- Greek ship owners prefer younger bulkers with respect to the dry bulk market heating up.
- SnP values exhibited a soft upward trend without excluding the scenario for a bullish increase on values in August.
- Greek market is expected to become an important hub for vessels available for sale in the short run, with no objections to the possibility of the continuous increase on freight rates.
With the dry bulk market heating up, Greek ship owners are actively looking to acquire modern dry bulk tonnage, reports Hellenic Shipping News.
Rising performance of Capes
Tonnes of ink has been spent analysing the rebound of the dry bulk market the last weeks.
The most representative example being the rising performance of Capes which managed to reach a five and a half year high within a 3 month period.
The rest of the sizes followed the same path and thus created a positive sentiment.
Upward trend by SnP values
Mr. Nassos Soulakis SnP Broker with Intermodal said that, with regards to the SnP, buying interest is stronger than the first quarter of 2019, with the number of transactions having correspondingly increased.
He added that SnP values displayed a soft upward trend without excluding the scenario for a bullish increase on values during the traditionally quieter August.
Focus on Young vessels
Majority of Greek Ship-owners are focusing their attention on the lists of vessels that are available for sale that are younger than 15 years old.
The chance for older vessels to get sold will increase provided that the dry bulk market continues at these healthier levels, he said.
Eventually, this will create the necessary conditions for a possible re-investment, either by renewing fleets with younger vessels or by investing into a different segment.
Handysize bulkers
Soulakis added that with respect to the Handysize bulkers, from the 52 vessels that were built prior to 2000, with most of the sales being recorded around 2016 when asset values were at historical lows, making it an easy option to sell.
With regards to post 2000 Handies, the majority of them are vessels of 28,000 dwt and with the current value for a Japanese built 2003-2004, which is around low-mid $5.0m and for vessels 2013 built at around low-mid $8.0m, the conditions are looking favourable for a possible fleet renewal.
- Handymaxes – with an increased concentration of pre-2000 built vessels, will, due to the sheer number of vessels as well as their age, be form a large pool of sale candidates for the near future.
- On the post 2000 Handymaxes, the competition and the pressure from bigger Supras of similar age on the chartering front, could be a critical factor in the decision of selling.
- On Supras and Panamaxes, with most of the owners possessing a company with a fleet of more than 3-4 vessels, the driving force in a potential fleet renewal will be the strategic approach from owners to renew the age of their existing fleet.
- On Capes – it is important to note that 1/3 of the vessels are newbuilding deliveries placed by the same owners, who have traded these vessels for over 15 years – including the golden years of the dry market- which points to self-evident inferences.
He concluded that the Greek market is expected to become an important hub for vessels available for sale in the short run, with no objections to the possibility of the continuous increase on freight rates.
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Source: Hellenic Shipping News
