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The BDTI continues its upward spree

The BDTI continues its upward spree, reaching 29 consecutive positive closings at 1,286 points, at its highest level since 22 May 2023. This is the longest positive closing run the index has ever made. On the other hand, BCTI tries to find its footing as it stays around 774 points, almost 200 points lower than 968 points of 21 April 2023, last 6 months’ high. Despite the opposite situations between dirty and clean trading, the news keep supporting the positive feeling for the imminent future of the tanker market. This week, the Biden administration decided to ease some sanctions on Venezuela’s oil and mining sector, creating smiles with wet market executives. The easing of the sanctions is a response to the electoral agreement signed between the government of Nicolas Maduro and the opposition. This license authorizes transactions related to the oil and gas sector in Venezuela for six months while all other restrictions imposed by the United States government remain in place. Venezuela used to be a key player in the crude oil market as – back in 2015 – was producing about 3million barrels per day, while now the country only produces 700,000 barrels per day. The sanctions relief on Venezuela is unlikely to have an immediate impact on its oil production as infrastructure and oil rigs are damaged or poorly maintained, thus it will take years and significant investment in order for Venezuela to reach 3 million barrels per day production. But this could lead to a quick reshuffling of Venezuelan oil flows and a significant increase in exports to the US, replacing some of the high-quality US crude, which could be then used for export. This will also give a big hit to the sanctioned crude oil trade, sending a lot of idle “dark fleet” ships probably back to Iran and affecting the wet market even at the Far East, where Chinese independent refineries used to import about 350,000 barrels per day of Venezuelan crude oil. As soon as Venezuelan crude becomes freely tradeable, other countries will emerge to push up the price, which will lead to a decrease in flow to China until Venezuelan production increases. The vessels that probably will benefit the most from a shift from the Pacific to the Altantic basin, are Suezmaxes and Aframaxes, which already have seen their time charter equivalent rates increasing by 4 and 3.2 times respectively, since 10 of October 2023.

Let’s move from the crude oil trade to an analysis on the protagonists of the bulk carrier and tanker S&P activity, and their part to the active fleet of each category. According to our data, since the beginning of 2023, a total of 1,047 tanker and bulk carrier vessels have changed hands, with tankers counting for 537 sales and bulk carriers for 510. Star of the sales in both categories is the MR2 sector with 161 sales, constituting around 30% of total tanker sales, while almost 9% out of total MR2 active fleet have found new owners within 2023. Most of MR2 sales belong to 16-20 years old age group (68 sales), followed by 11-15 years old age group category (50 sales). On the tanker sector also, VLCC size is also very active, as 71 vessels have found new owners since the start of 2023, a significant ratio regarding of VLCC active fleet (8%). Panamax/LR1 sales may not compose a great proportion of total tanker sales (as we have noted 62 sales), however, 13% of Panamax/LR1 active fleet have been sold within 2023. Chinese and United Arab Emirates buyers are behind of the most sales, having purchased 29 and 26 vessels accordingly of MR2, Panamax/LR1 and VLCC sectors. Greeks are staring as sellers with 63 sales of MR2, Panamax/ LR1 and VLCC sectors. On the bulk carrier sector, Handysize and Supramax are the segments with the highest S&P activity, with 117 vessels of each category having been sold Y-T-D. The age group 11-15 years old is shipowners’ preference in both sectors, with 66 Handysize and 71 Supramax belonging to that age group. Activity on the Capesize sector is also very firm with 79 sales, constituting a significant proportion of Capesize active fleet (7%). Greeks are staring both as sellers and buyers having acquired and sold 71 and 64 vessels respectively of the Handysize, Supramax and Capesize sectors.

Sale and Purchase:

On the dry S&P activity, the Capesize sector continues to be busy, having to report 2 sales this week. The 10-year old Japanese built “Frontier Brilliance” - 181K/2013 Imabari found new owners for USD 30 mills. Furthermore, Alassia Newships have sold the Scrubber fitted “Cymona Iron” - 177K/2011 SWS for high USD 26 mills to UAE buyers. Moving down the sizes, on the Kamsarmax sector, Greek buyers seem to be behind of 2 separate deals, the “Asl Neptune” - 82K/2009 Oshima which was sold for USD 16.2 mills to Greeks and the “STL Miracle” - 82K/2008 Oshima which was sold also to Greeks for USD 15.3 mills. Castor Maritime announced the sale of 2x Panamax vessels, the “Magic Phoenix”- 76K/2008 Imabari and the “Magic Sun”- 75K/2001 Samho Heavy for USD 14 mills and USD 6.55 mills respectively. The Supramax “Rotterdam Pearl”- 58K/2010 Yangzhou Dayang was sold for USD 13.65 mills, while the 4-year older “Bulk Trident”- 53K/2006 Tsuneishi Cebu found new owners for high USD 9 mills. Last but not least, on the Handysize sector, the “Daiwan Dolphin” - 34K/2015 Namura for shade below USD 19 mills with index linked TC attached to clients of OSR Rotterdam BV.

On the tanker S&P activity, the VLCC “Timimus”- 319K/2002 HHI reported sold for low USD 30s mills. 2x MR2 vessels, the “James Cook”- 50K/2013 STX and the “Nord Steady” - 50K/2013 STX were sold enbloc for USD 34 mills each. Clients of FGas Vietnam acquired the Chemical tanker “Bunga Lily” - 20K/2011 Fukuoka for USD 21.7 mills.

Xclusiv Shipbrokers Inc.