Things don’t look that bright especially for bulkers and tankers

By Harry Vafias

MONTHLY SALE AND PURCHASE REPORT  

We are just before the commencement of the summer season but things don’t look that bright especially for bulkers and tankers.. many funds and investors that poured equity like crazy in shipping deals and Newbuildings back in 2013 and early 2014 have been very disappointed by the freight markets until now.. Two sub segments in particular that look overbuilt are the MR tankers and ultramax bulkers!

Lets begin our analysis from the new orders front.  Shanhaiguan has received an order for five 38,000 dwt handies costing $24 mill each for long charter to COSCO while Jiangsu eastern won an order from ample oceans for twelve ultramaxes costing $28 mill each followed by multiple options! Doonbeg also ordered four similar ships at yangfan costing $29 mill each while imabari also received two orders for similar ships from kuang ming who has two more similar ships on order at that yard! Nantong COSCO won two orders for ultramaxes from JOSCO while W marine went to sainty for two option two 84,000 dwt bulkers costing abt $34 mill each.

 Shandong has added two more VLGC’s at Daewoo costing $79 mill each (they now have six on order at Daewoo) while imabari won an order for a 178,000 cbm LNG from elcano with MEGI engine for long term charter to  gas natural. Eastern pacific (ofer) went to sungdong for three option two suezmaxes costing $64 mill each while gaslog returned to Samsung for two more 174,000 cbm LNG carriers. NYK agreed to build one 155,000 cbm LNG ship at a JV between imabari and Mitsubishi for long charter to TEPCO, ocean yield ordered three 36,000 ethane/ethylene carriers at Nantong sinopacific costing $80 mill each for long bareboat to Hartmann and odfjell added four 22,000 cbm ethylene costing $50 mill each with financial backing from oakhill and breakwater! Petredec agreed with jiangnan to build four 21,000 cbm ethylene ships costing $55 mill each while eastern pacific agreed with Hyundai mipo to build two more 38,000 fully ref LPG ships (they now have four on order at that yard) costing $51 mill each.

Lets continue with the secondhand dry sales. The Italian built ‘abyo charlize / abyo sienna’ both 75,000 dwt built 97 got $7,2 mill each, the ‘malto blossom’ 50,000 dwt built 03 japan 4x30 got $17,8 mill and the ‘matisse’ 34,000 dwt built 2011 korea 4x30 got $23,5 mill. Oceanbulk paid $23 mill for the ‘shirakumo’ 87,000 dwt built 06 japan and also bought the ‘FD luigi damato’ 180,000 dwt built 06 japan for $40 mill ‘pleiades’ 68,000 dwt built 97 japan got $9 mill and the ‘orient rose’ 56,000 dwt built 06 japan 4x30 fetched $22 mill from thoresen thai. The ‘komatsushima star’ 55,000 dwt built 09 japan 4x30 got $26,5 mill, the ‘chane navigator’ 54,000 dwt built 10 china 4x30 achieved $18,5 mill and the ‘greta’ 53,000 dwt built 07 china 4x30 got $15,2 mill. The ‘pacific tramp’ 33,000 dwt built 11 china 4x30 got only $16 mill probably due to its being Chinese built( look at price achieved by matisse) while Victoria steamship paid $31 mill for the ‘mokpo star’ 82,000 dwt built 12 korea.  The ‘bulk liberty’ 46,000 dwt built 98 japan 4x30 achieved $12,8 mill while the ‘bulk providence’ 30,000 dwt built 07 india 4x30 got $13 mill.

Lets end our report with the 2^nd hand tanker transactions. Total paid $178 mill enbloc to buy the ‘olympia / antarctica’ both 315,000 dwt built korea 09/08 respectivelly, probably for FPSO conversion while DHT paid $49 mill for the ‘younara glory’ 320,000 dwt built 04 korea. Teekay paid $154 mill enbloc for the ‘A elephant / B elephant’ both 300,000 dwt built 2010 korea while prolembros paid $21 mill for the ‘kou-ei’ 280,000 dwt built 99 ($2 mill above scrap).  Teekay also purchased the ‘neches/guadalupe’ for $95 mill enbloc, both 105,000 dwt built 12 korea, coated while gialozoglou paid $9,3 mill for the ‘atlantic lombardia’ 35,000 dwt built 2000 korea, epoxy coated. Last but not least the ‘jag padma’ 47,000 dwt built 96 japan, pumproom got $9,2 mill.