Ship Owners Still Active in the S&P Market

Ship owners have been active in the S&P market, mainly for bulkers and tankers, but newbuilding orders have started to take a dive, as uncertainty over the future prospects of the global trade is mounting. In its latest weekly report, shipbroker Banchero Costa said this week that “in the dry market a modern Panamax Coral Amber 76,000 dwt built in 2012 at Shin Kurushima was sold at $14.5 mln to client of Asian Bulk Logistic (vessel to be BWTS fitted with SS/DD April 2022). Furthermore, a Chinese buyer was reported to be behind the purchase of Alexandros Theo 45,000 dwt built in 2000 by Tsuneishi Cebu at $3.9 mln. (SS/DD due June 2020). Aifanourios 50,000 dwt built in 2002 at Shanghai was reported sold at $4.9 mln. In the Handysize segment Japanese controlled unit Clipper Kamoshio 32,000 dwt built in 2009 at Kanda was sold at $7.2 mln to client of New Port, during January 2020 Global Gardaland 32,000 dwt built in 2009 at Hakodate was done at $7.8 mln. In the tanker market two MR1 Nord Hummock and Nord Highlander 37,000 dwt built in 2007 by Hyundai Mipo controlled by client of Norden were sold at $13.5 mln each including a tc back for 24 months. Back in February Ridgebury Nalini D 37,000 dwt built in 2008 by Hyundai Mipo was reported at $13.5 mln. A chemical tanker Winter Oak 13,000 dwt built in 2009 at Sekwang was bought at $6.5 mln by Singaporean buyer”.

In a separate weekly note, Allied Shipbroking added that “on the dry bulk side, things continue to remain at an overwhelming quiet state this week, with activity continuing to remain at a minimum, firmly establishing in an emphatic way the disruptions and the lack of buying appetite that is present in the second hand market right now. The COVID-19 pandemic is looking to likely to continue to leave the market at a very subdued state, while at the same time the expectation amongst buyers grows ever more towards the possibility that there will be a sharp flow of bargain hunting opportunities in the near-term, a fact that leaves many to refrain from acting now. On the tankers side, activity has also held at relatively subdued levels, though given the better performance that was seen in the tanker freight markets, and especially in the freight markets for crude oil tankers, it seems as though things have been kept slightly more lively here. Market disruptions have been evident here as well, while the slight scale back in freight rates has also influenced buying appetite”, Allied said.

Meanwhile, in the newbuilding market, Banchero Costa said that “in the dry segment a speculative order for a 4 x Kamsarmax bulk carriers was signed at Tsuneishi Shipyard, Japan with deliveries in 2021 and 2022. Three separate Japanese owners ordered at NACKS (Nantong Cosco) the construction of 4 x Kamsarmax, whilst Dalian COSCO KHI secured orders for 2 x 63,000 dwt Ultramax from Wah Kwong and China Merchant Bank: prices not available. A Chinese domestic order for 2+2 smaller Supramax 52,000 dwt at Yangzijiang for delivery late 2021 was placed by Shanghai Huayuan. In the gas market, Union Maritime officially entered into the segment by ordering 1+1 VLGC 91,000 cbm at Hyundai, Korea: vessels to be dual-fuelled and the order price was approximately $79 mln against a secured tc. Delivery is set for 2022”.

Allied added that “a further decline was noted last week in interest for newbuilding orders, as buyers remain reluctant to spend capital amid the uncertain economic environment that has been created as part of the COVID-19 pandemic lockdown. However, with the China and several other Far Eastern countries, seemingly having surpassed the worst part of the health crisis, we managed to see some slight flow of new orders trickle through last week. Business has started to re-open to some extent, a fact that may give some slight boost to new ordering activity over the coming weeks. Nevertheless, when looking at the bigger picture of what’s going on and seeing how the situation is unfolding in Europe and the US, we are likely going to see overall buying appetite remain at minimal levels. What’s more is that given how most of the major world economies are now struggling to cope under the pressure, there seems to be minimal appetite for speculation on this front, especially given that newbuilding prices are still relatively high comparatively to the current market conditions being faced as well as compared to the bargain opportunities most potential buyers now expect that they will find in the second hand market”.

Nikos Roussanoglou, Hellenic Shipping News Worldwide