The days are getting warmer, but dry bulk shipping and secondhand transactions are feeling more and more cold. Domestic shipbrokers predict that secondhand prices will decrease further if shipping market sees no recovery in the second half this year.
In the period, some buyers are enquiring about 15,000dwt bulk carrier at only CNY20m. However, demand and supply information for 5,000dwt and 20,000dwt-30,000dwt secondhand bulkers has been in sharp decline recently with owners and buyers’ confidence greatly depressed by continuingly weak coastal coal shipping rates. Besides, an owner is trying to offload a 2010-blt CCS-classed 23,000dwt at negotiable price after selling a same 27,000dwt one at CNY80m last year.
In addition, the PSPC coating requirements for 500GT and bigger international cargo ships delivered after July 1st has put more pressure on domestic shipbuilders, which further proves that technology innovation is absolutely the main power to improve production capacity.
Quotations and enquires for secondhand tankers both witnessed further decrease in the period. Shipowners’ willingness to sell vessels and buyers’ suppression of prices form a sharp contrast.
Wet shipping market has been relatively stable in the corresponding time, however overcapacity of tanker market has been more obvious. Although Chinese government has implemented corresponding policies to control tanker capacity after the lesson learned from bulker market, the oversupply is till on the way. However the government and owners are supposed to do better with more experience.
Demand for large tankers has decreased and only few 3,000dwt-4,000dwt secondhand tankers were reported changed hands. According to domestic tanker owner, China oil shipping market has begun to see more and more losses.
Tanker newbuilding prices have been more stable. The cost to build a 4,300dwt product tanker is about CNY28m or more at present.
Influenced by secondhand market, boxship newbuilding price also dropped mildly in the period. Major liners have begun to control newbuilding plans with low confidence in the market.
During the period, buyers from South East Asia are looking for medium and small Ro-Ro of 8-20 spaces.