Ship owners have increased their spending during the second quarter of 2012, bringing the total investment value of second hand vessel purchasing up to $6.1 billion for a total of 555 vessels during the first six months of the year said a new report from shipbroker Golden Destiny. According to the report, second quarter buys were up 24% since the first quarter, while in total the first half of 2012 showed a decline of 9% compared to the same period of 2011, which is a remarkable feat, when considering the global economy uncertainty, the oversupply of tonnage in dry bulk and most other shipping markets and the lack of financing especially in Western Europe.
According to Golden Destiny, dry bulk carriers and tankers accounted for 33% and 26% of the total investment, while containers and liners follow with a 14% and 11% share respectively of the total S&P activity. The bulk carrier, gas tanker and container segments have shown a sharp revival in the volume of vessels reported to have changed hands from the previous quarter with a 31%, 44% and 39% increase respectively. The total amount of money invested for secondhand units this year is lower than the first half of 2011, 43% down, when 610 vessels had been reported to have changed hands at more than $10.7bn, with 103 sale and purchase transactions at an undisclosed sale price.
HELLENIC SHIPOWNERS
“Hellenic owners has also improved from the first quarter of the year by showing an 18% increase in the number of units reported sold, with bulk carriers and tankers continue to be on their spotlight, by holding 42% and 33% share of their total S&P activity, while there has been a remarkable 333% in their purchases of boxships from the first quarter. Their appetite remains more intense, from the first quarter of the year, in the purchase of secondhand units rather than in the placement of new contracts. During January-June 2012, 83 vessels reported to have sold to Hellenic interest at a total invested capital of more than $1.7 billion, 3 sale and purchase transactions reported at an undisclosed contract price, compared with 70 newbuilding units reported on order by Hellenic owners at more than $3.6 billion. Their total amount of money invested in the secondhand and newbuilding market is more than $5,.billion with Hellenic investors showing their strength under the adverse economic and freight market fundamentals in comparison with their Chinese rivals, who have invested more than $1.75billion in both markets. Hellenic secondhand buying momentum grasps 15% of the total S&P activity compared with 9% of Chinese.
In comparison with the volume of activity during the first half of 2011, there has been 24% decline in the total amount of money invested by Hellenic owners and a 13% retreat of their secondhand buying appetite, when 95 vessels went to Greek hands at more than $2.2 billion, with bulk carriers and tankers capturing 67% of their buying appetite. Chinese secondhand buying momentum has shown a sharper contraction with a 41% downfall in the total amount of money invested and 33% slower purchasing activity” said the report.
In total (including all ship owners) the bulk carrier segment has shown a 31% increase with a total 105 vessels reported to have changed hands during April-June 2012 from 80 vessels in the first three months of the year, while a total of 185 vessels reported sold during the first half of the year at a total invested capital of more than $2.5bn, 11 sale and purchase transactions reported at an undisclosed contract price. “Amid the severe freight market status with capesizes struggling to cover their operating expenses and BDI crawling to remain above 1,000 points, investors haven’t lost their buying appetite by slowing their secondhand purchases only 6% down from the first half of 2011, when 196 bulk carriers changed hands at a total invested capital of more than $3.4billlion. The bulk carrier segment is the segment that posed the least downfall among other vessel categories in the purchase of secondhand units compared with the first half of 2011.
In the tanker segment, secondhand purchasing activity is standing only 10% higher from the first quarter of the year, with investors showing less faith in the purchase of tanker vessels than dry bulk carriers. The first half of the year ended with 145 tankers in total reported to have changed hands at a total invested capital of more than $1,8 bn, 12 sale and purchase transactions reported at an undisclosed sale price, posing a 12% downfall from January-June 2011, when 165 tankers reported on sold at a total invested capital of more than $4billion. The container segment appears to be the only segment showing a remarkable increase of 55% in the secondhand buying momentum from the first half of 2011. It seems that the revival of the spot container freight market in the main line haul trading routes and the appealing low asset prices stimulated bigger confidence in the purchase of secondhand boxships than the first half of 2011. During January-June 2012, 79 boxships reported sold at a total invested capital of more than $740mil, when in the first half of 2011, 51 containers had been reported sold at a total invested capital of more than $1,474bn” the report concluded.