Shipbroker reports are indicating a strong activity in second hand vessel acquisitions. According to Shiptrade Services, a total of 38 vessels of all types and sizes were reportedly sold. This despite the slow momentum of the dry bulk market, which has been plagued by oversupply issues.
“The following are some indicative sales that have attracted attention. M/V “F.D Cris De Angelis” (About 74.400 DWT built 2007 Hudong CHN) has been reported sold to Undisclosed buyers for USD 31 mill and M/V “Corona” (About 73.600 DWT built 2007 Jiangnan CHN) sold to Diana Shipping for USD 30 mill. It seems that Panamaxes continue to be of interest for the Buyers. M/V “Lady” (About 41.000 DWT built 1985 Oshima JPN) was reported sold for USD 7.55 mill to undisclosed buyers, which is about 0.5 mill higher than the sale of the slightly larger M/V “Century Ace” (About 42.600 DWT 1985 built Mitsui JPN) for USD 6,8-7 mill one month ago. Purchase enquiries have shown an increase for Dry cargo vessels of all sizes, while in the wet sector MR’s and Aframaxes kept the interest firm, followed by VLCC’s and LR1 tankers” said the shipbroker.
In a earlier separate report, Golden Destiny said that the previous week had ended with 46 sales (including the demolition market). “Strong activity has been witnessed in the gas segment for this week, while modern container sales including time charter agreements have attracted strong buying interest. In the tanker segment, an enbloc resale of two VLCCS of 320,000 dwt at region $100 mil each have grasped the headlines of the week, while in the bulk carrier segment the activity is quite soft with asset prices still not reflecting the current status of the freight market. Overall, 46 vessels reported to have changed hands this week at a total invested capital in the region of US$ 612.25 million. In terms of the reported number of transactions, the S&P activity has been marked with a remarkable 43% positive w-o-w change, while is up by 109% comparable with previous year’s weekly S&P activity when 22 vessels induced buyers’ interest with bulk carriers grasping the lion’s share, 63% share and tankers only 27% of the total volume of S&P activity. In the recent week, tankers, including gas carriers have attracted investors’ appetite grasping 54% share of the total business. In terms of invested capital, the most overweight sector for this week appears to be the tanker segment (including gas carriers) at a total invested capital more than $300 mil” said the shipbroker’s report.
In the demolition market, the week closed with some positive news for the buyers in Chittagong to import units and stock their yards as two months extension has been granted amid fears for a possible market shutdown. Scrap prices are still holding solid with India offering the best levels and Bangladesh standing one step behind to narrow the price gap. Pakistan and China are in a constant battle, but their levels are lagging behind and with the two months extension in Bangladesh it seems harder to outpace their rivals in terms of price levels and scrapping tonnage. Demo countries are offering $500-$510/ldt for dry and $520-$540/ldt for wet cargo, while the oncoming monsoon period may ease traditionally the soaring prices offered.
Hungry appetite for large size units persists with capesize tonnage being on the forefront and very large crude carriers being on the demolition scene. Abysmal freight rates for very large units either in the dry or wet market have enlarged even more the scrapping momentum.
The week ended with 18 vessels reported to have been headed to the scrap yards of total deadweight 1,372,536 tons. In terms of the reported number of transactions, the demolition activity is standing at the similar levels of last week with ongoing strong scrapping interest in VLCCS and capesize bulk carriers. Demolition activity in the bulk carrier segment is up by 300% from at similar week in 2010 when only 2 had been reported for scrap. In terms of scrap rates, the highest scrap rate has been achieved this week in the tanker sector for a VLCC tanker of 264,892 dwt “FALKONERA” at 33,334 /ldt for $540/ldt Bangladesh /Pakistan
range. In terms of volume of transactions, India is still on the frontline by attracting this week 50% of the total demolition activity. At a similar week in 2010, demolition activity was down by 22%, in terms of the reported number of transactions with 14 vessels to had been reported for scrap of total deadweight 237 mil tons. China was the key player by paying $400/ldt for dry and $425/ldt for wet cargo and Bangladesh was offering just $375/ldt for securing dry and $410/ldt for wet cargo.