Contents
Table of Contents
Dry Cargo
Looking for Love
This week, the Ultramax “SAGAR KANTA” (60,835 dwt / built 2013 Iwagi, Japan) was sold to Indonesian buyers for US$19 mill, closely following last month’s sale of “OMISHIMA ISLAND” (61,398 dwt / built 2013 Iwagi, Japan) for US $19.5 mill. Both vessels had comparable docking positions, reinforcing the ongoing softening trend in Ultramax values—a pattern mirrored across other segments. The flood of new Ultramax deliveries is a key pressure point, with over 25 hitting the water in January alone and nearly 200 more expected this year. This influx has left clear marks on both freight rates and asset values. While current prices remain well above the lows of 2019-20, they have been on a steady decline since late last year. The critical question now is: how much further can they fall?
In addition to Ultras, other segments too have witnessed a steady drop in asset prices, for example the Post Panamax “ALCMENE” ( 93,193 dwt / built 2010 Jiangsu Newyangzi, China) was sold for US$11.9 mill with surveys freshly passed in December last year. In contrast to this sale, “PISCES FIRST” ( 93,238 dwt / built 2010 Jiangsu Newyangzi, China) was sold for US$12.9 mill two months ago with surveys due later this year. This fall again can be attributed to rather dull prospects for the overall dry segment with only economic tailwinds and favourable geopolitical environment having the potential to reverse this fall.
Tankers
Liquid All Sorts!
A number of buyers offered last week for the Taiwanese VLCC “FPMC C INTELLIGENCE” (301,861 dwt / built 2010 IHI, Japan) with the best bidders being circa US$ 48 mill, which is in line with the recent sale of the slightly older “WAFRAH” (317,788 dwt / built 2007 Hyundai Samho, S. Korea) which sold for region US$ 40-41 mill. Owners ideas, however, are in the low US$ 50 mill’s therefore they will either have to have a rethink on their numbers or keep the vessel and take her through her surveys which due in April.
NS Lemos are reported to have take a good profit on two of their very modern LR2s “KAVAFIS” and “ELYTIS” (113,840 dwt / built 2023 + 2024 SWS, China). We believe they were contracted in the mid US$ 50 mill’s and this week they have sold to other Greeks at US$ 143 mill enbloc, so over US$ 20 mill each profit; and since delivery they have enjoyed 1-2 years of profitable chartering.
The MR1 market is fairly illiquid with few transactions taking place to demonstrate benchmarks, but this week we have a few sales to report. Notably we hear the “SUNNY STAR” (37,857 dwt / built 2010 Hyundai Mipo, S. Korea) has gone for somewhere between US$ 17-17.5 mill, which is a large drop from what she would have fetched 9 months earlier. The price drop being supported by the sale of the 1 year older sister “EASTERLY CANYON” (34,998 dwt / built 2009 Hyundai Mipo, S. Korea) that we hear has gone for US$ 16 mill.
Recycling
All Out of Love
The Recycling markets continue to remain under tremendous pressure and Trump’s Trade Tariff’s are only worsening the steel demand. Local steel markets in Alang have further slipped with very little demand locally. Moreover the Rupee has further weakened to INR 88 for the first time in history which does not bode well. Ship-breakers are finding it increasingly difficult to buy ships with the outlook seemingly pretty bleak. Similar is the plight in Bangladesh coupled with the country’s economic turmoil. There are handful of breakers still willing to take a punt keeping the market ‘alive’ however overall the sentiments are pessimistic with prices for dry bulk now going below US$ 450/LT. On the plus side there is set to be fresh discussions taking place between USA and Russia for the first time since 2022 and this could see a massive impact on older ships and perhaps a flurry of older ships heading towards the graveyard, but this may also put added pressure on recycling price levels.
S&P Sales
| Vessel | Dwt | Built | Yard | Buyers | Price | Notes |
| Bulkers | ||||||
| NSU INSPIRE | 250,813 | 2011 | Namura (Japan) | Berge Bulk | 37 | Scrubber |
| ALCMENE | 93,193 | 2010 | Jiangsu Newyangzi (China) | Greek buyer | 11.9 | SS psd 12/24. BWTS. |
| SENTOSA SPIRIT | 81,911 | 2020 | Tsuneishi (Japan) | Greek buyer | 32 | SS due 2/25. BWTS. |
| SAGAR KANTA | 60,835 | 2013 | Oshima (Japan) | Indonesian buyer | 19 | DD due 6/26. BWTS. |
| RIVER GLOBE | 53,627 | 2007 | Yangzhou Dayang (China) | Undisclosed | 8.5 | DD due 8/25. |
| NORD NANAMI | 38,204 | 2012 | Imabari (Japan) | Undisclosed | 13.5 | SS+DD due 06/25. BWTS |
| LIBERTY C | 32,618 | 2012 | Jiangsu Zhenjiang (China) | Undisclosed | 9.2 | DD due 11/25. Logs. |
| Tankers | ||||||
| LOGGAM | 299,996 | 2003 | Samsung (Korea) | Undisclosed | 31 | DD due 4/26. |
| KAVAFIS + ELYTIS | 113,840 | 2023 + 2024 | SWS (China) | Centrofin | 143 en bloc (on subs) | Coated. Scrubber. Tier III. LNG ready. |
| FREE SPIRIT | 113,091 | 2008 | New Times (China) | Undisclosed | 36 | DD due 08/25 |
| PS AUGUSTA | 49,999 | 2011 | STX Jinhae (Korea) | Middle Eastern buyer | 25.6 | Deepwell. SS due 3/26. BWTS. |
| SUNNY STAR | 37,857 | 2010 | Hyundai Mipo (Korea) | Chemnav | (17.5) / low 17 | Deepwell. SS due 5/25. BWTS. |
| EASTERLY CANYON | 34,998 | 2009 | Hyundai Mipo (Korea) | Greek buyer | 16 | Deepwell. SS due 07/27. BWTS. |
| GOLDEN DAHLIA | 34,834 | 2021 | Fujian Mawei (China) | Union Maritime | 32 | Pump-room. Epoxy. 3 grades. SS due 11/26. BWTS. |
| Containers / Ro-Ro / Reefer / PCC/PCTC | ||||||
| NORDLION | 23,574 | 2014 | Zhejiang Ouhua (China) | Middle Eastern buyer | 24 | 1,756 TEU. Gearless. DD due 3/27. BWTS. |
| EVI | 17,350 | 2008 | Jiangsu Yangzijiang (China) | Undisclosed | 12.7 | 1,345 TEU. Geared. DD due 7/25. |
Newbuilding Orders
| Client | Type | Size | Shipyard | Delivery | Price (US$ mill) | Notes |
| Tankers | ||||||
| COSCO Shipping Energy Transportation | Aframax | 114,200 dwt x 2 | COSCO Yangzhou (China) | TBN | 86 | Methanol DF. Sub shareholders’ approval. |
| COSCO Shipping Energy Transportation | LR2 | 190,900 dwt x 2 | COSCO Yangzhou (China) | TBN | 89 | Methanol DF. Sub shareholders’ approval. |
| COSCO Shipping Energy Transportation | LR1 | 74,000 dwt x 2 | COSCO Dalian (China) | TBN | 64 | Methanol ready. Sub shareholders’ approval. |
| Containers / Ro-Ro / Reefer / PCC/PCTC | ||||||
| Evergreen | Containership | 24,000 TEU x 6 | Hanwha Ocean (Korea) | 2028-2029 | 265-295 | – |
| Evergreen | Containership | 24,000 TEU x 5 | GSI (China) | 2028-2029 | 265-295 | – |
| Danaos Corp | Containership | 9,200 TEU + 2 | Huangpu Wenchong (China) | 2027 | 105 | Methanol dual-fuel ready. Scrubber. Ordered 12/2024. |
| Gas (LNG / LPG / LEG / LAG) | ||||||
| Hanwha Shipping | LNG | 174,000 cbm x 2 | Hanwha Ocean (Korea) | 2027 | 252 | – |
| Evalend Shipping | LNG BV | 18,000 cbm x 2 | Hyundai Mipo (Korea) | 2028 | 92.5 | Bunkering. |
| H-Line Shipping | LNG BV | 18,000 cbm x 1 | HJ Shipbuilding (Korea) | TBN | 88 | Bunkering. |
Newbuild & Secondhand & Prices
Newbuild and Second Hand Benchmark Values ($ million) vs Historical Average Values ($ million)
| Vessel Type | NB | 5yo | 10yo | 10yo ave~ | 10yo ave % diff |
| Tankers | |||||
| VLCC | 128.0 | 114.0 | 84.0 | 54.1 | 55.3% |
| Suezmax | 90.0 | 76.0 | 58.0 | 39.4 | 47.2% |
| Aframax | 75.0 | 64.5 | 51.0 | 31.8 | 60.4% |
| MR | 51.5 | 41.5 | 31.0 | 21.9 | 41.6% |
| Bulkers | |||||
| Capesize | 75^ | 61.0 | 42.5 | 25.7 | 65.4% |
| Kamsarmax | 37^ | 33.0 | 25.0 | 17.9 | 39.7% |
| Ultramax / Supramax | 34.5^ | 31.0 | 23.0 | 14.9 | 54.4% |
| Handysize | 30.5^ | 25.0 | 17.0 | 12.4 | 37.1% |
^ = Chinese price (otherwise based upon Japanese / Korean country of build)
~ = 10-year-old vessel over 10 years (basis standard contemporaneous Dwt/spec for each type).
Recycling Activity
| Vessel Name | Built (Country) | DWT | Lightweight (LWT) | Delivery | Price (US$ per LWT) | Notes |
| Bulkers | ||||||
| Millenium Leader | 1996 Japan | 4,493 | Asis Singapore | 420 | – | |
| Run Fu 7 | 1990 Japan | 7,176 | Bangladesh | 445 | – | |
| Tankers | ||||||
| Zenith | 1990 S. Koeran | – | Bangladesh | Undisclsoed | – | |
| Recycling Prices ($/Ldt) | ||||
| Bangladesh | India | Pakistan | Turkey | |
| Tankers / Cont / Ro-Ro / Capes / PCC / LPG / LNG | 465- 480 | 460 – 475 | 460 – 475 | 310 – 320 |
| Bulkers / Tween / General Cargo | 445 – 455 | 440 – 450 | 440 – 450 | 290 – 300 |
Contact Details
| Sale & Purchase Brokers | E: sap@eagibson.co.uk |
|---|---|
| LONDON | T: +44 20 7667 1073 |
| Maria Anagnostou | M: +44 785 627 9989 T: +44 207 667 1027 |
| David Cundy | M: +44 774 832 0896 T: +44 207 667 1150 |
| Roger Harrison | M: +44 738 426 9740 T: +44 207 667 1226 |
| David Hawkins | M: +44 778 829 9249 T: +44 207 667 1151 |
| Rupert Scott-Hughes | M: +44 777 091 5543 T: +44 20 7667 1241 |
| George Stratakis | Newbuildings | M: +44 735 503 1672 |
| Stuart Koenig-Roach | Valuations | Expert Witness | M: +44 789 472 4868 T: +44 20 7667 1238 |
| ATHENS | |
| Daniel Gifford | Newbuildings | M: +30 69 494 55588 T: +30 211 198 2391 |
| MUMBAI | |
| Anuj Gosalia | M: +91 982 022 9999 |
| Sriniwas Ghate | M: +91 865 52 89641 |
| HAMBURG | |
| Torge Schepers | M: +49 151 111 84103 |
