipbroking houses reported a deal in which Belgium owner Cobelfret sold its 2001-built 173,000 dwt capesize bulker Lowlands Longevity to South Korean interests while Lorentzen & Stemoco and Advanced Shipping & Trading identified the buyer as South Korean shipowner Five Oceans Coporation.

Splash understands Greek owner Diamantis Diamantides’ Marmaras Navigation has acquired the 2009-built 169,100 dwt capesize bulker SC Lotta from German owner KGAL. Following the deal, KGAL has cleared out its entire bulker fleet and will focus on tankers.

“On the tanker side, it seems to have scaled back this week, though this seems to have coincided with a switch in interest from the product tanker segments over to the crude oil carriers. A small clampdown can be identified from the buying side front, despite the opportunities, that are available. Moreover, given that, for the time being, the main focus is mostly for vintage units, buyers look to be more bargain hunting than anything else,” Allied Shipbroking said.

According to multiple reports Evangelos Marinakis’s Capital Maritime & Trading has sold four newbuild VLCCs at Samsung Heavy Industries to Chinese financiers CMB Financal Leasing and ICBC Leasing as part of sale and leaseback deal. The total value of the deal is around $200m. Marinakis also took a TCC aframax, CSK Shelton, earlier this week for around $13m.

There were no secondhand containership sale and purchase deals to report this past week.

“With charter rates continuing to slip and the majority of buyers taking a ‘wait and see’ approach to secondhand tonnage, demo continues to be the focal point of concluded sales,” Braemar ACM noted in its most recent containership report, adding: “With recycling prices at historically attractive levels and charter rates falling ever closer to break even levels, we expect further tonnage to come into the market over the next few weeks as owners look to capitalise on these strong prices.”

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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