Smaller bulkers Lead Bulker Sales

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Credit: VVBlog

Market Chat on Week 18 & 19 by Blog Vessels Values.

Small Bulkers lead S&P transactions in 2023

Smaller Bulkers have led bulker sale and purchase transactions so far this year, with a share of over half of all secondhand deals. Handy Bulkers made up the majority, accounting for c.31% of sales, and Supramaxes followed at c.25%. The average age of vessels sold in these categories are 13YO and 14YO respectively.

After a steady decline that followed the 12-year high seen in May 2022, values for both sectors have firmed since the start of the year. 10YO Supramax values for vessels of 60,000 DWT have firmed by c.7.5% from USD 21.48 mil to USD 23.09 mil. For Handy Bulkers of the same age, values have jumped by c.9.94% over the same period, from USD 15.49 mil to USD 17.03 mil.

It is mainly Greek owners who have been selling their vessels, accounting for c.20% of sales, followed by Singapore at c.17% and China at c.12%. Smaller Bulkers have been attractive to buyers over the last few years due to their versatility and ability to trade a wide range of commodities in a wide range of ports.

Notable sales include Supramax Kitakami (55,700 DWT, Apr 2009, Mitsui Tamano) sold to Atlantica Shipping for USD 16.00 mil, VV Value USD 16.60 mil, and the Handysize Maestro Diamond (36,900 DWT, May 2015, Saiki) sold to Devbulk for USD 22.50 mil, VV Value USD 22.62 mil.

Tanker newbuilds

Tanker newbuilding orders have risen by 250% YoY from 24 in the first four months of 2022, to 85 so far in 2023. Aframaxes/LR2s account for the majority of orders at c. 39%, followed by Suezmaxes at c.30%, Handy Tankers at c.28%  and Panamaxes trailing behind at a mere c. 3% of the newbuilding orders placed in 2023.

April was an active month for Tanker orders, resulting in 39 new contracts inked. The most recent orders included a Dalian built LR2 of 115,000 DWT for USD 62 mil, a Hyundai Mipo built MR2 for USD 46 mil and a Hyundai Samho Heavy Industries Suezmax for USD 85 mil.

Greek ship owners have been responsible for over half of all new orders at c.54%, followed by Japan at c.25%, and tied for third was the UK and the UAE with a share of just 5% each. Companies who have ordered en bloc recently include Dynacom Tankers, Capital Ship Management and Maran Tankers.

Notable sales include 10 x LR2 Tankers by Dynacom Tankers for 115,000 DWT, scheduled to be delivered between 2025-2026 and contracted to be built at Dalian Shipbuilding for USD 62 mil each en bloc.

VesselsValue data as of April 2023.

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Source: Blog Vessels Value