The trading activities of secondhand bulkers kept the low tone in the last period despite the increasing of enquiries about small bulkers.
Domestic coastal shipping freight rates continued to fall nearly to an historical low in the period. More shipowners will face operational predicament if the momentum continues. Therefore, buyers take advantage of the condition to make every attempt to lower prices for cheap ships. However, the increase of enquiries failed to drive up actual transactions. On one hand, the current prices were still not low enough for buyers. On the other hand, the uncertainties of the market scare most buyers because no cheap ships can survive without actual shipments.
The enquiries in the sector mainly focused on 3,000-5,000dwt and 10,000-16,000dwt secondhand bulk carriers. Some buyers from South East Asia are looking for low-prices ships in China. Bigger ones, such as 20,000-30,000dwt bulkers, were more quite – owners are reluctant to dispose their vessels at low values while buyers are unwilling to offer better prices.
Domestic shipbrokers say that enquires for five-year 5,000dwt bulkers are relatively active, however, assessment for the type still fell due to buyers’ low prices.
Comparatively speaking, secondhand tanker market was more stable in the period. The elimination of single-hull tankers had speeded up with few state-owned big oil companies requiring shipowners to use double-hull tankers. Grade III tankers saw few enquiries while some buyers looked for Grade I tankers.
New-built 4,500dwt tankers’ performance was quite plain due to the overcapacity. Most tanker owners operate oil transportation by themselves and thus have no financial pressure, which keeps the market more stable.
Buyers from South East Asia are more interested in elder Japan-built tankers, but these tankers in domestic services are mostly in poor conditions due to inadequate maintenance.
In the period, international container shipping freight rates remained at high level after mild weakness. International traders face more pressure for liners are stilling trying to boost the rates.
Newbuilding market kept the bleak situation with only few enquiries witnessed about offshore plants from some owners from South East Asia.
The price for scrapping ships saw continuing decline in the time when steel price dropped rapidly for steel mills’ overcapacity.