In Hellenic Shipping News 03/02/2016
Finally, in the demolition market this past week, Lion Shipbrokers talked about “mayhem at the Subcontinent markets, as the rates are declining every week while several cash buyers fear that levels will touch $200 per lt (or even below) in the near future. We understand that 13 capes and 20 panamaxes have been torched this January alone, while numerous deals are failing and are being renegotiated. Following last week’s sale of caper JOHN OLDENDORFF 170K BLT 2001 SAMHO/S.KOREA LDT 22439, we are hearing that numerous other 2001 built capers are being pushed for demo. We picked up that a 7000 ldt handysize bulker (including 480t bunker r.o.b.) was fixed earlier in this week at $245 per LT and today she is being renegotiated to lower levels! China market is quiet as less & less candidates are available from local owners, while Turkey has softened further”, Lion concluded.
As the world’s major economies are taking a step back in terms of growth and key shipping markets like dry bulk and containers, are still reeling from the oversupply pressures, ship owners have refrained from new investments during the course of the past couple of weeks. This is evident both in the newbuilding, as well as in the S&P markets.
According to the latest newbuilding report from Allied Shipbroking, “it is a market in relative limbo, with small trickles here and there of tanker orders emerging though nothing too strong to write home about. This has been the general description been noted for over 4 months now, and having gone through a strong course during the 9 months prior to that, deep troubles are slowly emerging in the form of profit and loss reports by many of the major shipbuilders. Despite all this, on the price levels front we seem to have temporary been “stuck” at the current levels, pointing to difficulties in getting these numbers lower especially as the overall “pie” of new orders has shrunk to only a small fraction of what it once was. It looks as though the M&A clouds are now circulating, with a storm that will leave in its wake a considerably more lean and much smaller shipbuilding industry compared to what it was in its prime”, said Allied.
Meanwhile, in a separate note, shipbroker Clarkson Platou Hellas noted that it was “another quiet week in the Newbuilding market with only one order to report. Although contracted some time ago, it came to light this week that Zhoushan Changhong International Shipyard have received an order for four firm plus four optional 1,000 TEU Container Carriers from Jungerhans Maritime Services GmbH & Co KG in Germany. It is understood that the firm four units are set for delivery in 2H 2017 while the optional four units will be delivered throughout 2017 and 2018, if declared. This will be the first container order for this Yard and pricing remains undisclosed”, the shipbroker concluded.
Similarly, in the S&P market, Allied Shipbroking noted that “on the dry bulk side, the softening trend continues in terms of prices with further drops noted this week, though still at marginal levels. A big disparity between premium units and ones classed as “second tier” or “third tier” has started to widen with buyers taking more on the opportunity of cherry picking the “good” units while the market is on a weakening trend. On the tanker side, we have started to note a gradual increase in sales candidates, something that had been lagging these past couple of months. This will likely push for slightly softer levels despite what the performance in the freight market dictates. It looks as though there has been a considerable “spill over” effect from the dry bulk market keeping sentiment relatively low on the buyers’ front”.
Lion Shipbrokers wondered in its own report, whether we are witnessing an abyssal market plunge? “Since our last report, the BDI kept dropping daily and has stopped today at 317 points, just few points shy of breaking the 300 barrier. Asset values are dropping on a daily basis, making it extremely hard to put a price tag on any bulker nowadays. Nevertheless, the historically low asset values continue to attract buying interest as we recorded a total of 9 transactions (3 capes, 1 kamsar, 2 supras, 1 handymax & 2 handies)”, said the shipbroker.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
