News in English

The demand for second-hand dry bulk vessels has experienced a significant surge

The demand for second-hand dry bulk vessels has experienced a significant surge during the first 8-month period of 2024, with a total of 545 ships changing hands, around 24% up compared to the similar period of 2023 when a total of 440 vessels were sold. This represents the highest volume for the period of January to August since 2021. The Supramax and Handysize sectors have noted the highest buying appetite in 2024 with 135 and 128 sales respectively, representing together around 50% of total bulk carrier S&P activity. The Capesize sector ranks third in terms of buyer interest, with 64 vessels sold. Ultramax, Panamax, and Kamsarmax sectors have recorded similar transaction volumes this year, with 45, 46, and 49 sales respectively. Nearly half of the sales were for vessels aged 11-15 years old, followed by 16-20-year-old vessels, which accounted for 18% of all bulk carrier sales.

Dry bulk newbuilding momentum remains strong, though it has slowed down compared to the previous two years. From January to August 2024, a total of 283 contracts were signed, 32% down from the same period in 2023 when 420 orders were placed. Ultramax and Kamsarmax sectors drive the NB activity in 2024, with 118 and 66 orders respectively.

Tanker S&P activity has continued to exhibit a subdued trend in 2024, reaching its lowest point since the pandemic-induced slump of 2020, while tanker NB activity has gained momentum. Within 2024 so far, a total of 305 tanker vessels have been sold, significantly lower than the 450 recorded during the same period in 2023. MR2s are the lions share of the tanker S&P activity, with 105 sales, representing around 35% of total tanker S&P activity this year. This is followed by the Aframax/ LR2 sector with 48 sales, while the VLCC sector is also high on the buying charts with 39 sales. Handysize, Panamax/LR1, and Suezmax S&P activity remains sluggish in 2024, with only 33 Handysize, 16 Panamax/LR1, and 14 Suezmax vessels changing hands. Buying appetite in tanker S&P activity is focused on vintage vessels, with 107 vessels aged 16-20 years old (accounting for 35% of all tanker transactions) finding new owners in 2024. This age group was followed by 11-15-year-old vessels with 82 sales.

On the other hand, tanker NB activity is very firm in 2024 so far, with 408 contracts having been signed, within January – August 2024, a number which will surely surpass the whole 2023 period when a total of 438 orders were recorded. In other words, during first 8-month of 2024, tanker contracts are just around 7% less than the whole 2023 period (full 12 months), and 2024 may possibly be the highest order volume since 2007. The total tanker orderbook (for ships >= 10,000 DWT) stands at 986 vessels as of 23rd August 23 2024, with an orderbook-to-fleet ratio of 12.9% based on the number of ships. Aframax/LR2 and MR2 sectors are leading newbuilding orders in 2024 so far, with 73 and 107 orders respectively.

Sale and Purchase

Dry:

Two capesizes changed hands this week. “Pontotriton” – 177k/2007 SWS and “Maran Prosperity” – 174K/2006 SWS were sold to Kaishun Shipping and to undisclosed Chinese buyers respectively for USD 23 mills and USD 21.5 mills. The scrubber fitted and ice classed “Nord Penguin” – 82K/2015 Oshima was sold for USD 30.5 mills to Greeks, the same price that Ocean Freighters bought the scrubber fitted “Elsa S” – 81K/2015 Japan Marine. “Beauty Lotus”, “Beauty Lily”, “Beauty Peony” all 64K/2015 China shipping industry were sold enbloc for USD 97 mills. The supramax “Sania” – 57K/2010 Qingshan was sold for USD 12.3 mills, about USD 3 mills lower than the OHBS handy “Efficiency Ol” – 37K/2010 Saiki (USD 15.35 mills). Finaly the handy “Floriana” – 34K/2012 21st Century was bought by Greeks at USD 14 mills.

Wet:

Tanker S&P activity had a huge deal this week with Capital selling nine scrubber fitted VLCCS to Bahri. “Amyntas” - 320K/2019 Samsung, “Miltiadis Junior” - 321K/2014, “Alterego”- 300K/2022 Hyundai Samho, “Amore Mio” - 300K/2022 Hyundai Samho, “Agitos” - 300/2019 Samsung, “Andronikos” - 300/2019 Samsung, “Amphion” - 300/2019 Samsung, “Atromitos” - 300K/2016 Daewoo and “Apollonas” - 300K/2016 Daewoo changed hands for USD 1 billion.

Xclusiv Shipbrokers