BERLIN OR BUST

Dry Cargo

Handy Hunt

This week sales list is largely dominated by handysize sales despite of the recent softening in freight rates. Many buyers will find this as a relatively stable investment with less volatility in earnings, for instance since the beginning of the years appreciation, the time charter average has ranged from US$12,500 to 14,000 pd. Correspondingly, it does not appear that values have moved very much, as illustrated by the sale of the Orix controlled “SPICA HARMONY” (36,908 dwt / built 2019 Oshima, Japan), which is reported sold at US$ 28.5 m and relatively in line with Pan Ocean’s purchase of the year newer sister, namely the “PERSEUS HARMONY” at US$ 29.5 m in mid-April. For older handies, the reported sales indicate that values are still under pressure with values softening further.

Fewer sales of larger sizes vessels perhaps suggests a pause in activity but again with values remaining relatively stable. For instance, the scrubber-fitted post-panamax “CLAAS OLDENDORFF” (95,750 dwt / built 2013 Imabari, Japan) is being reported at a firm US$ 27 m, which is pretty much in line with sale in April of unscrubbered sister “LOWLANDS RISE” at US$ 26 m. Similarly, there are reports that the kamsarmax “BW KOBE” (81,586 dwt / built 2019 Tsuneishi Cebu, Philippines) may have been committed at region US$ 37 m, which would match last done.

Tankers

Product Plateau

With a slow tanker market to report we have welcomed the distractions of Wimbledon and the final matches of the Euros this week. High values in the crude sector are seemingly under pressure as the spot market takes a back pedal and maybe we will see an adjustment in prices in the older tonnage as sellers want to take advantage of these good levels, but anyone with modern units will presumably wait and sit out the summer lull. There appears reluctance in the product sector to buy as values swelter, but we see some aggressors taking advantage of the few buyers stepping up. This week we hear that Indian buyers have picked up the “ZEZE START” (49,999 dwt / built 2009 Hyundai Mipo, S. Korea), which has gone at US$ 27.5 m with surveys due in line with the same aged “GUNMETAL JACK” (50,106 dwt / built 2009 SPP, S.Korea), which sold for the same price a month ago, so have we now peaked?

Recycling

Kicking The Can

Sentiments in the Recycling markets are subdued with the next few months looking rather quiet. The Monsoon seasons are currently happening in India and Bangladesh and are now in full swing and unfortunately steel demand is diminishing. India’s annual Budget has been scheduled for the 23 July and all eyes are on the Government as they hope there will be announcements being made giving real impetus to more infrastructure projects on the horizon, which in turn could finally help propel the local steel demand. Meanwhile, the Budgets in Bangladesh and Pakistan have adversely affected the Recycling markets with prices of steel plates in Chittagong now down by almost US$30-35/LT. In other news from Bangladesh we can report that they have recently received another loan from the IMF, however the restrictions on Letters of Credit are still lurking thus keeping activity rather sluggish. Elsewhere in Pakistan Custom duties were increased by 2% further denting the hopes of Recyclers to secure tonnage.

S&P Sales

Newbuild & Secondhand Prices

Newbuild and Second Hand Benchmark Values ($ million) vs Historical Average Values ($ million)

Contact Details

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