To most shipbrokers’ delight, enquiries for secondhand bulkers were on the rise in the last two weeks although domestic coastal dry bulk shipping market continued the downturn. The enquiries mainly focused on 5,000dwt and smaller bulkers as well as 10,000-20,000dwt ones for domestic services.
The price is still the key in transaction activities and buyers are devoted to picking the best ships at low prices. A shipbroker revealed that a shipowner wants to sell a six-year 10,000dwt bulker at about $2.4m, but yet the buyer asked to lower the price to $2.1m. Even in the current depressed market, the price difference was also quite considerable.
Internationally, a North Korean buyer is looking for 3,000dwt bulkers. Some domestic owners are enquiring about 20,000-50,000dwt Handysizes for South East Asia routes services with the local cargo volume growing sufficient recently.
The indices and assessments for secondhand bulkers went on the decline momentum. Few five-year 5,000dwt bulkers were reported to be changed hand, but the contract values are mostly quite low. An owner even plans to buy a seven-year 5,000 bulker at CNY6.0m. Three-year 16,500dwt bulkers are likely to enter “phase-out” cycle due to the lasting weak freight rates and the same condition goes for three-year 22,500dwt type.
Secondhand tanker transactions remain the plain tone. With the control and supervision for tankers growing stricter, more owners intend to offload tankers on hand, especially 3,000dwt ones. At the same time, some owners are eager to sell tanker built in 90s. Luckily, with its economic growth, South East Asian countries demand for different ships are on the rise and some cost-effective elder ships are suitable for the market.
Some single-hull Grade III tankers have been converted into double-hull, but the owners still have to sell them out due to the much weaker conditions for dirty tankers. Besides, insiders propose to sell the newbuilt 4,500 product oil takers recently delivered.
Meanwhile, the inburst of large number of new-built tankers has further depressed the secondhand market, which needs more time to reach balance again.
In the period, international container shipping rates take a great plunge into downturn trend. Besides, European shipping market face more uncertainties with Euro Zone economy confronts severer challenges.
New orders witnessed further weakness in the last two weeks and shipyards are still struggling for survival. Breakthrough in technology of high-value-added vessels is acknowledged as the game-changer and the way out.
The drop of steel price has greatly hindered scrapping market. High storage and low demand are likely to obsess steel market for longer period.