The recent rally of the dry bulk market is spurring heightened levels of ship purchasing activity, as a result of renewed optimism from ship owners looking for bargains, in order to take advantage of the higher freight rates. According to the latest report from Golden Destiny, the past week saw firmer activity in the purchase of liner units, while the buying momentum in the bulk carrier and tanker segments seems to follow a steady pace of growth. “Liners hold 37.5% of this week’s total volume of reported secondhand transactions versus 25% each of bulkers and tankers.
Overall, 16 vessels reported to have changed hands this week at a total invested capital in the region of US$ 205 million, with two transactions reported at an undisclosed sale price . In terms of the reported number of transactions, the S&P activity is up by 78% from last week’s activity and down by 36% comparable with previous year’s weekly S&P activity when 25 vessels induced buyers’ interest with bulk carriers and tankers grasping 72% share and containers 20% share of the total volume of S&P activity. In terms of invested capital, bulk carriers and liner attracted this week almost equally invested capital, around 34% of the total amount of money invested, due to an enbloc sale of three liner units of only 2years old of about 17,000 dwt at a total sale price of region $65 mil.
In the dry market, notable deal of the week is the sale of a panamax resale M/V “CONTI SPINELL” of 75,200dwt built 2011 China at $30,3 mil, whereas at the beginning of May a similar panamax vessel but an older one of 73,593dwt built 2007 China was reported sold for $30mil. In the wet market, a bank forced sale has been witnessed this week for a suezmax vessel M/T “Hellespont Trust” of 147,262dwt built 1999 South Korea for $24,45 mil, while at the beginning of 2009 sister vessel”NORDIC SPRITE” of 147,188dwt built 1999 South Korea had been reported sold for $56,7mil” said Golden Destiny.
In a separate report, shipbroker Shiptrade Services mentioned that “on the dry bulk segment the reported en bloc sale of three supramaxes (about 57.000 dwt built Sanfu China 2011) that were originally ordered by Oskar Wehr of Germany but were never delivered to their original owners as they were not delivered on time. The vessels have been bought by “Precious” of Thailand for USD 26 million each en bloc. On the wet sector the most notable reported sales are those of two modern LR1 tankers, sold for USD 26.5 million with a TC back at USD 15.000 per day. The vessels are the sisters “SN Federica” and “SN Azura”. Also the en bloc purchase by Sinochem of two product / chemical tankers (22.000 dwt built Spain 2000/2001) for USD 44 million. Regarding purchase interest, Inquiries for Panamaxes of all ages are still firm as well as for Handies and Handymaxes. Modern interest for Supramaxes has increased and buyers for capes are still there, mostly for nineties and modern tonnages. On the wet sector MR’s remain of strong interest followed by LR1 and Aframaxes, but VLCC tankers have shown some increase in demand, together with some enquiries from conversion buyers for 90ies built tonnage” mentioned Shiptrade.
Meanwhile, in the demolition market, according to Golden Destiny, “the scrapping momentum is being monopolized by bulk carriers with owners willing enough to send their vintage units for disposal at the best levels offered by scrap buyers in the Indian subcontinent region. With the monsoon season and Ramadan Holidays to have ended, the scrapping momentum is estimated to continue firm supported by solid scrap levels with India and Bangladesh now paying $500-$505/ldt for dry/general cargo and $525/ldt for wet cargo.
The week ended with 23 vessels reported to have been headed to the scrap yards of total deadweight 756,187 tons. In terms of the reported number of transactions, the demolition activity has been marked with an increase of 15% from previous week’s high levels, while there has been a 9.2% increase in terms of the total deadweight sent for scrap. In terms of scrap rates, the highest scrap rate has been achieved this week in the tanker segment for a handysize unit of 33,115dwt built 1994 with a lightweight of region 10,830tons that has been sent for beaching in India at $615/ldt including 140t/150t stainless steel. Bulk carriers continue to be the most popular scrap candidates grasping 48% and liners follow with a 30.5% share, whereas scrapping activity in the tanker segment remains limited with only 2 units reported for scrap. India is on the frontline digesting every week the largest volume of
demolition transactions, this week won the 52% share of the scrapping business. At a similar week in 2010, demolition activity was standing at 30.4% lower levels, in terms of the reported number of transactions, when 16 vessels had been reported for scrap of total deadweight 462,284 tons with tankers holding 37.5% of the total volume of activity and bulk carriers only 18.8%. India and Pakistan were offering $390 -$395/ldt for dry/general cargo and $430 wet cargo, while Bangladesh market was inactive” concluded the report from the Piraeus-based shipbroker.