With global financial crisis getting worse, China economy has also turned to the downturn. Shipbuilders and shipowner are all striving for survival under growing pressure.
In this condition, secondhand bulker transaction activities remain plain in the period. The demand for 10,000-20,000dwt bulkers increased thanks to the recovery of coastal coal shipping market. On the contrary, enquiries for small bulkers of 2,000-5,000dwt keep declining. The demand and price for mega bulkers see further decrease.
It is reported that a ten-year 5,000dwt bulkers was changed hand at about CNY7.6m and an eight-year 1,300dwt bulker was sold at about CNY1.3m. Besides, according to a domestic shipyard, the newbuilding cost of an 80,000dwt bulker for international services is about CNY27.0m.
In the period, indices for different secondhand bulkers remain downturn momentum. Although the freight rates see mild recovery recently, ship prices and market demand are still weak.
The conditions for secondhand tankers are either not so bright. Enquiries are weak while ships for sale increase greatly, especially for 8,000dwt and bigger product oil tankers. More owners are planning to stop purchasing tankers with the overcapacity growing severer.
The current quotation for a 2011-blt 8,8000dwt CCS product tanker is about CNY49.0m and that for new-built 8,5000dwt one is about CNY47.5m. As for tanker transactions, a 3,500dwt Grade I tanker built in Japan in 1985 was traded at a price of CNY6.0m.
In the period, enquires for 2,000-3,00dwt tankers are on the rise and are mostly for double hull. However, the ship type is relatively rare in current domestic market and buyers could consider ordering new vessels.
The secondhand tanker indices also keep descending under overall slack. Price for 3,000dwt dirty tanker see greater declines with enquires growing.
In secondhand boxship market, 5,000dwt boxship and MPV are enquired in the period. Current assessment for seven-year same ship is about CNY11.0m.
The demand for 3,000 deck barge with ramp is still strong. The government’s encouraging policies for offshore sector is supposed to back its development.
Steel price and scrapping rates in the period underwent great declines and the future for demolition market is still full of uncertainties.