Dry Bulkers Still In Demand

Ship owners are still craving for dry bulk carriers, as evidenced by the latest weekly reports. Shiproker Banchero Costa said this week that “in the dry market 2 x Kamsarmax under construction at COSCO Zhoushan were sold en bloc at $29mln each basis prompt delivery. A Chinese built Panamax, the Genco Thunder, 76,000 dwt built Jinagnan in 2007 was sold at $10.4mln to Greek buyers. In the Supramax segment the Darya Mahesh, 56,000 dwt built 2008 by Mitsui was reported sold to European buyers at $12.5mln, two weeks ago the Torenia 56,000 dwt, built in 2007 by Mitsui was sold at $11.3mln. In addition, two Chinese built Supramax, the Lefkoniko and the Anogyra bouth around 57,000 dwt built in 2010 and 2011 respectively b Jiangdong were sold en bloc at $10mln each. In the Handysize segment, after offers were invited last week a 2008 Hakodate built 31,000 dwt, the Global Endeavor is now reported sold to Vietnamese buyers at $8.6mln. A month ago the sistership Elvira Bulker built 2011 achieved $10.2mln. In the tanker market a modern VLCC, the Nagaragawaabt, built 2010 by IHI was sold to Idemitsu at $48.5mln”, Banchero Costa noted.

In a separate weekly note, shipbroker Allied Shipbroking said that “the slowdown in terms of activity resumed this past week on the dry bulk market, with the slide in freight rates curbing investor interest. However, a fair number of smaller units, mainly Supramax and Handysize vessels, changed hands this week, with buyers seemingly focusing on the less volatile segments. In the case that freight rates correction continues to push on, activity is expected to remain at moderate levels, while the reluctance amongst buyers may well push for some further price correction to be seen. Softening in terms of activity was witnessed last week on the tankers side as well and despite the improved momentum noted lately in the freight market. A rebound though is anticipated, especially on the oil products segment, as investors are looking keen to return to the SnP market as we approach the end of the year. In the crude oil space, things are a bit more quiet and are expected to remain so for the time being despite the sharp boost in freight rates being noted”.

Meanwhile, in the newbuilding market this week, Banchero Costa said that it was “a rather quiet week for the newbuilding market. Pangaea Logistic exercised an option for two more 95,000 dwt Post-Panamax bulkers with ice class 1A at $38mln apiece, the orders are backed by a 10 years COA to Baffinland Iron Mines serving the Canadian Arctic. Central Shipping went back to their favourite yard, HMD (16 units already delivered and 7 units on order) by adding 3 more MR2. All units are Tier III and scrubber fitted; we understand the price was in very high $30s mln. In the Gas sector, Thenamaris added the third LPG carrier at Hyundai Mipo for delivery August 2021, the price is in the region of $53.8mln”.

In a separate note, Allied Shipbroking added that “newbuilding activity returned to subdued levels last week, with buyers taking a step back, probably being affected by the persisting correction witnessed in the dry bulk freight market of late. Given the slump that was noted in the freight market earlier in the year, it is of little surprise that investors seem a bit reluctant to proceed with new contracts for now. It would take a fair rebound in rates and earnings to drive activity up though there is some expectation that this might be a bit more active during the next couple of months as we approach the end of the year. On the tanker side, newbuilding activity remained at fair levels for another week, with petroleum product units being the main focus point. The rising freight market and the bullish sentiment that is starting to show face once again in this sector has triggered investment appetite for new order contracts, despite the fact that offered prices are still keeping at relatively strong levels. Things are expected to remain firm over the final quarter of the year, with the positive forward outlook boosting sentiment and buyers’ appetite”, the shipbroker concluded.

Nikos Roussanoglou, Hellenic Shipping News Worldwide