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The first five months of 2024 have drawn to a close

The first five months of 2024 have drawn to a close, and activity in the bulker sale and purchase market has been significantly more active than in the tanker market. Nearly 400 bulkers (386 vessels based on our data) have changed hands so far in 2024, with a total value of approximately USD 7.7 billion (average price per vessel: USD 20 million). Greek buyers are the most active participants in the bulker S&P market, with 89 transactions, closely followed by the Chinese with 75 transactions. Similarly, Greeks are also the top sellers, with 75 sales, while the Chinese trail behind with 48 transactions.

In contrast, the tanker S&P market has seen a slower pace, with just over 200 tankers sold this year (212 vessels based on our data), valued at approximately USD 8.1 billion (average price per vessel: USD 38 million). Both Chinese and Greek buyers have acquired a similar number of tankers, with 30 and 28 vessels respectively. However, on the selling side, Greeks have been the most active, offloading 32 vessels – nearly 20 more than the second-place holder, Norway -which has sold 14 vessels. This suggests Greeks are capitalizing on the current high market prices by selling older tankers at a profitable rate. The Greek shipping industry is exhibiting a clear preference for dry bulk carriers over tankers in 2024, a trend that is evident in both purchasing and sales activities. This shift in focus is driven by several factors, including favorable market prices for dry bulk carriers and a strategic move towards investing in younger and larger vessels.

Greek shipowners have purchased 28 more dry bulk carriers compared to the same period in 2023. This increased investment is reflected in the USD 1.2 billion spent on dry bulk carrier acquisitions, a significant jump from the USD 750 million spent in the first half of 2023. This buying spree has been particularly active in February and March, with expenditures of USD 884 million and USD 365 million, respectively. On the sales side, Greek shipowners have generated approximately USD 1.9 billion in revenue from bulkers’ sales by the end of May 2024, representing a substantial increase of USD 350 million compared to 2023. The first three months of the year were particularly lucrative, with total sales revenue reaching around USD 900 million.

While the dry bulk carrier sector is experiencing a surge in activity, the tanker market is seeing a more cautious approach from Greek shipowners as they have bought 3 vessels less than last year. Despite that, Greek owners spent approximately USD 1.3 billion on tanker acquisitions in the first five months of 2024, significantly more than the USD 650 million spent during the same period in 2023. This expenditure is about 75% the total amount of 2023 that Greek owners spent on purchases. Greek shipowners have generated USD 1.2 billion in revenue from tanker sales in 2024, a significant decline from the USD 2.5 billion earned in the same period of 2023. The peak months for tanker sales were January and April, with revenues of UDS 300 million and USD 277 million, respectively, against expenditures from Greek owners of USD 438 million and USD 502 million. The observed shift towards dry bulk carriers and the preference for younger, larger vessels in the tanker market suggest a strategic move by Greek shipowners to capitalize on long-term market trends. Dry bulk carriers are expected to remain in high demand due to the increasing global demand for commodities, while larger vessels offer economies of scale and operational efficiencies.

Sale and Purchase

Dry:

On the dry S&P activity, Chinese buyers were very active this week, being behind almost all the vessels changed hands. On the Capesize sector, the “Eastern Windflower”- 175K/2010 New Times was sold for low USD 28 mills to Chinese buyers. The Supramax “Seacon 8” - 57K/2012 Ningbo Beilun was sold for USD 14.13 via online auction to Chinese buyers. Last but not least, Chinese buyers acquired the Handysize “Aktea R”- 28K/2010 Imabari for USD 10.8 mills.

Wet:

The tanker S&P activity was subdued for another week with only one sale to report. The MR2 “Stolt Sisto” - 46K/2010 SLS found new owners for USD 28.5 mills.

Xclusiv Shipbrokers Inc.